♪ >> welcome to "lunch money," where we tied together the best stories, interviews, and video and business news. i am matt miller, in for adam johnson. innovation, the final frontier? elon musk takes his space mission to washington. vintage steve ballmer, the former microsoft ceo shares his patented doozy as him with students at oxford. this is a bloomberg exclusive. politics, have you listened to harry reid lately? he is mad as hell and he will not take it anymore. a dish, a deal that shakes up the tv business. luxury, apple plus for our eight equals killer branding or

marketing mistake? kicking it off with what everyone is talking about, another day in ukraine. >> a number of forces have been to floyd in crimea. we cannot figure out why russian boots are on ukrainian ground. it is crystal clear that it was ordered personally by president putin. >> the ukrainian prime minister there. russia, defying demands from ukraine and the west to loosen its grip on crimea. troops have been on the ground in the region since the weekend. the ukrainian prime minister has had enough. >> this is ukrainian territory. russia wants to grab control of crimea. i would deny them. we will do our best in order to regain control of the ukrainian territory.

>> it is more of the same in paris, where the u.s. secretary of state, john kerry, is meeting with his russian counterpart. on top of crimea, the obama administration along with the european union is holding over russia the threat of economic sanctions. >> if russia does not choose to de-escalate, if they are not willing to work to record with the government of the ukraine as we hope they will be, then our partners will have absolutely no choice but to to join us, to continue to expand upon the steps we have taken in recent days in order to isolate russia politically, diplomatically, and

economically. >> a huge factor in this conflict as well, russia supplies the fuel to both the european union, meaning it is one more weapon that russia can use. >> on independence square, the speaker calls on men in the crowd to sign up for the ukrainian army to take on russian forces in crimea. the expectation here is that the next front may not involve troops at all. ukraine relies on russia for most of its energy, using most of that natural gas to fuel their industry and heat homes. the fear is that that reliance will be russia's next weapon. russia could punish ukraine by cutting off the gas altogether. >> they are considering it. >> if russia turns off the gas, what would you do? >> we will try to turn the tap it another way. russia cannot the refusing gas -- cannot use gas as a weapon. >> back on independence square they know a thing or two about dealing with the cold. they have been out there for more than three months.

they also know about gas shortages. russia has turned off ukraine's gas twice in the last decade. not everyone is convinced that the russians are up for that fight. >> ukrainians and russians? for how long will russia be able to be in this situation? it all goes through ukraine. what will happen? what will happen to their economy? >> night falls. they are celebrating in key avenue. back in their homes, the gas is still flowing. the next front is still an invisible threat. bloomberg, kiev. >> one man who knows how russia and president pollutant play the game is the former president of georgia. mikheil saakashvili. georgia and

russia were locked in a crisis of their own in 2008. he told us that this conflict is very much like the other. >> i remember american companies were there. ukraine was coming to me saying that there was an order of gas. once it had happened, russia had lost the biggest buyer of their gas in europe. it is like a rack and kuwait. the energy plan for europe was huge. >> i think that even he would have trouble pronouncing his name. thoughts on vladimir putin? >> this guy is dangerous. the reality is that this is going to continue. these tactics are very simple. grab the territory, lay down somewhere else, another crisis moves somewhere, everyone forgets it. like in george's case. it might signify something fast for putin's adventures, it depends.

it is all about whether it is too messy or if it is subtitled for the less control. >> ukraine said, back when the government took over, that they needed $35 billion to avoid default. the u.s. pledged $1 billion in loan guarantees. the european union appears to be pledging $15 billion in loans. 16 down, 19 to go. usually the senate majority leader lays into industrialists for the second time in a week. elon musk has something to say to congress. he actually does have innovation. plus, clever advertising from a swedish shampoo company leaving subway commuters in all. when the train arrives and the model pair reacts.

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>> this is "lunch money," on bloomberg television. in innovation today we are going back to the future with rockets, drones, and hoverboards. let's start with the rockets. elon musk, founder and chairman of spacex, in washington today, he wants of the spate that she wants a piece of the space launch market five. the work is currently being done by the united launch alliance. he says that a little competition could save taxpayers more than $1 billion each year. >> the other agencies are simply paying too high of a price for launch. the impact was protectable and it has been borne out. lunch innovation stagnated, competition has been stifled, prices have risen to levels that the journal calls unsustainable.

>> currently the russian spacecraft, so use, is the only way to get to the space station. elon musk is trying to change that. here he is with rachel crane. >> reports say that of the $70 million that the russians are offering to go to the space station, they have us over a barrel. not a good place to be. we want to restore the american ability to do so as soon as possible. i dig it will be a better product for less money. it is just kind of embarrassing that we have to take these from the russians. >> something of little less ambitious than a rocket to space, but cool nonetheless, the $1200 drone that takes pictures, shoes video, and can fly

autopilot, it has become the new plaything of technology junkies, but what are the risks? jon erlichman went there to test it out. >> there is always someone catching a wave, but now they are capturing footage to. this is the future of what sports videos will look like. drones crewing -- cruising high above the surf. right now the phantom to vision appears to be that drone of choice among technology enthusiasts, capturing these shots on a trip to the caribbean. >> it comes pretty much prebuilt. it is ready to fly, you go buy everything in the box, take it out, put the batteries in. >> along with the camera, you can build pictures by attaching a smartphone to the remote control. it can also fly autopilot using gps. it is not cheap, but it will not rate the bank. >> who is using these devices?

>> all kinds of people. hobbyists, rational developers, real estate. >> flying one of these things is not always go according to plan. this and easiest recently flew his device on long island, went out over the atlantic ocean, and never came back. they are still the legal for commercial use. >> as i think about more of these devices being in the air or at the beach, it is hard not to think about the risks associated with that. >> we work closely with the faa to make sure that our devices are safe. >> they did project revenue for 2013 of 100 31 million dollars. two years ago this company had 300 employees, now they have 1500. while we were out flying, this guy was flying one as well. >> just like that. >> awesome. >> when i was a kid we call those mode control helicopters.

if you want to go into the future, you might have to go back to the future. maybe you have seen this video today, it has caught on like wildfire. [applause] [cheering] >> i cannot believe how well it works. i did not think it would be that smooth. in the movies it always looked awkward. once i got on it, it was a natural. >> the hoverboards. two videos posted on youtube, becoming the latest viral hoax. celebrities like billy zane and, as you saw, tony hawk, all in on the joke. the company, obviously started by m.i.t. students, has a real website, but they have yet to a seed to a

response to an interview. our investigative team has figured it out. spoiler alert, this is terrell owens. his shoulders looked normal there, and this is him on the hoverboards. padded shoulders, like he was back in texas stadium. or wearing a hoist a brace. the shoulders of all the celebrities and the cameos look like they are wearing hoist braces. bummer. but how awesome would that be? still to come, a bloomberg exclusive. the former microsoft ceo from the oxford union. his advice for building a successful technology business.

someone else who knows what it takes to succeed, ben horowitz. all of that ahead in our technology segment. ♪

>> just one month after stepping down as the ceo of microsoft, steve ballmer shares his thoughts on building a tech business. this comes to us as part of a special series, bloomberg presents the oxford series debates. >> a few principles i would highlight for this audience in terms of business success, the first one is probably not one that gets talked about as much as it should, that ideas do matter. you really do need a powerful idea to have a business that is going to succeed. whether it is a very small scale or large scale, you need an idea that is significant.

in the world today it is easy to read about start up this, startup that, start of the other thing. basically you can start businesses now without an idea. that is interesting. i would say that the quality of most of the ideas i hear about anyway are not that powerful. people spend too little time trying to get the right idea. getting the right idea is really hard. you have to work at it. you might have to fail at it or modify it. you might have to give it up and try another idea. but you have got to decide how to think about the idea. anyone here seen this older movie, called "thelma and louise? it is a story between susan sarandon and geena davis.

these women seemed normal at the start of the movie and by the end they are driving their car off a cliff. i won't fill in the details, but it was brad pitt's first movie for those of you who care. you can say that they really ran fast and that. in the movie they were running fast, but i'm not sure i would like to follow them off the cliff. >> known for his animated delivery, he did not disappoint, even after a powerpoint fail. >> i am upset? i will say -- i am nervous. a big speech for me. one of the biggest of my life, in fact. click. i was supposed to ask. i did not think that this powerpoint thing was going to work very well. i hope that younger eyes are better than mine. i cannot read it. we may skip slides. >> ben horowitz has his finger on the pulse of almost every tech start up that is cashed in. he just came out with a new book.

the hard thing about hard things, building a business when there are no easy answers. cory johnson sat down with horowitz and asked if his writing was leading to better ideas. >> people often feel like they know me before they meet me. i am sure that you probably get that as well. if they see you, they express themselves, they put themselves out there. they think they know that guy and come to see them. i have had this experience myself. the third time i met my friend i was like -- hey, i already know you. he was like -- that's great, but you know me already. these kinds of things are very helpful in building a relationship. >> that is why it is helpful to be real. >> that is what his heart in writing. that is the thing that people

appreciate about the blog. it is the honest side of it. i am not trying to put out a spin, not trying to cover up all the things i did wrong. just trying to say that this is what happened. >> what are the commonalities of entrepreneurs of this era that is different from the last one? strengths or weaknesses? >> i think that because the gimmicks started this year, in a lot of ways they are younger. which is a strength and weakness. the strength of being young is that you do not have the old paradigm in your head, so it is easy to break it. a big deal in technology

companies and in innovation. the disadvantage is, you know, you are young. there is a lot of stuff that you do not know. there is a lot of wisdom you don't have. that can lead to doing things that have very dangerous long-term consequences. both for yourself and for the company. >> you can watch the entire interview on bloomberg.com/tv, or on our award-winning bloomberg tablet app, bloomberg tv plus. harry reid is at it again. what got him so angry about politics? and when you think about bentley, you probably do not think about the i simple. the ceo is really trying to convince you about this. we will hear from him, coming up. and this is the life of luxury. to new york artists and a life-size hamster wheel, trying to show how people work together and need to. if one guy stops, the other must as well. they say they will live on and in the wheel for the next 10 days. ♪

>> this is "lunch money. oh streaming live on bloomberg.com, on bloomberg tv, we are on your tablet, your smart phone, pretty much everywhere you could possibly look. today, moving pictures, where the video is the story. china says they will declare war on smog, telling legislators that pollution is a warning that inefficient and blind development is one of the items addressed in the annual meeting of legislators. officials also tagged economic growth and 7.5% this year is what they are looking at, same as last year. in the years since you go shauna's died, images of him are everywhere in caracas. his portrait as seen on buildings throughout the capital

and a recording of him singing the national anthem is still played daily on television. people are expected to flock to the -- to his muzzle he him today to commemorate the one-year anniversary of the dictators death. a cold rain and cold temperatures did not stop a new orleans mardi gras celebration. they traveled down st. charles avenue and the parade route. tens of thousands of people filled the french quarter later, despite temperatures in the 30's, with the wind chill that made it feel even colder. probably not a lot of beads given out this year. in politics, have you been listening to harry reid lately? i may be crazy, but i think that something is bothering the senate majority leader. >> the koch brothers are influencing the political process for their own benefit. spending hundreds of millions of

dollars telling americans that obama care is bad for them. these two brothers are trying to buy america. >> charles and david coke, the brothers indeed, billionaire industrialists who have clearly gotten under the majority leader's skin, as well as that of many on the left. they are spending tens of millions of dollars to convince americans to vote harry reid and his democratic friends out of congress. their money is going to the super pack known as americans or prosperity. here is one of its ads. >> i was shocked when i got the notice that my health-care policy was canceled. kay hagan told us that if you like your insurance plan and doctors, you can keep them.

it just was not true. i now have a temporary policy that offers me 20% more. next year under obamacare my costs go up another 45 hundred dollars. kay hagan just does not get it. >> tell kay hagan that obamacare hurts north carolina. >> so, she can keep it, she has to pay another five grand. you can understand why any majority leader would want to defend obamacare and the party platform, but harry reid took it further, going on the offensive last week and again yesterday. >> the koch brothers are spending hundreds of millions of dollars telling americans that obamacare is bad for you. it is easy to do if you have no conscience and are willing to live, like they are. it seems my republican colleagues also believe in a system that benefits billionaires at the expense of a middle class. the koch brothers are willing to invest billions to buy that american dream. they may not always funnel money through americans for prosperity , but they funnel money into all kinds of organizations to do the same thing that they are doing. they are trying to buy america.

once again, republicans are all in it to protect their billionaire friends. not only have they come forward to defend them personally, they have again and again defended this radical agenda. and it is radical. at least from the middle-class perspective. >> wonder if anyone is listening, right? looks like an empty room. they be the koch brothers were. their spokesmen and go-to guy for grafting push back against " what is clear, there is a big difference between division of harry reid and the koch brothers as it relates to the future direction of this country. we are disappointed that senator reed is attacking private citizens rather than the problems facing this nation." it is no wonder that americans have lost face -- lost faith in congress. politics does not happen in a vacuum.

midterm elections are around the corner and it is obvious the koch brothers know they have to spend to win. perhaps it is a message that democratic fundraisers need to step it up. or maybe he just really does not like coke. brothers, that is. coming up, the future of streaming television, breaking down the ditch disney deal, and what does it mean for consumers? after this break. you cannot beat an icon, so lamborghini created another one. coming up. ♪

>> this is lunch money," on bloomberg television. we are on your tablet and your smart phone. we are the only financial device -- financial network program that streams live in your mobile devices. dish network just made huge strides, striking a major deal

with disney to open the floodgates for content distribution online. tom keene sat down with a roundtable of media pros. >> no one has defined it yet, but there is a line in the press release that says they have agreed to a personal subscription service. separately bloomberg reported yesterday that there was a $20 to $30 per month price point that goes with this. we believe that you will pay per person for television. cori signs up for multichannel services, he gets one stream for himself. he can watch it on his ipad or his hbo. -- or his tv. >> you wrote an inflammatory note -- tell me if i am wrong, that this is so let -- revolutionary, it changes distribution, dish being taken out by verizon. that stuns me.

>> the strategies are becoming similar. verizon limited their pay-tv -- pay-tv business to one billion households. they really want to exploit what is going on in the u.s. and this is a great solution for them. they have 14 million customers already. they have low costs, they have a lot of spectrum the verizon needs in order to deliver these over-the-top services and now they have this service organization. >> you know content. how does content as king fold into this debate? >> i always listened to these guys when i was running these companies, they had it right. once you enter the multichannel space, the customer was owned by the distributor. in every context. and now disney is crawling back in and saying, as rich as alluded to, we will revisit that

relationship. this is not the dish customer once you pay me eight dollars for the suite of espn services. i want streaming. what you have done is you have thrown, to that comment, thrown the customer out into the ether. >> what if the customer does not want to go out into the ether? >> you will still live on the couch. but once he goes out that door in the morning, he is in the ether. >> turning to the more fun topic of content here, comedy central has a new series that looks pretty funny. it is called review. it is about this know it all host who reviews life experiences. >> you can add our call to the list of things i am not addicted to. maybe i am invulnerable to addiction. what i am, superhero? ok, i have tried cocaine, cigarettes, alcohol, did not get addicted to any of those.

there is one more thing i need to drive. cocaine. >> is he a congressman? writer, producer, star, andy daly, spoke with betty liu. >> he will do anything that his viewers ask him to do. does not matter what it is. >> i was watching some of the previews. i mean you -- i mean, forrest mcmeel, experienced what it was like to be a racist, for instance? >> that is right. >> what are some of your favorites, coming up? >> road rage. forrest goes out into the world and, you know, he tells us up front that driving usually makes them so relaxed, how will he find a way to get mad? he figures out a way to do it. he has a real confrontation. oh, we are watching it now. there it is.

that is the hilarious jason manziel kiss, who challenges him to a smash off. >> how did this come about? >> it was a series of australia for two seasons, it was a cult hit down there. a very dark and disturbing comedy down in australia. comedy central saw it, they sent the australian version over to me and i said yes, i am the only person who can do this. the only one and only person in the world who can adapt it for america. >> what did you have to remember as you adapted it? >> their version, you do not know if the people that their main characters are interacting with are real or not, they did it so realistically. the camera hangs back realistically. the camera is never in front of him. it always is in front of him. >> to make it really realistic. >> that was something that we hung onto all the time.

nothing outlandish. no crazy coincidences. it just feels real. >> coming up, bentley and the potent blend of speed and luxury. we will give you the details from the geneva auto show. apple, ferrari, a match made in heaven? or a brand nightmare? also, police cars. ♪

>> in luxury today, high-end automakers are going for high-tech and high speed. we will start with for robbery, they teamed up with apple for a match made in luxury heaven. >> top-end phones, the other makes luxury cars. they are two of the world's most sought after brands. now they are working together. apple and ferrari.

putting their devices on four wheels, available in the new ferrari, just launched at the geneva motor show. >> this is the sort of technologic -- in other words to give to our clients what they drive, the possibility to be connected. >> they can easily get directions, make calls, listen to music. controlled by voice or by using the steering wheel, it is up to the driver. how wise a move is partnering with harare? the brand is so exclusive it is cutting the number of names -- the number of cars it makes. apple is savvy, partnering with other highbrow brands, mercedes and volvo. by fitting in with the likes of ferrari and mercedes, apple looks like it is sending a message. in the mobile world, it wants to maintain its luxury status.

>> bentley has unveiled its latest sports car at the motor show. a potent blend of speed and luxury, the company's ceo gave bloomberg a personal tour of the car industry week of what is to come. >> i am the ceo and chairman of bentley motors. that beautiful car right in front of me is the new gt three. it is the fastest bentley ever. this year the convertible goes from zero to 100 kilometers per hour in just 4.4 seconds. if you follow me, this is unique to bentley cars here. it is more than just the future line of a car.

we have had a record year. we sold 110,000 cars, more than every before in our 95 year history. we have confidence to add something in the future. a car that we have already done very detailed work on. it will reach the markets in 2016. building the real first luxury suv in the markets. >> i will admit that having driven it last year, it is hands-down the greatest gt i have ever driven. i cannot talk about luxury cars without talking about lamborghini. their latest road legal rocket has been unveiled in geneva as well.

a successor to the guy ardo, boasting faster deceleration ports. >> lamborghini does not do subtle or slow for that matter. their new supercar hews to the company's philosophy, but low brass. this is the latest model, the hurricane. no points for guessing what that means in italian. it will do zero to 100 in a blistering 2.2 seconds. but the development director of lamborghini says that it is not all about the stats, it is about the feel. >> it means to have backup acceleration, better braking speeds, better maximum speeds. there is a daily usability to the car.

>> the hurricane follows in this -- footsteps of the previously unheard of sales that were achieved by the italian carmaker. the successor also packs the v 10 engine, going alongside some high-tech, onboard computing. lamborghini is looking to broaden its appeal. they want the car's power to be available even to sunday drivers >> it is a rocket that everyone can handle and manage in an easy way. >> bloomberg, geneva motor show. >> all right, time to go for a ride. here is today's mystery meat. >> go look at travis the jeff gordon. [screaming]

and it is 56 the hour. bloomberg television is on the market. here is where stocks ended the trading day. it was relatively mixed. we were up 1/10 of a percent.

the dow jones was down slightly. it was a change on the day. the s&p closed at a record. there was weaker than estimated data on payroll. nonmanufacturing items dropped to a four-year low. telecom was the biggest loser. what is calling for stocks to rise about four percent this year. globals that there is a freeze with investors. we heard about this this morning on "in the loop." >> it is these queasy play. -- please play. we know that is the game. extended a take away that investment option, will he might have called yields in the past, the federal reserve is taking that away and forcing investors into more risk oriented assets.

you are saying that stocks are going to continue to rally. >> one way to look at it is that it is liquidity driven. they are reducing be more secure risk-averse options. for thegoing to go on foreseeable future. what risk portfolio becomes ?ppropriate a company that can demonstrate pricing power will become one of the darlings of the market. >> they will be where? >> is one of the areas that we like. energy would be a name in terms of the sector play. energy independent north america, there are good rings there. we are looking at the united states of our national gas reserves. the follow-up will be significant. manufacturing is improving.

there are areas where the united states is very competitive. the united states is a big economy. it does not trade a lot compared to hong kong or south korea. it is more inward focused. >> we are a consuming economy. act about the outlook for treasuries this year. take a listen. >> interest rates are creeping up. we are looking at a 10 year government bonds being around 3.4%. there will be a melt up in rates. you are looking in that environment. a lot of investors aren't used to this market. we think we are in the waning days. as interest rates are eroding those rates of return, you are zero. >> lets the were treasuries ended today. in the last hour, you have seen yields up higher. overall, it was a tight range for the market.

they are not taking up very big additions. was a little rush into the treasury market. in terms of commodities, you have to look at oil here. moving on u.s. data, u.s. inventory is climbing for the seventh straight week. there's some weakness in the, the. refining capacity is down. they are transitioning from winter into spring. that affects the energy stocks. or on the markets, i'm alex feel. ♪