>> 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. to cool chipotle trying

off and avocado threat. everyone is talking about a mystery in disguise. >> nine countries involved in the search for the missing malaysian airlines 777. toding from kuala lumpur beijing. 239 people on board. >> the boeing 777 that took off friday.la lumpur air traffic controllers lost contact with the plane as it flew over the sea between malaysia and vietnam. not only a mystery how a massive jetliner can vanish. investigators do not even know when they disappear. thought thatit was they lost contact 2.5 hours. later, it was one hour after takeoff. answer is important. it will determine whether it is malaysia or vietnam that takes the lead in the investigation.

the search has turned up a number of red herrings. and oil slick suspected of being from the aircraft turned out to be from a boat. another image that resembled a life raft turned out to be a cable. malaysia investigating reports of debris near hong kong. south of we noticed hong kong. througharching the area and have not received confirmation of the debris. it could take -- a long time to find a jet that goes missing. very uncommon. plans are the safest when they are out added clues in. most accidents occur at takeoff or landing. 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.

three years ago there was a catastrophic failure of an air france jet over the south atlantic. that took two years to recover the black box in that case. >> that is a richard falkenrath. former director of the national security council and former jet commissioner for the new york police department. terrorism is something he knows about. does this look like terrorism? >> it is suspicious. it fits the pattern because we know a few facts. you wait for the faxed tuesday for themselves. there are more than one possibilities to explain. mosto not lead to the extreme right away. when you hear hoof beats, think of forces and not zebras. the first premise is this was an accident. act of it was an terrorism. you do not reach that until you have some data. >> one piece of data

investigators are looking into is the discovery that two passengers boarded the plane with missing or stolen passports. not just that, they bought their tickets one after another. data points in conjunction that our extra suspicious. they were bought from the same travel agent in thailand. that is possibly a passport fraud international transportation link. they also bought one-way tickets to europe. that is somewhat suspicious because they are traveling through beijing. even if you could get from malaysia to beijing, the arts you could get into a european country are basically zero. we can count on the european countries to be checked against the european database of lost and stolen passports. how the colossal lump or authorities fail to do that is a major question. lumpurthe kuala authorities failed to do that is a major question. it is an inexcusable lapse. >> the two people was stolen

passports were able to board a plane without being stopped. some serious flaws. or than 12 years after the september 11 terror attacks. passports40 million are listed as missing on a database created by interpol in 2012. the police agency says the planes were bordered by more than a billion people last year without travel documents being screened. time for a fresh look at airport security. different kind of security. oil transport security. spells and explosions making people rethink how we transport oil. what warren buffett has to say about this. of sxsw. a geek fest in austin, texas. coming up next in tech. ♪

>> this is "lunch money" on bloomberg television. streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. tech, nothing like a tech conference to bring out the geeks of america. now a trendy gathering of inventors, innovators, entrepreneurs. one of the faces in the crowd is mark cuban, owner of the dallas

mavericks and one of the star business types on "shark tank." what do you think about kids leaving college for the nba? >> i had not against kids going to school. i don't like the idea of us pretending a kid who does not want to go to school or a kid whose goal is to become a basketball player, pretend he is a student athlete. of facebookels buying whatsapp, what do you think of entrepreneurs cashing out? >> depends what your goal is. my goal was freedom. getting the streaming business going. there is no one right answer. everybody is different and you have to make your choices. >>? or three, what is in your wallet? about 300 dollars and pictures of my kids, insurance cards and credit cards. other faces in the crowd at sxsw including aol founder steve

case. emily chang caught up with him and asked about the facebook-whatsapp deal. >> facebook was giving 10% of their stock to acquire whatsapp. it was not all cash. they are saying having this is valuable and will give us 10% of our company. we do not want it to be in somebody else's or bit like google and we do not want it is a defensive move. has activepany that users adding one million a day. as they try to compete on a broader scale there is significant revenue opportunity. will that be worth $19 billion, whether that becomes a good acquisition, it will take five years to figure out. but i understand the facebook logic. gone through big m&a with aol-time warner. what of the big challenges committee?

>> the model has shifted in the last 10 years. the model with aol-time warner was how do you manage them in integrative way. microsoft acquiring companies in the 1980's and 1990's required people to move to seattle said it would be in one place. the model that is emerging with facebook and instagram or amazon buying zappa was or google buying youtube is to buy these businesses and still keep them reasonably independent and reasonably autonomous so they will keep the entrepreneurial the core teamng together. if you try to push them together you will lose some of those people and some of that innovation. >> i just interviewed eric schmidt of google. he had the idea that the four horsemen are facebook, apple, google, amazon, that that is not going to change. what do you think? >> it depends on the time frame. they are great companies.

calling them the four horsemen is fair. eric is very smart. you naturally, things will shift. one of those companies will make a mistake and, or, some company will emerge. became a techsxsw gathering, austin became a hub for high tech. any other places to watch out for? >> the washington dc area, where i have lived for 30 years. it is where my firm is based. a very vibrant market. all kinds of interesting companies. the education and health care space. d.c. is on the rise. more broadly, the regions around the country. they are starting to show momentum. it is easier and cheaper to start companies. you can decide where to start a company as opposed to feeling you have to move to san francisco or new york. it is a trend that will develop over the next decade. the rise of the rest. >> how is being based in d.c. different than if you were on

sand hill road? >> silicon valley is a great ecosystem. it is the best in the country and the world. there are great companies and great people and great investors there. it is sort of like one pond everybody is fishing in. we are trying to focus on other ponds with less people and less investors. but still are developing in interesting ways. in austin, we made an investment in a company that is going like crazy. in rural north carolina, a lot of companies in the d.c. version. is different. there are opportunities anywhere. we want to back entrepreneurs with big ideas wherever they happen to be. our bias is to invest ease of the mississippi. we think there is opportunity there and there is less venture-capital focus on those markets. a little off the beaten track. that creates opportunities for us. speaking of valuations,

whatsapp, $19 billion. pinterest, 3.8 billion dollars, makes no revenue. twitter has a thirtysomething billion dollar market cap and does not make a profit. how fair are those numbers? violations are healthy. parties all you something when -- hardn't growing like to value something when they are growing like crazy and you don't know what they're going to look like five years down the road. sometimes you guess right, sometimes you guess wrong. the valuations are pretty rich. i do not think -- i know there is concern about a bubble. i do not think it is broad-based. there are a number of companies that are very healthily value. some might be overvalued. there are a lot of companies that are fairly valued and many companies that are undervalued. you cannot take it with a broad brush. you have to look at the specific situation. it will play out over time. >> from talk of one bubble to

another. is he or is he not? denies thatkamoto he is the father of bitcoin. the latest on this crazy story. toping from some of the women in technology, including cisco's padma warrior. the international space station has a new boss. commanderjapanese took over yesterday following a ceremony on board. congratulations, sir. ♪

>> this is "lunch money" on bloomberg television. streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. the 106tharch

international women's day. we interviewed women like kristin gillibrand, on a mission to get more women intto run for office. exception to washington being broken -- the women work very well together, both democrats and republicans find common ground and compromise and get things done. my goal long-term is to change the players. make sure we have more women winning these elections. off the sidelines. a nationwide call to action asking women to be heard on the issues they care about. this cycle, we are going to women$2 million for candidates. last cycle we raised $1 million. it goes straight into campaigns so their voice can be heard. they can tell people what they care about and why they are running. >> anyway to make the senate more bipartisan?

should be welcomed to us all. congress cannot do business and must republicans and democrats agree. people wonder is there common ground between you and, say, senator deb fisher from nebraska? do you find common ground because you share certain points of view? >> i think deb and i will find something to work on. we care a lot about veterans and manufacturing and agricultural issues. i suspect we will find things to work on. kelly ayotte and i have found things on the national security agenda along with making sure that parents of autistic kids in the military get benefits they need. we found common ground. in this actual assault -- in the sexual cell bill, 17 out of 20 women wanted reform. i have great hope for all to sidelines. >> gisele ruiz started her

career 20 years ago as a management trainee at walmart. her story is about opportunity. >> i learned about walmart while i was going to college at santa clara university. i learned about the story. what brought me to walmart was the company's values. why i have stayed with walmart over the years -- walmart has afforded me opportunities to do the things that i love. i do love retail in-store operations. it has afforded me opportunities to do things that stretched me and grooming. in that case, i have been able to take on real estate and worked in human resources. i have worked in different functional areas of the company. my story is not unique. there are hundreds of other stories. you come to work for walmart and you find wonderful opportunities that are absolutely real. they are doable. we promoted 170,000 associates last year alone.

of those promotions happened to associates that were within one year with the company. the opportunities are real. >> and imagine having 1.5 million twitter followers. technologychief officer padma warrior. >> i never expected to have so many followers. i am so surprised. try to do oni twitter is i use it as a platform to really share what is on my mind. i do not just do it in the field of technology. i love to paint, i post pictures of my artwork. i write haiku's on twitter, i asked people for opinions. i talk about movies or books. i think that is one of the reasons why i have the following that i do. i do enjoy having so many followers. i take them very seriously. often times they send me ideas and sometimes criticism about my ideas. i think it is all very useful to

me. it is a great way for me to connect with a large audience and hear what is on their mind. not just in technology. about a work-life balance, the books i have read. people make recommendations. it is a fun platform. >> another woman making a name for herself is lead bresk -- is only a bust founder ofbusque, taskrabbit. >> i was part of an incubator program that facebook was running. i was able to raise investment from silicon valley investors and made the move to the west coast. >> it was facebook that helped you raise the money? >> it was an incubator program itg funded by face but i'l -- beingd incubator program

funded by facebook. that was my first experience on the west coast with start ups. i was able to learn from that program. >> how is the start up environment in silicon valley different from boston? they both have their own cultures and their own personalities. what i love about the environment in silicon valley is that you can have very serendipitous moments. you might be riding in an elevator with the ceo of intuit or someone at ebay. you might be sitting in a coffee shop and there is a group of starts chatting about marketplaces. it has a really nice energy and five. you to havelows serendipitous moments that can move your company forward in a way you may have never imagined

yourself. >> warren buffett is in a $5 billion spot. we will tell you why and with whom in nation. a 90-year-old evan gets an upgrade. ♪ >> 26 minutes past the hour, bloomberg is "on the markets." i am julie hyman. breaking news from herbalife. denying bill ackman's accusation structure.ramid this is the latest. urging square has made a $1 billion bet -- pershing square has made a $1 billion bet against herbalife. investigations into the chinese business practices. in terms of the broader market, declines across the board after

worse than estimated chinese export data. pain in commodities and commodities producers. dow falling the most, down .4%. back in 30 minutes. ♪

>> this is "lunch money" on bloomberg television. streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. today's moving pictures -- the video is the story. in venezuela, protest against nicolas maduro in caracas. securityface off with officials. 21 people have died since february 12. china, battling bird flu. a city in the southwestern part of the country killed and disposed of nearly one million chickens in a matter of days after symptoms of avian flu were

reported. 72 people in china have died from bird flu this year. in chile, a british yachtsmen was rescued after his boat failed. andrew was attempting his second nonstop around the world. attempt afterrst feeling stomach pains in 2010. he says he is healthy and thanks the chilean navy. the 5 billion dollar freight spot. warren buffett is pushing for oil transportation safety. hess says it is too expensive. is backing new standards requiring older cars to be modified or junked. >> why aren't trends carrying -- crudee trains carrying blowing up? there is a lot more oil. formation shale

was producing one million barrels of oil a day in 2013. in 2010, it was producing 1/3 of that. there are no pipelines coming out of north dakota. bakken has two go by train. easily,ses can ignite turning a derailment into an explosion. safety experts are calling for better rail cars. upgrading them costs as much as $45,000 per car. new pipelines would require large amounts of time, money, and political will. thanks to oil production, north dakota enjoys the nation's

lowest unemployment rate. the trade-off is the dangerous combination of lots of combustible oil being carried on by the trains. former ceo of bp tells charlie rose we need alternative methods of transport. case and point, the keystone pipeline. he is all for it. thing and will stop the movement of less secure means moving oil. moving by rail. i know people are concerned about burning oil, they should be more concerned about burning gas. they should be very concerned about all of that. we have got to bury these things efficiently. >> what should the state do? the u.s. now. in terms of government incentives to the development of alternative fuels? >> it needs to make sure it and set of eyes is development to get the cost down. it is good that the government

incentivizes and occasionally supports energy sources. arcticey have done in drilling and the development of all sorts of energies. as that incentivizes technology, the price comes down. so the support of government should come down. it should continue to do that. the u.s. has done this quite well. it has been one of the biggest growth areas for renewable energy. you can watch charlie rose's full interview with john brown on bloomberg television thaoni ght. dorian nakamoto may say he is not the father of bitcoin. a lot of people throw support his way. one woman says go hunt your own food, do more with less. in eats. escaped a major

injury after getting entangled with an aircraft in tebow, florida. they were about 75 feet off the ground. he says he will continue skydiving when he feels safe again. ♪

>> this is "lunch money" on bloomberg television. streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. is he? i am talking about dorian nakamoto being the father of bitcoin. not, "newsweek" says he is.

enthusiasts have sent him 28 thousand dollars in th b itcoin. leah mcgrath goodman, the author of the "newsweek" these answers questions from tom keene and trish regan. >> we have to stop saying it is no they deal who did this. i am ok with being skeptical of certain details. i am ok with kicking the tires. i really do think there is more to this. i am really happy that other journalists want to look at this. >> this is not as much about bitcoin as much as it is about journalismany other institute. your story is based on forensic research. not evidence or a first order condition that so and so did whatever they did. >> i do not consider it a lack of evidence. >> what is the evidence that

this guy -- >> you are saying? thenswer the question for world. what is the evidence this guy is who he is? >> you are saying there is no evidence? >> i am asking you what the evidence is. >> i presented the evidence in the story and i stand by it. if people say it is not compelling, fine. but we would not be sitting here if people do not find it compelling. >> i do not say it is not compelling. >> someone saying that is not evidence is not good enough. i would like to know what is wrong with it. >> to find forensic research. >> i was talking about the process. you do not say this guy could be it. we are going to do a reverse textual analysis. you say why is this person with quite you did not ever say -- >> theory on set. it is the difference --

>> we are arguing about wahhat is evidence. >> did he say i created bitcoin? >> no, he did not. he said he was no longer involved. he was quite clear it was bitcoin we were talking about. >> i am no longer involved is different. no longer involved and had turned it over to others. then enter the conversation so i could not continue at that point. the police indicated we cannot talk anymore. >> why? >> they said he does not want to talk about it. that was that. >> as a journalist, what are you going to do? are you going to fight with the police? >> if he is the bitcoin mastermind, what might that mean

about the community where he lives? jon erlichman traveled around table city to see if any local merchants accept the crypto currency. >> do you take bitcoin? >> yeah. >> you do take bitcoin? do you know if these once take bitcoin? >> quarters. >> what if i want to use bitcoin . >> no. they are not made to take the card. i i think with one bitcoin could get as much laundry done as what you are doing. >> i am sure. >> if i have a toothpick, can i use bitcoin here? >> if the insurance accepts it.

>> hello. >> welcome to mcdonald's. >> can i pay with bitcoin? >> i do not think so. >> maybe in the future? bitcoin one day. >> maybe. >> maybe, there you go. >> what if i was paying with bitcoins? >> bitcoins, i am not sure -- >> canap i pay with bitcoin? maybe in the future? >> maybe. burgers, maybe one day. >> want to cook like madonna? with a stove built by a nobel laureate. that is bananas.

the latest from the produce department coming up in eats. thousands of people gathering in rio de janeiro for a traditional block party in brazil. more than 200 percussionists were involved in the parade. ♪

>> a playful headline in eats. bankruptcy forr the second time in three years. linning slowing -- blaming food courts.ic and fyffes toill join

create the world's largest banana company. hla spokesman says in -- a ch there maykesman says be some shortages the cause of the weather but charlie will still sell guac. the author of "food planet and plate" says we need to change. >> this is creating problems for farmers. we know that as temperatures go up, yields come down. the latest research in this country from a team at stanford indicates that for each one degree celsius rise in temperature we get a 16% decline in grain yields. the relationship between the earth's climate and food supply

is sensitive. we are beginning to see some of the effects of that rfid prices. revolutionizen -- the way we eat. that is what georgia pellegrini is advocating. same land myon the great grandfather had lived on. i wanted to get back to things that were real and lasting versus the virtual reality we live in. it was about using my hands and getting in touch with the values of our grandparents' generation. the book is about getting people back to the land. even if the land is your patio or growing potatoes on your fire escape. doing more with less, rolling up your sleeves and getting in touch with your roots in small ways. ands it because wild meat heirloom vegetables grown in your backyard or whatever the

case may be taste better? >> they do taste better but it is more about getting in touch with who we are as humans. we are so focused on our fast-paced lives. we do not realize the world has so many things at our fingertips. there is things going at the sidewalk cracks. becoming more conscious human beings. >> after you got all the sustainable food, how do you cook it? try a stove invented by a nobel prize winner and then murdered by a world war ii spy. stewart. i am martha i have written several cookbooks. i would like to talk about the aga stove. celebrity chefs, performers, prime ministers, and royalty have joined the aga club. >> there is something exceptional about the design of

the aga. >> the dense, cast iron shell absorbs and retains heat. food is cooked by radiant heat, not heated air. >> there is a big switch and the fuel type used by the aga. from having oil and gas into having a product that is large electric. today are electric. a swedish physicist invented the cooker in 1922. it was brought to britain in the 1930's and reinvented by a team of engineers and marketers. the earliest and most successful salesman? original ad man and world war ii spy david. aga's are made in the original foundry in the english midlands, assembled by hand. sales plummeted during the recession, forcing the company to lay off 1/5 of its workers.

it has been a tough few years. , transitionry floor is afoot. these milk cooker's -- these new cookers contain electronics. they turn on and off with a smart phone. they are selling. is the best ofga the products we have ever made. an aga can go from being a successful niche brand to a more global product. >> here is something hot from the oven. pizza hut's touchscreen table. create your own pizza and play angry birds. it is not in a restaurant yet. it is today's history -- it is today's mystery meat. ♪

past the hour.56 bloomberg is "on the markets." i am julie hyman. let's look at where we stand halfway through the trading session. declines across the board. having to do with worse an estimated date out of china. concerns about the global growth

engine. china is a part of that. with stocks down today, we are earlier talked to paul. he says investors are getting more comfortable owning stocks. this morning on "in the loop," betty liu asked what he meant. marketsve seen two bear 50% drops in the s&p 500. as the market rallies, investors were not believing it. we have gotten to the point where the market has very little volatility. investors -- stocks have been doing well for five years and investors are slowly coming back in. we have always had this mentality in the bull market of shoot first ask questions later, so first ask questions later. we are seeing events like the situation in ukraine. a little bit of a selloff last monday. >> and then we came back. theaul might be bullish on markets, adam johnson has a little bit of a warning for investors in insight and action.

i talked about china, one of the real catalysts for the selloff. to paul's point, that news makes us take a step back. then we keep going back up again. >> what happened overnight was that china announced exports. they were lousy. exports, the estimated forecast had been up seven point five percent. it was down 18.5%. that is the worst since 2009. as we talked about that this morning with people like richard on the council of foreign relations, i asked if there is a problem with the numbers. he said yes, there is. china is not growing 7.5%, that is the issue. it begs the question what exposure u.s. investors might have to china that they do not realize. i ran a test of the s&p 1500 and found 8 stocks. theirave at least 50% of sales in china. people did not realize that.

you think you are buying a u.s. company and you're not. make sure you know where the sales are being built. and whether production is in china or not. there is a problem in china. >> of course, the problem is deeper than that. it is not just about companies that get a lot of sales in china. they might be dependent on if there is a ripple effect. if the chinese economy weakens more than people expect. >> you have spoken with gordon chang, author with the book that looks at electricity usage in china, growing at 1.5%. how can you have 7.5% gdp growth when you have electricity growing only 1.5%? leland, the president of china book, look at the data, it is going down. he questions the 7.5% growth rate. >> it is tricky to see what is really happening there beneath

the numbers. electricity usage is pretty ingenious. >> ingenious way. chinese stocks are at five-year lows. 2009, that was the love for us. five years ago. we are what? 130% abovethat, that. and yet they are back to where they were. >> wants china is the lesson of that. try and look to need those numbers to figure out what is really happening. thank you so much. "on the markets" again in 30 minutes. "bloomberg west" is next. ♪

>> live from pier three in sentences go, welcome to "bloomberg west." i am emmy chang. edward snowden and speaks to sxsw, talking to the technology community and saying tech company should take the lead on encryption. for the moment, advertising is coming to instagram after a deal with omnicom. we will tell you why it is not a typical agency deal. first, a check