>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> phone fight. at&t and t-mobile are in a price war. you could be the old met winner. >> tarnished legacy? from poor returns to a public this with his former ceo, is taken a serious beating. >> website on the fast track. the owner of cars.com wants to

sell, but it will not come cheap. you will need to come up with about $3 billion. good morning everybody. i'm air chapter. >> and i am a stephanie ruhle. cars.com -- everybody wants to cash in. >> why not? >> top business stories from around the world -- a merger of the world's largest banana company. has agreed tos merge with an irish produce producer. chiquita shareholders will have controlling interest. and a pizza chain that erik schatzker loves -- you know it. they have filed for bankruptcy. sbarro -- it is the second time in the last three years they have filed for bankruptcy. they will close more than 150 stores. deadliest fraternity in

the u.s. has decided to ban pledging. the month-long induction period for new members -- at least 10 deaths have been linked to hazing at events held at sigma alpha up salon. college leaders called it a milestone. i say, you're finally doing it now? >> long overdue. does anyone eat at sbarro anymore? >> in airports. >> poor people they are. since then three days malaysian airlines flight disappeared en route to beijing. still no one has any idea what happened. an oil slick that initially seemed like a clue turned out to come from a boat. an object thought to be a liferaft turned out to be moss. reportingships are debris near hong kong. investigators are trying to determine if this was an act of terrorism. richard falkenrath is here.

he is a former white house security and visor. he is a commissioner for county terrorism. he is now a principal at the chertoff group. i guess we need to start with this. you are an expert in counterterrorism. that is what you did at the new york city police department. does the situation to your i have the hallmark of terrorist acts? >> is suspicious. it fits the pattern. you wait for the fact to speak for themselves. there are more than one possibilities to explain this. in general, you do not leap to the most extreme or most exotic right away. one of the mottos i have had is that when you hear the hoofs, think of horses and not zebras. you do not reach that conclusion until you have data. >> investigators are combing the season and have not to date found anything. how unusual is that for a plane to this appear? -- disappear.

>> very uncommon. planes are the safest when they are cruising. it has to be at altitude. it has to be in an area with no air traffic control coverage and limited radar. it has to be over water. it does happen from time to time. there is thego, catastrophic failure of the air france over the south atlantic. that took two years to recover the black box. >> the difference, if i recall correctly, was that that was in a store. this was clear skies. >> making this even more suspicious. the palate know they were entering an area of bad weather. this does look like clear sailing. >> people have been reading about these two suspicious passports. two stolen passports which were used by other people, not the original holders, to board this plane.

what i have been hearing is that one person is not unusual. two people using stolen passports is. >> is two data points in conjunction. they are extra suspicious. the tickets were bought from the same travel agent. that is possibly passport fraud. they also bought one-way tickets to europe. that is also suspicious. they traveled to beijing. even if you could get from malaysia to beijing, the odds that you could enter a european country on a stolen passport is zero. we can count on them to catch in with interpol. how the koala loan for authorities failed to do that is a major lapse. it is inexcusable. >> let's work for the moment with this theory.

wouldn't somebody have claimed responsibility? >> not these days. in the 1980's, there was a territorial claim that someone was trying to advance terrorism. you hijack a plane and say free these prisoners --whatever it may be. these days, it has a whole different complexion. they don't always claim credit. the reason is that sometimes they are trying to instill fear. sometimes they are afraid of retaliation. sometimes they are lone wolves. they died in the incident. who knows what happened here. in this day and age, terrorist acts for which there is no claim of first possibility is not unusual. only twoe possibilities an act of terrorism or some kind of catastrophic failure of the plane? mechanical failure? >> there's a third that would have been ruled out, which is a shootdown by air to air missile. that has happened before.

in 1983, the soviet union shot down a korean jet. we would know by now if that happened. it was some sort of catastrophic sudden failure in flight at altitude, which disrupted the electrical system and made it impossible for the pilot communicate with the ground -- it that we still simms know so little about the planes track and path? the way aircraft are tracked over international waters is that the aircraft has to communicate by radio to ground stations. they have to transmit a signal. in order to transmit a signal, they need electrical power. if you destroy that system, it cannot transmit the signal. unless there was dense radar coverage in the area -- >> there was not. >> if the plane stops communicating with the ground, you cannot tell where it is. . >> they give very much. a principal at the chertoff group and former deputy commissioner at the new york police department for counterterrorism.

also, a white house security advisor. >> we were talking by your favorite pizzeria, now we're talking by your favorite shop where you get your weekend stakes. it has been a tough quarter for some of the retailers. we're getting a closer look at urban outfitters. the brand wants to expand into a new market, activewear. it wants products for yogis and skaters and fitness fanatics. let's bring in julie hyman, with a look at without walls, the new initiative. to me, this feels like they are jumping the shark. when i think about urban outfitters, it is the store where i buy t-shirts and rubiks cubes. i do not want to run the new york city marathon. >> they had an opening event, kickoff at the 14th street store. they are only carrying this and five stores. there is this hipster running club with a women run in full

makeup and they are all decked out. people writing on bikes who are competing at this kickoff. we cannot make the judgment for the market, but there are people here who are adopting that. not only that, but there is a new trend that one consultant i talked to called ath-leisure. not to sell out stephanie ruhle -- you roll and in full workout clothes. >> i am never working out. are using this as the regular lifestyle closing. -- clothing. >> modern-day sweatsuit. >> exactly. they have devoted square feet to it. they also have yoga wear and track where. a good-sized search section, where they are at bathing suits. >> they have always been a

lifestyle brand. >> that is what they're going for. is he going to help the overall brand? it is very early. it is only in five stores. they may triple that by the end of the year. even so, it will not be a big part of the brand. they have been trying to get into it. i did talk to an analyst who said that maybe they are incubating. maybe you could see if a few people -- they spin it off into a separate concept. >> three people is leisure wear. definitely leisure wear. are we seeing other people get into the space? --ce lululemon struggles >> you have under armour. cap has two brands. athleta, which are both participating. the market is still wide open. it is growing more quickly than the rest of apparel.

we saw activewear sales up nine percent last year. overall apparel up two percent. we're seeing it outpaced. if everyone is going to come to work and change, then you need a lot of choices. >> julie hyman calling me out. a juicynot be wearing coutu or sweatsuit anytime, but it is true. h-leiusre.fan of -- at ath-leisure. >> my doorman asked me about my commitment to fitness -- thank you to julie hyman. when we come back, just how deep will the rye list carriers cut prices to get your business? we will have the next. also, pimco's pr problem is only getting bigger. bill gross his fight with the former ceo is not helping. this is "market makers."

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>> you're watching "market makers." it feels like a good, old-fashioned price war. at&t versus t-mobile. these two wireless carriers keep trying to outdo one another. over the weekend, at&t cut it's a subscription charges, one day after t-mobile added more data to one of its most popular plans. our next guest says this is not a christ work, at least not yet. craig moffett -- >> could be that. >> it looks like a price war. >> collett half a price war. certainly t-mobile has declared war on everyone else. you are part is, if at&t or verizon, you're a

prisoner of your own success. this is not a businesslike semiconductors, were prices fly to the bottle. em. the cost of repricing your base is so high that instead you play run the margin with pricing. i would not expect them to cut prices radically. you certainly have seen t-mobile do it. >> why do we think it is a price war? >> you have seen the range of pricing activity really sorry. you are seeing available plan coming down. mostly you're seeing the carrier saying that these incremental data charges that used to be the basis of how they were going to continue to raise prices are starting to be given away more and more. in that sense, you are certainly seeing the pace of pricing activity picking up. you're not seeing a race to the bottom in pricing the way you would in some industries. the base of these carriers provide the buffer. >> ok, so i'm trying to draw some conclusions.

is that to say that at&t, even though we have seen the make these moves on margin, is not in any way impairing its revenue stream that? >> there are a couple of things you should expect if your investor. t-mobile is taking hand over fist. it is so hard for at&t and verizon to respond. you might to some downward pressure on the growth rate of revenue per user at at&t and verizon. we will really see a slower growth. they will have to get used to will keephat t-mobile taking subscribers, just because it is so hard for them to respond. and the factwth that everybody has service at this point, five years ago, there were so many new customers that did not even have service for carriers. >> this used to be a fast growth in history. here is a brainteaser. that thele guess wireless industry is a faster revenue growth business than the good old-fashioned pay-tv

industry. pay-tv has faster revenue industry than wireless. one has pricing power and one does not. pay-tv is not growing subscribers. the tv subscribers are shrinking. at least they have pricing power. the wireless is seeing pricing flat and slow growth of unit. >> no pricing power and their only hope to increase users is waiting for erik? >> it is a battle for market share. that is what you would expect when -- t-mobile is taking the chair. >> t-mobile can make money. >> i am not sure about that. analysis, t-mobile is making something like a $700 value per subscriber that it acquires. before the cost of acquisition. about $500 after you factor in the early termination cost. it is clearly positive. >> this should appear in the bottom line. >> this will make money for

them. bryson just bought itself from votafone. >> they do spot himself. --just bought themselves. is willing to do that business at a value of $500. that is a huge downer from: to street. >> we keep talking about at&t and t-mobile. but talk about verizon and sprint. does not appear to be doing anything. >> verizon is typically above it all in the sense of their network is the best. they compete on the basis of equality offering. i think they too will see their growth hit. they probably are the best position to be able to handle the stress. the one that is in the most difficult spot is sprint. the sprint network is still in progress.

their pricing is very high. it is right on top of at&t and verizon. their network does not support that kind of pricing. what do you do if your sprint? they are hemorrhaging subscribers again. >> today by t-mobile? >> the government has said that will not happen. i will go to washington this week and hear them make their case. it is not like the government does not understand though reasons why. i think realistically, that prospect is dead. >> do you think the ad spend make sense? it is just enormous. >> is the biggest ad spending industry in the world. it is a huge amount of money. i think it does. you are fighting for market share. the question is not are you going to convince anybody to the smartphone. will you convince them to get yours? >> are you affected by wireless

ads, erik? the set input to? >> it does. it makes me think about it. >> t-mobile's offer is much cheaper than everybody else's. you have to get the word out. you have to let people know what is out there. the advertising does make a difference. >> a year ago, we were on the clock when sprint bought clearwire. they were supposed to upgrade their network at a much faster pace. what when wrong? >> i do not know. people on wall street are just impatient. to come aeady jumped when this network is finished, it will be what they said will be the best network in the world. we are years away from being the best network in the world. what is right now is what tivo will characterize it as. it is a spectrum waiting to happen. it is not a network yet. >> as far as the price

wars, it is a liability. >> they may have no choice but to cut prices. >> is the take away that it is great to be a wireless customer? >> it is getting better. if you are afraid that the price of these data plans and using more data was eventually going to bury you. it is just not playing out. the carriers are giving away those future price increases. will they have to start cutting prices again? probably not verizon and at&t. certainly, yes, t-mobile. and sprint. >> that breaks my heart. >> craig moffett of moffett nathanson. >> he is impatient like the rest of wall street. when we come back, we are talking about aerio. a judge has blocked their internet tv service in two cities. we will find out what is next. you are watching bloomberg tv. we are streaming live on your

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passinge approaching 26 hour. his temper on the markets. this is all about ebay. >> do you use it? >> once the bloom in. much.ot go there i once bought my daughter a teddy bear. it was out of production. it is all about carl icahn. he released an open letter to ebay shareholders saying that he has newly uncovered evidence that demonstrates the ceo's inexcusable incompetence. i am reading it right now and i cannot see what is new. mostly he is reiterating his allegations that donohoe mismanaged the sale of skype and cost shareholders $4 billion.

>> he has taken it too far. he has gone crazy. then you look at his returns and he crosses it. you have to say, yes, you're right. we will be back with more. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. you are watching bloomberg television. gross is one of the most successful investors in the 21st century. that is why he is called the bonking. he has had some poor returns. feud that is threatening to jeopardize his legacy. he said that el-erian was trying to undermine him. he accused a reporter of being wrapped around el-erian's

charming anger. -- finger. let's bring in a bloomberg contributing editor. >> wearing smart new glasses. >> i have not had an opportunity to look at mohammed's hand. what is going on here? you read the story in reuters and you think bill has gone off the deep end. think finding a successor for bill gross has been a decades long endeavor for many people. not quite like finding a successor at berkshire hathaway. it has been in intrigue for a long time. when you have somebody that was that accomplished and that successful, to find a successor is not easy. especially when he controls so much of the corporation. mohamed mom it a lot -- el-erian. then you have a major falling

out. that makes investors very nervous. people get angry about how they are perceived in the media. >> connect to you how i feel? two weeks ago, when this began, i felt that for bill gross. he is this giant guy. you cannot necessarily expect him to be on his best behavior. if you took a snapshot of george soros, the way these guys have made the money they have -- >> demo, bill ackman -- >> not by being friendly. you know that going in. two weeks ago, i understood this. since then, bill continues to put us up in the media. what is he doing? why doesn't he pulled back? he does not need to put himself out there. he can say i am bill gross, look at the business i made. >> or i said what i'm going to say and i'm moving on. it is pr 101. i never understand why these

high-powered successful businessman make a mistake when it comes to pr 101. this is clearly an opportunity where less is more and he should have stopped talking about it. let their statements stand. even though it may or may not have been true, there was an article that was very good in the wall street journal. i begin to show that there was more intrigue to the split. >> who cares if it was true? >> that is not true. consultants, the mandarins of the pension fund industry -- >> they're looking for something to write about. >> they advise on asset allocations. they're telling them, do i invest with pimco or blackrock? if they get turned off by this, if they believe that what is going on at pimco undermined gross' or the firm's ability to deliver returns --

>> if he is delivering great returns, they will not care. >> one issue is that there does need to be a successor to bill gross. when you have somebody of mel -- mohamed el-erian's caliber, someone of that caliber --than they have a falling out, that bothers people. that makes tubal morass. number two, the bond market is headed for a rocky period. when quantitative easing is starting to end, when they're pulling back that demand from the bond market, prices have one place to go. that is down. if you are a big on the master, how do you mitigate those gold? >> i agree with you all heartedly. >> we found something we can agree on. it is the result of the potential for bad results that have people spooked. bill grossp of,

probably will not live forever. >> if the bond market is headed for such a bad road, stop having interviews with everybody and their brother and go back to work. because bill wants to persuade the world that he has figured out how to continue being the bond market. he has the best record in the bond market all through the bull market treasuries. >> with help from the fed. major-league help from the fed. now he has to figure that out. i agree. >> he wants people to agree that he has the secret. >> why doesn't he keep it a sicker? -- secret? >> people do a lot of advertising. >> alliance owns pimco. they should tell him to tone it down. he should know to tone it down.

he should know to figure that out. whatever reason, people get their egos involved and they want tit for tat. >> these are difficult times. >> i would think so. >> hold on, as far as sympathy -- >> i just try to explain his behavior. >> it is tough. >> he will continue to be well paid. how he navigates, will be very telling. it is not a time for anybody to focus solely on the bond market. been in a very special position, running pimco. he could run that place anyway he wants. if you want to live in newport beach, california and he went to be in the investment world, that is one of the only places you can go to work. . >> no one is going to cry tears for bill gross. he has a wonderful life and a wonderful job in a wonderful business. he just has to figure out how to get a successor in there to navigate. >> sorry your bosses mean to

sunday's. >> stop talking to the media. >> we agree. your glasses look great. >> bill:, bloomberg contributing editor. >> star of the year. coming up next, the fate of internet tv service aereo may be up to the supreme court. arguments are separate next month. we will have that and more when we return. ♪

>> movie producer michael simons china and a new studio venture to invest more than $1 billion over the next five years, in addition to producing and disturbing films for global markets each year. cristina alesci is here with more on this new venture. christina, financing is potentially a very lucrative business.

the movie studios know that as well. how will they compete with each other? >> this is a whole new studio whichis formed by simons, has produced "happy gilmore." they are teaming up with tpg g p capital, which is the growth investing arm of a chinese investor. what they do is start a new studio. it started about two years ago. today marks the day that they secured that capital to invest. what they want to do is not compete with the major studios. the major studios are only producing big block buster hits. they have gotten so big that the only way to move the needle was two big films. what these guys are claiming to do is to go ahead and invest about $20 million to $60 million per film, take a big superstar, play to the strengths of that

superstar -- these are not passion project. there are many machines. >> hold on, money machines -- this is a dicey business. this is not their first venture into the entertainment industry. >> they have been invested in cia and in more experimentations. to your point, the thing that makes this unique -- i am skeptical with you on the financing business. they have secured distribution with the theaters. they have gotten the theaters to buy into their model. they have promised to distribute those 8-10 movies around the country. the theaters have signed on because, as these big movies are being produced, it leaves the other parts of the year and d for the theaters. these films are released around christmas and summer time. the other times of the year, there is nothing. reps, some of the biggest

actors and actors -- will there be some kind of tie-in? ♪ >> the answers are that remains unknown. you'll probably see them relevant in that. >> they know how to make hits. you mentioned a couple. >> "half-baked." >> i'm looking at the film auger feed. --massivelyd" forgettable. he is no weinstein brothers. >> you do not have to be an artist to make money. hubbardilmore" -- annie has watched that way more than "the artist." sorry, andy. [laughter] >> he does not like silent films? >> what is interesting here is

that the theaters are on board. they do not have the traditional lockup agreements that a lot of studios have with the theaters. know now, theaters want to that the content they are showing will not be shown it digitally or be shown on television. in this deal, they have the freedom. having more they're disturbing the content there and at home as well. >> think you for bringing that to us. >> an official correction. andy hubbard has only seen "happy gilmore" once. moving on, the supreme court will rule later this year on the legality of aereo, the internet tv company. per monthght dollars for digital access to the broadcast networks. those networks say they are stealing their content. unlike cable distributors like time warner, they do not pay any

retransmission fee. alliance is very concerned. they say a ruling in favor of aereo will have a chilling effect on creative people everywhere. i want to bring in the ceo of the copyright alliance and the bloomberg industry senior analyst. why are you so concerned? because is problematic it does not return any of the profits that it makes to the creators who create work that it is selling to its consumers. it is very important that our licensing systems continue as it has existed over the last decade. --fee or a to remain neutral copyright laws need to remain neutral. aereo is taking a step backwards. they developed the technologies

that is a customization rather than optimization of technology. it is not innovating at all. it is cutting craters and of the value proposition. >> is sandra right, paul? issounds as though aereo breaking this compact between the broadcaster and the content creator. once upon a time, not that long ago, i remember rabbit ears. it was broadcast and it was sent over the weights for free to your television set. the broadcasters made money from commercial revenue. >> advertising. i think what barry diller is doing -- we know that he is a disruptor. he is enjoying this whole process. he is disrupting the traditional over the air broadcast business by employing what they call a loophole in copyright law. they say it does not even exist. he is saying there is no different from hanging those ears than the simple

dish that he is housing in brooklyn. >> back to you, would you say that with aereo is doing is kind of like how we use to watch television in the early 1970's and before that? with an antenna? is doing iso devising a complicated system to deliver broadcast -- broadcast television to its subscribers. it is not at all like putting a set of rabbit ears on a tv set to receive over the air broadcast. what is important here is that the system that exists under copyright law is technology neutral. it is supposed to advance the development of new technologies and advance the development of new create work. aereo is really doing opposite. it is taking us backwards.

instead of investing in new technologies that are disrupted, because they're creative and innovative, like netflix -- aereo is investing its energies in paying lawyers to find loopholes in the copyright laws and try and exploit and capitalize on those. is more like aereo interested in paying exorbitant electricity fees for the antenna farms that they have set up rather than paying me licensing fees that support the creation and distribution of creative work. >> it seems that the big issue here is that this is become a real money for them. they are, for the first time in history, the broadcasters are getting paid by the disturbing ears. -- distributors. >> who do you mean, the broadcasters? >> the tv stations of the world. people who own tv stations run the country, they are getting

paid by the cable companies and satellite companies for the right to carry that broadcast signal. that is becoming a money for the broadcast industry. the $4 billion this year. that is the revenue stream that the broadcasters are trying to preserve. >> what does this mean for other creative industries like music? calling into question the viability of what is known to the public as performance rights under copyright law. paul is right. it is an important stream of revenue to broadcasters. that has to trickle down to the creative industry as a whole. the broadcasters pay the creators of the shows. the creators of the show's pay the writers. the actors and the producers and editors and set designers and so forth. those revenues are very important to ensure that we have quality programming that

and that we develop have quality newsgathering and reporting as well. if those revenues dry up, my theory is that the quality content that we are used to getting is going to shift to different platforms. they may disappear entirely. >> quickly, would you be satisfied if aereo were to pay a percentage of its revenues or existing profits back to the content readers? -- creators? would that be fine? are many legitimate internet-based services that pay the creators of works. yes, there are licensing systems that support that. aereo could clearly take a license. >> as long as they pay the licensing fee, that is ok? >> yes, i would rather see a more efficient system from a

technology perspective, but if aereo wants to design a system that way, that is their business. >> thank you for giving us the latest. stars from the copyright alliance and our analyst paul sweeney. >> our food supply is more vulnerable. that story of coming up on "market makers." ♪

>> welcome back. i am stephanie ruhle. guess what? big banana just got bigger with chiquita's purchase of fyffe. the world largest banana company goes hand-in-hand with the growing similarity of human diets around the world. i want to bring in scarlet fu, who is here to show us by how much and the risk that it creates in this morning's off the charts.

what do we eat and where to eat it? >> if you look around the globe, we are wearing the same clothes and eating the same foods from the same crops. a scientistart from at the international center for tropical agriculture based in columbia. it shows that diets are becoming increasingly similar for the past half-century. od measured by the fo supply composition and calories. the outer blue ring is 1961. the middle ring is 1985. the smallest ring is 2009. united arab emirates around 10:00 has gone to a calorie rich diet. l, atame trend for nepa about 5:00. rwanda is about 3:00. thailand is there around 1:00. thehave westerners, westernized diet is becoming increasingly common for it is sweeping the world.

thank you, mcdonald's and kfc. >> i do not like either of those genes. >> my children do, unfortunately. we are relying on a few staple crops. we're now more vulnerable to diseases. >> soybeans, corn's. >> is this facing bananas right now? >> bananas are in the headlines today. it is a big industry. it is the most valuable fruit in the world. 15.5 million metric tons. cropsseases ravaging the today -- there is a version of bananas called gross michele, and a disease driven to extinction. we have a new version of that disease that people call banana hiv, driving that two extension. in asian and potentially latin america. >> i will try to help the situation. >> more bananas.

" market makers" is back in two minutes. ♪

>> this is "market makers," with erik schatzker and stephanie ruhle. >> the biggest thing in bananas. to buy ans poised irish company and become the largest banana business. >> sxsw used to be the place to see the next big thing like twitter. what is the festival done for us lately? >> another exit he says you cannot use electronic smoke in public places. we talked to the president of blue e-cigarettes.

>> it is 11:00 here in new york city. ,t is time for the news feed the top business stories from around the world. nine countries are trying to solve the mystery of the missing malaysian jetliner. a plane reported seeing large pieces of debris off vietnam. they say oil spotted in the water came from a ship, not a plane. when it comes to mcdonald's, americans are not loving it as much as they used to. same-store sales fell 1.4% last month, the fourth drop him a row. the chain says the sales were hurt by bad weather, the excuse were everything. mcdonald's is making a big push for breakfast is missed in the hopes of luring back some of those customers. the pizza chain of choice at the nation's malls is filing for bankruptcy protection. o has -- sbarro has filed for chapter 11.

i know you are heartbroken. >> devastated, actually. it turns out there is big money in the banana stand. chiquita is merging with an has afood farm, which market cap of a billion dollars. olivia sterns is here with more on the deal. can you say a billion box of bananas? >> a billion bucks a bananas. bananas!lion bucks of >> they merged with dole. this will give the more purchasing power. one analyst explain to me that banana producers have been under a lot of pressures from retailers, a lot of pressure with pricing. this should bring some power back to the bananas. >> what kind of pressure? >> to deliver cheaper bananas on the stand at your local store. -- it will shipping

not be domiciled in ireland, which gives corporate tax benefits. a is basically going to be 50/50 split now, between focusing on the u.s. and new york. the banana business is interesting. the food import business for the banana is really only in the western world. china and india are the biggest producers, but do not export their bananas. >> if pricing power is one of the stated objectives of this deal, because consumers have been getting bananas for cheap, might antitrust regulators not have something to say about it? >> the high court of ireland is the regulator they are most concerned about getting past. i have not seen any analysts seriously concerned. capital structure -- chiquita is highly leveraged. a lot of debt. feist has a net

cash position. it is the fourth most valuable crop, behind rice. >> name me a smoothie that does not have a banana in it. >> that is true. >> have you thought about the kale craze? there is not a smoothie without a banana in it. as investors really like it. feist shares double more than ffes sharesere -- fy double what they were a year ago. it will put chiquita in the number one spot, ahead of dole. >> big bucks and bananas. cars.com iste looking for a buyer. owned by, cars.com is a consortium of newspaper publishers. it turns out cars.com is more valuable than any newspaper they come -- they publish. >> why? >> gives stephanie the answer --

why? >> can we just say the word banana more? >> we love bananas. that is a fact. an you say a billion bucks bananas? >> banana is a funny word. cars.com is three times more than the market cap of chiquita banana. >> why? >> e-commerce sites are going through a wave of prime valuations. he saw apartments.com cell for hundred $85 million. that is the first part of classified ventures. five media companies own a state of this. was originally for prints newspapers to get into the world of online advertising. breakfast was their hedge. >> this was their hedge in the mid-to-late 1990's, when they started this. it turns out their hedge is more valuable than the actual print is missed. cars.com is so interesting

to me is, it is a microcosm of the media. look at the companies that own a stake of classified ventures, the owner of cars.com. you have companies like tribune in what used to be known as the washington post. belo. they are companies that used to publishing,er that's segmented toward better business in tv broadcasting. this online entity is sort of the old world going out. want to focus on tv broadcasting. we want to pump our money -- >> that is why they are trying to sell, even though this is worth $3 million and might be worth even more? >> or are they trying to ring at the top? if you speak to people about the market -- right? >> you know what? i would not trust newspaper publishers to describe the market. >> but bankers who advise them

might say, things are feeling frothy. at tribune, they are going to separate the business into the newspaper business and the tv business. they have been upfront in saying, we want to focus on tv. if the newspapers are sold, spun out -- that is several different media companies. newly the ship -- aybeaybe there is a.com -- m there is a dotcom, zuckerberg. could buy it who has auto trader and put the two together. there is a canadian version, canadian auto trader -- they are another possibility. >> would you rather be called cars.com or canadian auto trader? say the american version. >> stick a banana in the man.

>> might be worth it. is there any feedback in the market? might there be multiple busy -- multiple bidders? >> it is a property that has a little bit of heft to it. it is going to be more of a private equity play than a strategic play. >> how many people drive cars in this world? >> a lot. >> yet snap chat is worth more. big appetite for sexting. monthly 11 million users for cars.com. a lot more for snap chat. you can do things in the backseat of your car that you cannot on your mobile phone. >> so true. that ad for real estate -- that is a great one. >> alex sherman, with the latest on cars.com. >> billionaire mark cuban at sxsw. he is in his backyard. he might as well.

entrepreneurs and cashing in. >> if the u.s. imposes sanctions over russia's military maneuvers in ukraine, who ends up paying the price? you can find a streaming on your smart phone, tablet. watch all of our interviews live and on demand on apple tv. ♪

>> welcome back to "market makers." the president of japanese wireless company stock bank will make a case for consolidation in the u.s. mobile phone industry. they will be in washington later this week, arguing consolidations could lead to a wireless network that would be on alternative.

sprint is considering an offer for t-mobile. u.s. regulators are skeptical that would promote competition. millions tried to watch the season finale of the huge sit series -- hit series "true detective." to crash.hbo go consumers spent it on twitter, theomments ranged from angry to the profane. is or is not the father of bitcoin. he has denied a newsweek report that he created the virtual currency. bitcoin fans are showing their appreciation by donating $20,000 to a fund specifically set up for nakamoto. which initcoins, december were worth a billion dollars.

i own a lot of stuff that moves money. >> does that make you a $28,000 charity case? >> when should an entrepreneur sellout? fortune inmade his 2007. >> my goal is to do something unique. i think getting the streaming business going. there is no one right answer. everybody is different. you have to make your choices. in aeling it at south by white t-shirt. some of the biggest tech startups and tech investors are at sxsw. this is where twitter and foursquare both first broke through. remember that? that was years ago. has changed.t

is it irrelevant? we are joined by the author of "shark tank," the official book from the show. what does it say that you are not at sxsw? likes it is a travel schedule thing. i have been there the past few years. it is relevant. >> if you are looking at your travel schedule, you did not say , "i have got to be there." >> i do not think any conference is a must today. think of how information is shared. there are not many companies or people looking for a conference to announce something. you saw twitter and foursquare, but social has grown so much since 2007, i am not sure people are waiting anymore. >> why does it feel like the conference business is already getting better? >> people want to network. the ball are excited about

starting their own companies. you start a company, it is not just about launching. important for a conference to be remembered for something? foursquare did not launch twitter like it did foursquare, but it was the first place people got a chance to feel what twitter was. zuckerberg did a keynote thing. sxsw is also remembered for launching john mayer's career. but since 2009, since foursquare came along, what can you remember sxsw for? was thee 2007, when last time before 2007 that anything happened in south by? >> it was mainly film and music. >> it has been around since 1997. are blogs relevant? you had cuban come in, with broadcast.com, talking about video.

we were arguing, should video even have a place on the list? then there was a break and not much was coming out. and we suck twitter and foursquare. saw twitter and foursquare. is it dead? not really. >> who is sxsw valuable for. our cuban is there. when he is done speaking, is he listening to other speakers, maybe other bands? is it valuable for those who came because they need a job, need funding, have a resume on their smartphone? >> you need to prepare. you have to be ready to go. you have to have done some work in advance, know who to talk to. but it doesn't people are passionate about one thing in one place. that is powerful. >> what are they passionate about? >> tech and media. it is a broad spectrum. but you do have 30,000 people, most of whom have flown down there.

>> don't they go to ces? on they have work to do? out, toder to stand make a difference and learn something, you have to know what you are doing and figure out creative ways to be different. it comes down to the conference goer. >> does it matter who is there? 30,000 people who are passionate about tech and media. but if you do not have zuckerberg -- granted, he was not the hitter in 2008 that he is now. but if you do not have people who appear to be on the cutting edge of something, does that undermine? does that take something away from its meaningfulness? >> i think there are people on the cutting edge. i am not sure this is as newsworthy as in 2007, 2009. then of the mobile, everything that has come out. it is not making headlines, but there are definitely innovators. you have to know where to look

and how to communicate. >> do you need to go to a festival to do those things? >> it is a good bonus to make face and face connections. you can do that these days in a variety of ways. like using face time. >> making connections. you can go off-line and follow people. >> what are your favorite platforms? >> twitter is a great one. you also have to have the off-line part. i like to go to smaller events, where there are less people. >> has sxsw gotten too big? >> for someone like me, yes. i do not love a big conference. other people thrive in that environment, and love being around a lot of hungry people. you have to decide which conference works for you and which does not. i am not sure it is over. i am not sure it will have its best days ahead of it. >> small conference.

super valuable. i think i know the one you want. >> i appreciate it. >> two people get work done there? quick to find work. >> exactly! go and drink your face off, you are not going to meet the people you need. you have to walk the line. you have to have fun. busting johnny cash -- >> should -- i love johnny cash. >> johnny cash will not be playing. >> you need to know how to have fun. >> hold on a second. if this is a carbons for innovators, why do you need to know how do you have fun? when i worked at deutsche bank, i was there to do work. at no point did i say, i made it here to phoenix -- time to have fun. nights what i do friday until monday morning. >> chances are, the culture of

that conference -- i am not going to say it was boring. >> i was there to do work. like it is a different type of work with different types of creators. it is not the financial crowd. it is the young people who wear skinny ties. >> did you call me a loser and old? go to a conference, anytime, running a business, you think of the audience. >> this does not make you feel this industry is a bit bubble, a bit 1999 internet, when you are saying, you need to have fun? agree.ed to work! >> i i think it is bubbly. there are a lot of people starting companies -- whether they are profitable or going to be relevant -- most of them will not. i think we are experiencing a bubble, but that is another show. thank you for joining us. the author of "shark tank."

>> when we come back, the backlash against electronic smoke. another city has banned e-cigs from public places. ♪

>> get excited. bloomberg is taking you on the markets. >> we are going to make it exciting. last week set a record, then where are we today? all to do with india and china. >> exports are fueling concerns about global economic growth. across the board, dow jones down almost zero .5%. if you speak to those on the

street, volumes are down. if you look at what the market has done all this year, it is almost directionless. those who want to go all in have gotten burned. people are confused. >> i mentioned that china had a lot to do with it. exports dropped, if i am not mistaken. analysts were expecting an increase. the csi is down to its lowest level in five years. the story in china, for chinese stocks, has been the opposite of what we have seen in the u.s. over the past five years. this drives the point home. this is a five-year low. dropping after one of its planes disappeared. this is just unbelievable. the 239 passengers and crew. we know the story. or in a malaysia airlines flight to beijing three days ago --

they said they would inspect the wings on the 787. they have multiple issues, and it has got investors worried. euro copter,it the but this is made right here in the good old u.s. of a. ♪

>> live from bloomberg headquarters in new york, this is market makers, with erik schatzker and stephanie ruhle. >> you are watching "market makers." american manufacturing is back. that is what a lot of companies want you to believe. up to companies that live the claim, choosing to manufacture on u.s. soil. euro copter is coming to mississippi.

>> i came to work for euro, or because i like the product. i have been flying for about 31 years, and flown a lot of different models. i like the responsiveness of it. i like the power. it is the largest in the united states, in terms of sales. manufacturer,l and we market and sell aircraft globally. the advantage for the u.s. market is, it is the largest helicopter market in the world. having this facility here is a tremendous advantage to get to know your customer and be close to your customers. we are the largest helicopter provider for the department of homeland security. we provide aircraft to the border patrol. we provide it to the u.s. coast guard. >> they are used in the tourism industry a lot, and the

electronic newsgathering industry. it is a french-german company. >> there is access to government business. before we got any government business. it was a case of investment in the u.s. we won the army contract. >> here at our columbus, mississippi plant, we received a basic airplane. components were installed in the aircraft. the engines were one of the most expensive parts of the aircraft. we are now moving into our testing and rating area. it is where we actually install hardware.

then, we move into plant operations. >> we love mississippi. this is a great place to do business for us. we have a low cost of power and energy here. not have a lot of pressure for our competitors in this state. it is a great order ship. >> that is the story of euro copter. when we come back, the white house list you do not want to be on. on u.s. imposes sanctions the crisis in ukraine? ♪

>> this is bloomberg television. the obama administration is threatening to turn up the economic heat on russia over its military moves in ukraine. what does that mean? peter cook is taking a closer look. what, do we know who or would be on the sanctions hit list the white house is putting together? >> we do not know exactly, because the list is not public yet, and they have not pulled the full sanctions trigger. but they have offered some clues for us. they have also offered a roadmap in europe will stop foremost on the list would be former ukrainian officials suspected of looting the country. that starts right at the top, with former president viktor yanukovych and his sons. they have already been targeted for an asset freeze by the europeans. likely the u.s. would do something similar. deputies as well, those who

carried out the actions in ukraine. that would be the first and foremost on the list for the .s. after that, you have to look at russians. the war regime. anyone seen as undermining ukraine would be a target for asset freezes if the u.s. pulls the trigger, which it has not done yet. that certainly would be the next move. >> we know that yannick ovitz allegedly looted hundreds of millions, if not billions of dollars, from ukraine. do they have significant assets that would be affected by a freeze? we have to see the individuals, but a lot of russians have assets outside of russia specifically. that is where the pain would be felt for these individuals. saw, $160 numbers i

billion held outside of russia. including several u.s. banks. those would be the kinds of assets that would be targeted here. this represents a wide array of people in russia. but that is the risk. i was talking to one member of congress in particular who suggested that if i wasn't oligarch and had a california beach head, i would be nervous. that is the authority harbors would like to give the president right now, to be able to go after those kinds of assets. it seems to be a stretch at this point, but that is what they are talking about. >> we are talking about russian oligarchs. does congress have the ability to get them? and you talk about dark, powerful, mysterious, tough to nail down, they are a whole other level. level.s a different drawing the connection between those folks and what is happening in the ukraine is the most difficult thing, in terms of the law.

there is precedence in this step. look at the legislation passed by congress after the death of theain magnets key -- after death of a lawyer in russian folk -- in russia. he was held and incarcerated. those seen as responsible were targeted by the u.s. congress in law. the subbands were imposed on several people. that did wield significant pain on those folks. john mccain and others would like to expand that law to cover other people directly related to ukraine. the question is whether the obama administration will use that authority. a bigger question is whether the europeans will go along with it as well. >> what about russian banks, for example? >> congress specifically is giving the president authority to go after russian state-owned banks. the existing authority allows them to go after entities seen as undermining ukraine. the biggest targets would be state owned banks in russia.

targets, with experience with the sanctions program -- the problem for them would be being seen as per orion banks. would it shut them down? it would make them difficult -- make it difficult for them to do business. they would not have access to the u.s. and european financial system. >> peter cook with the latest on how the white house may wield its sanction power. >> tough to pull off. when we come back, a big loss for the e cigarette industry. another city has restrictions on where this can be used. ♪

>> welcome back to "market makers." are again under fire. los angeles has become the latest city to ban their use in public spaces, and a new study suggests that teens who have tried e-cigarettes may be more likely to smoke regular ones. what is the future hold for this new business? jason healy is the president of blue e-cigarettes. tried to tell you, i have e-cigarettes. i understand how they work. as a mother in new york city, i love to never see them in the street, because my kids do not know what cigarettes are. they do not even recognize them. if you bring e-cigarettes into this town, they are going to be part of the conversation, and i do not really want them to be.

>> i would disagree that hiding it, especially with the overwhelming benefits it is showing to get smokers away from tobacco cigarettes -- it is not normalizing smoking. normalizing cigarettes and saying, why are you using something that is so unhealthy? look at an e-cig product. hiding it is exactly what you do not want to happen. >> if you walk down a street in new york city right now, you barely see people smoking. that is really nice. >> i agree. the great thing about e-cig's is, it can be done privately in your home or a restaurant. to an areaing forced that is very visible. >> if the goal of the e-cigarette business, the stated goal -- and we have heard this from you now and many other people -- is to help smokers quit smoking regular cigarettes. >> to move away from combustible tobacco, yes.

banned in is already public places. how is it going to hinder their efforts to take e-cigarettes away from public places? >> smokers are forced to go to a certain area. now, e-cig smokers are forced to do the same thing, and we think it is a recipe for relapse. if you are in the cold, you might as well have the ultimate nicotine delivery device, unfortunately is a tobacco cigarette. >> e-cigarettes as an alternative only work if you can smoke them wherever you want? that is basically what you are saying. >> they are less effective as a delivery via -- device for nicotine than traditional cigarettes, unfortunately. it helps us that you can use them in places where you cannot -- as a smoker, you are looking for that crotch. not as good helps you. i can do it in the building, rather than having to go outside. >> in new york city, people do not smoke them at all and restaurants.

as endless people smoke during the day, because they have to go outside. suddenly, they can smoke at work. on that increase the amount of people smoking? >> we have not seen that the bands increase looking right at all. -- decrease smoking rates at all. of the is the future e-cigarette industry? let us forget about bands for a moment. if you are trying to build a market by converting existing tobacco smokers to e-cigarettes, what happens when there are no more tobacco smokers? >> i pray for the day, because i am a smoker, and i moved away from tobacco. we have been under 30, 40 years notegulations, and it has decreased smoking. >> it has not decreased smoking globally, but it has here in america. it has decreased smoking and a number of western countries that were early in their efforts to keep cigarettes out of people's fingers. like there is 41 million smokers still in america.

that is huge, considering the regulations in place. the bands have not decreased it that much. if you look at the science of this, the people that are cigarette smoking, e-cig's are growing a tremendous amount. the evidence is getting more and more overwhelming to help these people. say, smokepens if we them everywhere, smoke them anywhere, and two years from now, we look at this and think it causes younger people too smart smoking. we cannot turn back the clock. >> it is saying what if instead of what it is doing. it is decreasing tobacco numbers greater than any bands have done. from research that health impacts are overwhelming. it is what really is happening, not what if. it is not theory-proving. can suddenly smoke in

restaurants, who is not benefiting besides you? >> it benefits the person smoking. it benefits the people around. we are seeing less tobacco smoke in the air. >> i live in new york city. nobodyfits me now that smokes anything near me. if you can smoke e-cigarettes near me, it does not benefit me. is like the steam coming off your coffee. >> if i am sitting with my children and my children ask, what is a person doing, that is not a conversation i want to have. >> they are going to see smoking. >> where? >> to see it on the street. i saw him walking around new york coming to the studio. when you are in east volker, -- you you are an e-smoker, should be courteous. when kids are around, i do not do it. >> why do so many cities -- why are this many cities banning

e-cigarettes? lobbying fromis big pharma, which loses profits because of e-cigarettes. i understand it is a hatred of smoking. but when you look at the science of it and helping people, hang on a second. we have got people dying. if this is a way to help that, we should really -- inside the bear have a regulatory function. originally, people in your position told us they welcomed regulation. >> and we do, not knee-jerk reactions to theories. the fda will come down with regulations shortly. we have to make sure it is manufactured right and protecting the consumer. >> thank you so much for joining us today. jason healy, president of blue e-cigarettes. breaking news. you know the fund -- bill

ackman's -- they will be conducting a webcast on business practices in china. i have a feeling it will not be a positive presentation. you know bill ackman. the biggest short out there. ♪

quakes that is going to do it. -- >> that is going to do it.

tomorrow, simmons is going to rock the house. a new book. thought dan love was the only guy who cared about transcendental meditation. guess again. this hip-hop king understands the power of quiet. thinking, this woman knows nothing about quiet. >> it is time for on the markets. >> hello. it is time for the options. the vix is climbing after china reported downbeat economic data. exports by 18%. a look at how the options markets are trading. we are joined by a strategist with mk partners. what are you seeing in terms of vix and auctions? >> there is one curiosity we have noticed recently. that is elevation above the 14

levels. over the last 15 months, we have had eight volatility events stop on the -- volatility events, where the vix got down to 12. we would have expected something similar here. have seen spot picks up above that 14 level. no great explanation, other than the obvious geopolitical wisdom related to the ukraine. >> you use the words volatility events. what does that mean? >> in my view, the natural frequency of the market. every two months, almost exactly, we have had the vix move up, from the 18 to almost 23 range. it has reacted to events such as what is happening right now in the ukraine, or other. but it is a very natural pattern we have seen. we think it is something significant that should be watched. >> i had not noticed that pattern. we will be watching.

i noticed shares of battery makers, and fuel cell energy, are among the most actively traded. they have been on a tear. earnings on tuesday. what does the trade in option suggest? >> one of the hottest segments over the last few months. to 11 times since december. of 15% today. of calll, a lot selling. that could be investors just taking profits, or selling those calls against stock. implied volatility is incredibly rich. there are synthetic dividends to create. but power is to front. the largest -- power is different. the 11 strike the call is a seller. i am sorry. that is an intense rate call. you have opening buyers with the stock below $10. as much as this stock has gone vertically, you have people playing both sides.

some are extracting premium. others are betting it is going to go sharply higher. >> are stock options usually only active around earnings? >> the last few months, this has been a very active space in option landing. capscompanies have market below a million dollars. options are very active. will continue to watch, plug and fuel cell energy. you are keeping an eye on akamai technologies. it is one of the best-performing stocks in the s&p 500 index this year, up 27%. what is your strategy? begin to reduce risk a little bit. if you look at akamai, none of the best-performing s&p constituents, year to date. is about 30%. we like taking down some of that long stock position and taking it synthetically. may to buy ats in 70 call spread.

you can do that for about $.60. you commit to getting the stock down. you have upside to the 70 level. the cover the stock fundamentally in a very bullish on it. >> the loss of opportunity is not as bad as profit opportunity. >> at the 70 level, that is where you max out. on a nice day, you make $.50 on a $7.5 call spread. >> we will be back in 30 minutes. ♪

>> welcome to "lunch money" on bloomberg television, where we try together the best stories, interview, and business in business news. i am adam johnson. mark coupon stars in sxsw. hoops, entrepreneurship, and what is in his wallet. some of the most powerful women in business in honor of the 106th international women's day. the dangerous business of carrying oil by rail. the reluctant bitcoin guru. in eats, chipot