♪ >> welcome to "lunch money," where we tie together the best stories, interviews, and video of business news. let's take a look first off at the menu. motors, carmakers wiping the snow off the windshield after a chilly february. wall street, bruce makes his case on fannie and freddie, saying that there is no debate necessary. wants out, neil cash kari once in. they have their reasons. , viral, all things he

had any awards. we will kick it off with what analysts are talking about, one intense weekend in the ukraine. >> what is the russian military going to do next? saturday, two more warships. monday, two more warships. -- sent 6000nt troops into the ukrainian peninsula. this morning vladimir putin took ofion under the banner protecting the russian speaking population that lives in crimea. all right, putin, but do not say president obama did not warn you. >> acree it -- clear violation of the borders of ukraine. just days after the world came to russia for the olympic games they wouldn't bite the combination of nations around the world.

indeed, the united states will stand with the international community in affirming the cost on military intervention in ukraine. >> mildly tough talk from the president on friday. there could be only one way for his administration to get the message out over the weekend. >> russia has engaged in military act of aggression against another country. this act of aggression is completely trumped up. that it isppened is really 19th-century behavior in violation ofury in the helsinki final act, in violation of the 1997 ukraine russia basis agreement. i spoke to 10 of the foreign ministers of those countries most engaged.

every single one of them are prepared to go to the hilt to isolate russia with respect to this invasion. they are prepared to put sanctions in place. they are prepared to isolate them economically. >> secretary of state, john kerry, threatening future economic sanctions. president obama warning against possible costs. the u.s. must have some sort of leverage over russia. >> we are talking about economic sanctions. but theren option, are so many self-inflicted wounds as well. wille, for instance, it hurt the europeans as well. >> of course europe has 30% of the natural gas coming from russia. any other possible sanctions on the table? at asset visas.

russia is a really big economy. it is not like the other countries that have been effectively targeted. from an analytics perspective, very little reason to believe that the sanctions strategy will work. >> not much leverage from the u.s. or europe, really, but there is a lot of ukrainian debt owed to russian banks. >> know, first of all, this is absolutely after chechnya the most important national interest that russia has. nothing that the west short of a military conflict that would have them even considering moving out of crimea. that is the first point. the second is that the european are not going to support that kind of behavior. germans are blanching even at

the idea of throwing russians out with the g-8. the notion that they will risk their economic relationship with relationshiptheir to support the u.s. here with serious sanctions, it is just not on the table. >> wow, the u.s. talks tough because it has to, but it seems that russia is willing to go the distance for the ukraine. >> he cares more about it than we do, by a lot. these economic sanctions we are talking about historically only work on smaller countries that are more independent. this is a large economy that is predominantly independent on oil and gas exports. obviously the european union has agreed to embargo 30% of their gas supply. for president obama. the united states is very little

trade with russia. europe does a lot of trade with russia. >> this is how vladimir putin does business. >> i am not sure that he cares much about their image. this man believes in traditionally hard power, doing things through strength, not goodwill. i don't think he cares much for the hearts and minds of the world. yes, they shined during the olympics a bit, that's fine, but he will take care of his neighborhood the only way he knows how to do it. unambiguous strength. putin havevladimir an endgame in mind? >> i don't think that he knows yet. i think he is not interested in the annexation of ukraine. there are ways for him to get what he wants short of annexation. annexation would be very difficult to carry through. >> the saber rattling over the ukraine sent the markets down to

start the week, but do not be surprised, investors have been looking for a chance, taking highs. look at all-time they got one, putin and obama, the other world leaders, just reading the script, doing what they have to do. hitting the roads next, we will tell you how the big carmakers weathered the story months of february. wall street, a storm of their own, and the fight for fannie and freddie, coming up on "lunch money." as we had to break, the volcano , three milesa city into the air. officials are considering evacuating 3000 people. ♪

lexus is "lunch money," on bloomberg television, streaming live on bloomberg.com, your tablet, and your smart phone. the february snowstorms kept buyers out of dealerships, for the most part, unless they were there to buy suvs and trucks. ford in february, car buyers stated way because of the big snowstorms. americans did by all-wheel-drive vehicles, especially jeeps. 47% of sales went to the fiat owned brands. nissan sales also went up 19% in the months. chrysler deliveries rose 11%. nissan had something like 16% in the game. ford and toyota fell.

inclement weather is not just affecting sales, it is affecting the roads and the potholes, as you are probably seeing. they are not just ruining cars, they are taking down city and state budgets as well. take a look. >> they are everywhere. >> like landmines. too many potholes. dangerous, gaping holes. cruz, of course, working overtime to fill the worst. >> they are out there seven days a week, even overnight.

♪ >> all right, we can get rid of the potholes, apparently, but next we are going to talk about getting rid of the driver. florida showcases an autonomous vehicle that uses infrared light to map its surroundings. >> this is a ford fusion hybrid. it looks at only -- it looks ite any other ford, except has infrared lights that scan the environment than much the same way another would. creating a three-dimensional map of everything, making 2.5 million measurements every

second. it means the car can accelerate, brake, or swerve without being told to. it is autonomous. >> there is a long way to go in that. the next big staff will be cars , road conditions and safety conditions. i suspect the technology will be there before the legislation that the driver is ready to accept it. >> ford aims to have them hit -- them on the road by the next few years. >> selling cars is a job that often carries a negative stigma, but there is one salesman who has found success in a life dealing wheels. >> there is not any car that i

cannot supply within 40 hours. >> if you want a supercar, where do you go to buy one? mayfair might sound like a good place to start, or you could try behind these gates. >> is here that you will meet tom hartley, a school dropout who has been selling cars and see was 12 years old. his speciality is finding the high-performance cars that you cannot. >> you could call me a dunce. in the early 1970's there was a magazine called "dandy." it had comics. calledto use something the glassy glide. >> he said that you never switch off. is that something that you were born with? >> i do think you have to be born with the gift. he boasts about not being

able to use a computer. his son, does, though, and it is changing the way they do business. >> it can be laid at night, on twitter, just a bit of banter. the next thing you know you have bought a car. instant messages, anything like that. >> what is the quickest you have gone from the start of negotiation to the end? >> six what's up messages. >> in six? >> yes. >> this lamborghini is our new model. >> while these are toys for the rich and famous, he does not own one himself. >> the last 10 years have become very much global. >> very strange.

all right, coming up, investors wage war over fannie and freddie. hear the arguments from bruce or horowitz, next. the man behind the social media site, pinterest. ♪

new development in the deal that just won't die. men's wearhouse, joseph a bank has reached an agreement to share the confidential information, moving the menswear rivals closer to a potential merger. >> looks like it is full steam ahead. for a long time, you know, the bank was resisting men's wearhouse, overturning the bid,

beating it back, announcing a crazy deal to buy eddie bauer, making itself a your and more improbable. now the two are sitting at the table. banks looks like a hero because they are getting that $65 per share that it wanted all along. again, even if the two sides agree on price, it is not a done deal. >> there are many more hurdles. >> there are. this deal obviously raises some antitrust scrutiny, right? one thing i had been hearing is that if they want to be difficult, which they have been over this entire process, that could bring them some protection in case regulators do not sign off on the deal, which could make men's wearhouse somewhat uneasy, complicating the negotiations going forward. or example, often times

unusually in these situations sometimes the acquirer in this case would demand something called a hell or high water provision, forcing the buyer to close in on regulators if they do not sign off on it. >> wall street, fighting for --,ie and freddie from a fighting for fannie and freddie, bruce berkowitz, he is suing the u.s. for compensation for the value of stock lost after the u.s. took over fannie and freddie in 2008. he is taking it one step further, demanding the company retained earnings and stop borrowing for the purpose of dividends to the u.s. government . he spoke of the surveillance team this morning. there is nonion debate. these are private companies.

they are no different than coca-cola. people talking about the debate around supply, the last time i looked on the bloomberg screen, i was on the list of shareholders who owned a piece of fannie mae and freddie mac. it does not make sense to me. we own them. i do not see anyone else who owns them. pay back the taxpayers, time to move forward. my note to the directors is to remind them of who they were. this is the issue, the directors of fannie and freddie have a lot of weight on them from washington. what was the catalyst to get washington to move? >> i look at it as if i was a director. i have a fiduciary responsibility to all

shareholders. i do not listen to what someone in washington tells me to do. i listen to the owners of the company that i represent. and >> judge ask you, a federal recently gave you the right to discovery in a lawsuit to find out if there were changes made. what do you hope to find? what do you think was hidden that you could not find before? >> the last decision that was made, 2012 when the sun was shining, it was obvious these companies were going to make very good money. a deal was made between one government agency and another. we do not understand it. it was not necessary and did not make sense.

it is about a mistake being made . it could have been an oversight, a careless mistake, or something where we believe it was a simple mistake. it is about the past. my discussion with the board of fannie mae and freddie mac, chatting with me, is about the future. government had every right to change their relationship. government does not have the right to alter past agreements from the 1970's, 1980's, 1990's and so on. time for the board to represent their own. that is the primary reason to have directors. we have directors capable of doing it and they are paid very well to represent the owners.

it is time to separate fact and fiction. >> there are 19 other lawsuits challenging the government bailout of fannie mae and freddie mac. hollywood's biggest night, from celebrity tweets to speeches, we have it covered tonight in oscars. ♪ flex it is 26 minutes after the hour. we are looking at conditions deteriorating throughout the session. unrest ino you have the ukraine, chinese manufacturing dropping to its lowest level in months. retailer shares of the actually recovering after the

company said that jcpenney will not report monthly sales anytime soon. the spokesperson said the retailer would try to provide updates throughout the rest of the year. more "lunch money," up next. ♪

♪ >> this is "lunch money," on bloomberg television, streaming live on bloomberg.com, your tablet, and your smart phone, i am matt miller in for adam johnson. moving pictures, the video is the story. china vowing to crack down on terrorism after a deadly knife attack over the weekend. the chinese president ordered the offensive after a band of knife wielding attackers killed 20 people at the train station in southeast china. for the attackers were also killed. no group has claimed responsibility so far.

the murder trial of oscar , underway in south africa. the paralympic and known as the , accused of killing his girlfriend on valentine's day. he said that he shot her thinking she was an intruder blowing holes in his own bathroom door. he has fled not guilty to the charges. hundreds rally in washington, d.c. against the pipeline. the march ended at the white house, where hundreds of demonstrators strapped themselves to the fence. the protesters were calling on president obama to halt construction on the pipeline that would carry oil from canada to the gulf coast. -- the more things change, the more they stay the same. the longest-serving member of congress in history is retiring after 58 years.

he says it has become too obnoxious to serve in the house. question, ift there is anything he could change, what would it eat? >> this is a great shame. this should not be that way. is the coming together. the great assemblage of the american people, deciding the issues that are important. the second thing is, all the business has been moved into the oppositions favor. newt gingrich and tom delay started that. it gave them control over the the congress, having control they wanted to have to run the place. >> would you return that power? >> sure, i would.

in the english parliament, the speaker is the king's man and is excluded or most of the decisions. >> so, vying for his seat, his wife is undeterred by the dysfunction that her husband is decrying. >> yes, i am a candidate for the democratic nomination for the 12th congressional district in michigan. even if i were not married to him, i would have tried to talk him into running for another term. with senator levin retiring, i believe we need the wisdom, experience, and dedication that john has brought to this job for 58 years, serving the people of southeastern michigan. tough decision for him. but i respect the fact that he has decided it is time.

>> if she wins, a dingell will have sat in that seat starting with -- 482 years, starting with the senior in 1982. maybe neil cache kari can get from thetical advice family. the former treasury official is challenging jerry brown, running on the platform of education and reform. and jobs. here he is on "bloomberg west." >> i want to bring manufacturing brock -- back to california. it is great that apple and these other companies have designed great technologies here. let's produce them hereto. 17% of californians need work. we can bring that down by putting people back to work. how is it that the ceos and leadership at google have had so much success? it started with a great education. i know that many are donating

money to education and nonprofits. they know that education is the key to the future. governor brown says we are doing great, but our schools are 46 in america. unless we can get every kid and education, we will not be a fair society. >> you can watch more of those interviews on bloomberg.com, or on our award-winning tablet app. you can marvel at the strange, weird circus of weirdness that is politics. next, we have an exclusive interview from the founder of pinterest. inspire then how to next generation of entrepreneurs. plus, the big winners at hollywood's big night. we have the details you need to know about. the academy awards, coming up. before we had to the break. spree -- speed, precision, skill, red bull and i would dobby.

-- abu dhabi ♪

"lunch money," on bloomberg television, streaming live on your tablet and smartphone. i am matt miller, in for adam johnson. social, we are focusing on one of the world's hottest startups, interest, putting the company's value at nearly $4 billion. ben silverman had his doubts on whether the company would ever become a success. emily chang sat down with silverman in a rare and exclusive interview. >> it has been a long road. but i think that most things in life that are worthwhile take a

while. both of my sisters are doctors. parents are doctors. yearis a minimum 12 commitment just to be the most junior doctor out there. that has always been in the back of my mind. yes, i think it is a long road for a lot of folks. if you are having fun and learning, if that is what you want, now is a great time to try it. >> was there a moment where you said -- now i need to make sure i do not give up? i know that in the early days it took a while for things to catch on, right? >> you can get a little bit discouraged. but i think the thing for me what was helpful was having people around me. like myt was folks girlfriend, now my wife, my ,ofounder, mentors and friends

i had to say would be great if they are going. a -- suche come such a long way. what is your vision for what pinterest will become? tool.will be a discovery we are building towards it. i have so many folks i looked up to. you mentioned people like elon musk, amazing. he and i look up to other entrepreneurs. people who are more into arts and science as well. anyone who is trying to build things make the world better. >> specifically along this journey, who has given you the best advice? >> one piece of advice that i got was from kevin hart, who

founded soon. we were talking and i said -- you know, like, i know that this will not be one of those huge tech companies and he said -- why not? could be. i think that was a cool thing to say. so many people give you reasons about why things won't work. what if you imagine that it would work? >> what about silverman's involvement with the education charity? >> i thought the mission was really cool. the idea of getting kids excited about entrepreneurship is a really good idea. sometimes school can feel abstract. >> why do you think it is important to teach these kids these skills? >> i think that a lot of entrepreneurship is about trial and error.

it is easy when you are a student to get discouraged and have someone tell you you are not smart enough. taking the criticism and keeping going, that is great. especially high school kids, they should develop this as early as they can. >> what advice would he have for his kids? >> i would tell them not to give up on what they want to do. do not let someone talk you out of your ambition. when you are a kid you put so much stock in what a doll say, good or bad, but no one, boss or teacher, knows what is in store for you. >> now, the tweet between did , ellenthe world degeneres is selfie bumped out the president of the united states. ♪

>> a big night for the oscars, ratings were up seven percent over last year. in case you missed it, here are the five big awards in under 25 seconds. >> actor, supporting role, jerod lehto. >> actress in a supporting role. [indiscernible] , alfonso-- director cuaron. >> actor in a leading role. matthew mcconaughey. >> best picture, "12 years a slave." >> that's it. >> "12 years a slave," the big winner, winning seven statues. here is the director, steve mcqueen, with charlie rose. >> for me there was a hole in the canon of cinema.

it was not referenced, it was not there for me. i wanted to investigate and find out about that. also a big winner, gravity, seven awards, with best director, sandra bullock. >> all of those things that frustrated me were things that once i figured out were a benefit -- hopefully the same thing is happening to the character and space. the loss of control, the frustration, the loneliness, the isolation. instead of fighting it it became a friend rather than something that was a problem. >> big disappointment for "american hustle," which went home completely empty-handed. and the wolf of wall street failed to win any trophies, despite five nominations. you do not have to be an oscar winner to win big bucks. here are the top actors that

have yet to win the gold. ♪

"frozene animated side, " took home best animated feature and best song, they crossed over the $1 billion mark for worldwide ticket sales. the only animated title to do three,s been toy story so to save to say that "frozen" is hot. >> based on the hans christian anderson tale, "the snow queen."

a film that walt disney had hoped to make himself. >> patience pays off. we had to wait a few decades. >> it follows recent hits like tangled and "reckitt ralph." exciting time at the studio. >> disney animation is in the midst of a creative renaissance. >> he cites their $7.4 billion purchase of pixar in 2006. recall ther sentiment at the studio shortly before the deal. >> it was a different attitude towards animation. definitely a different feeling in the studio. >> he credits the leadership of two of their founders. john lasseter was the first filmmaker to run the studio since walt disney. >> he understood what everyone was going through at each stage of production.

you cannot buy that sort of empathy. >> andrew millstein showed us the caffeine patch, where the central animators were in mind. us tois important for have accidental encounters of people, to check in and see what people are doing. >> for the first time director, she says the studio feels somewhat startup like. >> it is sort of like -- go ahead, try, blow it up if you have to. push. >> "frozen" uses much of the many animated films, but it also stays distinctly disney. >> there are lots of different people throughout the country who are rooting for disney animation to find its way back, creatively. >> congratulations to all the oscar winners and nominees who did not win.

i am sure that they are happy the awards are over. now they can eat again. ♪

>> it is 56 minutes past the hour, here is a look at "on the markets." levels, manystance day traders have wound up watching.

the s&p across the board, consumer discretionary as well, leading the charge downward. investors having to put their moving intoere, treasuries, the 10 year yield continuing to rush into that space. across thetion trading floor, i am joined by is contributing the selloff today to the ukraine and the unrest there. microsoft, visa, disney, nike, i cannot imagine that they have a lot of exposure to eastern europe. -- myhink that the market suspicion is that these stocks are selling off more for psychological reasons. profit taking, if you will. traditionalf the investor is headed back to 2008. the trigger on the sell button is heavier than it was a few years ago.

market dynamics in recent runoffs over the last few weeks, we are seeing good quality, large cap equity companies selling off a little bit. >> we have so many traders just getting hurt over the last year, really. everyone is looking at the 10% correction. >> the pain trading is still up. no doubt about it. however, to get higher from here on u.s. equities, we will have to be facing significantly better u.s. economic data. >> what is the distinction between short-term and long-term economic eta? where do you see that turning? jobs report on friday, that is the 800 pound gorilla in the room. looking back over the last several days, globally we have had ok economic data. >> eight-month lows?

is happeningt what in europe. onhad much better inflation durable goods orders in the u.s.. overall, actually, the shift in the near term has been better. >> does that mean you are taking a look at today? equities?. large-cap >> today is all about the ukraine. what happens in the ukraine is that it will confirm my bias towards u.s. equities. the risk reward is something pretty obvious. >> is that more of a safety trade? their you concerned about exposure to eastern europe? >> i am not concerned about their exposure to eastern europe, because a lot of the exposure for these companies, large-cap u.s., basically from europe, major trading partners, canada and mexico -- what happens is the ukraine, in dayly we are still

one, but so far it has been contained. >> i wanted to get your thoughts on the other assets moving in the 10 year. >> what is interesting in the 10 year is conversant to what i was thinking. ok, there is his bid to the 10 year, which is a safety asset, but how much of it are we really going to get? the user is down, that is not that much. >> all right, jeremy. back on the markets again in 30 minutes. ♪

>> live from pier three, welcome to "bloomberg west" where we covered the future of business. pinterest.an behind he rarely speaks to the press but i said down with an elusive interview. the latest on business and what he wants to teach the next generation of entrepreneurs. google no longer has to search for a private jet paradise. construction has started at a private