>> welcome to "lunch money" on bloomberg television, where we tie together the best stories, interview, and business in business news. i am adam johnson. mark cuban 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, chipotle trying to cool

off and avocado threat. everyone is talking about a mystery in the skies and the sea. >> nine countries involved in the search for the missing malaysian airlines 777. heading from kuala lumpur to beijing. 239 people on board. >> the boeing 777 that took off from kuala lumpur friday. 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 it disappeared. >> initially it was thought that they lost contact 2 1/2 hours in. later, it was one hour after takeoff. >> the 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. an 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. >> debris we noticed south of hong kong. we are searching through the area and have not received confirmation of the debris. >> bottom line -- it could take a long time to find a jet that goes missing. >> very uncommon. planes are the safest when they are at altitude cruising. 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 richard falkenrath. former director of the national security council and former deputy 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 facts to speak for themselves. there are more than one possibilities to explain. you do not lead to the most extreme right away. when you hear hoof beats, think of horses and not zebras. the first premise is this was an accident. second, it was an act of 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. >> two data points in conjunction that are 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 odds you could get into a european country are basically zero. we can count on the european countries to be checking against the european database of lost and stolen passports. how the kuala lumpur 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. more than 12 years after the september 11 terror attacks. more than 40 million passports are listed as missing on a database created by interpol in 2012. the police agency says that planes were boarded by more than a million people last year without travel documents being screened. time for a fresh look at airport security. on to a different kind of security. oil transport security. spills and explosions making people rethink how we transport oil. what warren buffett has to say about this. and best 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 smart phone. i am adam johnson. in tech, nothing like a tech conference to bring out the geeks of america. sxsw is 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 have nothing 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. >> on the heels of facebook 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. >> question number three, what is in your wallet? >> about $300 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 up 10% of our company. we do not want it to be in somebody else's orbit like google and we do not want -- it is a defensive move. it is a company that has active 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. >> you have 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 so that it would be in one place. the model that is emerging with facebook and instagram or amazon buying zappos or google buying youtube is to buy these businesses and still keep them reasonably independent and reasonably autonomous so they will keep the entrepreneurial zeal and keeping the core team 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 timeframe. they are great companies. calling them the four horsemen is fair. eric is very smart. naturally, things will shift.

one of those companies will make a mistake and, or, some company will emerge. >> ever since sxsw became a tech gathering, austin became a hub for high tech. any other places to watch out for? >> the washington, d.c., 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. -- region. it 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, makes no revenue. twitter has a thirtysomething billion dollar market cap and does not make a profit. how fair are those numbers? >> the violations are healthy. hard 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 valued. 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? dorian nakamoto denies that he

is the father of bitcoin. the latest on this crazy story. hearing from some of the top women in technology, including cisco's padma warrior. the international space station has a new boss. the first japanese commander 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 smart phone.

i am adam johnson. saturday march the 106th international women's day. we interviewed women like kristin gillibrand, on a mission to get more women to run for office. >> the one exception to washington being broken -- the women work very well together, both democrats and republicans to 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 is a nationwide call to action asking women to be heard on the issues they care about. this cycle, we are going to raise $2 million for women candidates. last cycle we raised $1 million. it goes straight into campaigns so their voices can be heard. they can tell people what they care about and why they are running. >> any way to make the senate more bipartisan? that should be welcomed to us all.

congress cannot do business and -- unless 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 the sexual assault 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 grew me. 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. 40% 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. meet cisco chief technology officer padma warrior. >> i never expected to have so many followers. i am so surprised. i think what i try to do on 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 haikus on twitter, i ask 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. oftentimes 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 leah busque, founder of 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 being funded by facebook.

that was my first experience on the west coast with startups. i was able to learn from that program. >> how is the startup 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 startups chatting about marketplaces. it has a really nice energy and vibe. it really allows you to have 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 oven gets an upgrade. ♪

>> this is "lunch money" on bloomberg television. streaming live on bloomberg.com, your tablet, and your smart phone. i am adam johnson. today's moving pictures -- the video is the story. in venezuela, protest against nicolas maduro in caracas. students face off with security officials. 21 people have died since february 12. in 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. he was attempting his second nonstop around the world. he quit his first attempt after feeling stomach pains in 2010. he says he is healthy and thanks the chilean navy. in nation, the $5 billion freight spat. warren buffett is pushing for oil transportation safety. hess says it is too expensive. buffett is backing new standards requiring older cars to be modified or junked. >> why are trains carrying crude blowing up? there is a lot more oil. the bakken shale formation 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. oil coming from bakken has to go by train or barge. crude gases can ignite easily, 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 lots of trains. >> the former ceo of bp tells charlie rose we need alternative methods of transport. case and point, the keystone pipeline. he is all for it. >> it is a good thing because it will stop the movement of less secure means moving oil. moving by rail. i know people are concerned about burning oil, but they should be more concerned about burning gas. they should be very concerned about all of it. we have got to burn these things efficiently. >> what should the state do? the united states now. in terms of government incentives to the development of alternative fuels? >> it needs to make sure it and

incentivies development to get the cost down. it is good that the government incentivizes and occasionally supports energy sources. like they have done in arctic 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 tonight. 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. a skydiver escaped a major injury after getting entangled with an aircraft in tampa, 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 smart phone. i am adam johnson. is he? i am talking about dorian nakamoto being the father of bitcoin. he says he is not, "newsweek" says he is.

enthusiasts have sent him $28,000 in bitcoin. leah mcgrath goodman, the author of the "newsweek" piece, answers questions from tom keene and trish regan. >> we have to stop saying it is no big 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 poynter or any other journalism 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?

>> answer the question for the 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 did 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 what 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. >> he was no longer involved and had turned it over to others. the police then ended the conversation so i could not continue at that point. the police indicated we cannot talk any more. >> 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 temple 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 bitcoins? >> quarters. >> what if i want to use bitcoin. >> no. they are not made to take the card. >> i think with one bitcoin i 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 -- >> can i pay with bitcoin? maybe in the future? >> maybe. >> bitcoin burgers, maybe one day. want to cook like madonna? with a stove built by a nobel laureate. a merger 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. sbarro filed for bankruptcy for the second time in three years. blaming slowing traffic in food courts. chiquita will join fyffes to create the world's largest banana company. a chipotle spokesman says there

may be some shortages because of the weather, but chipotle will still sell guacamole. the author of "full planet, empty plate" says we need to change. >> climate system is changing, and 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 on our food prices. >> one solution -- revolutionize the way we eat. that is what georgia pellegrini is advocating. >> i grew up on the same land my 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 planter 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. >> when you say going back, is it because wild meats and 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 purslane growing in 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 marketed by a world war ii spy. >> hello, i am martha stewart. i have written several cookbooks. today 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 go from having oil and gas into having a product that is largely electric. 2/3 of aga's 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 ogleby. agas 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.

on the factory floor, transition is afoot. these new cookers contain electronics. they turn on and off with a smart phone. they are selling. >> the modern aga is the best of 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 mystery meat. ♪

it was part of the fabric of the community. salescreased our territory, selling more beer in our existing territory. -- beer hall in boston we created a culture of our employees where we let people do their thing. people respond to that.

let's take a look at where stocks closed. stocks closed well up off the 500, with the s&p

closing lower. suffering the most about concerns of growth in china and what that means for commodities. as stocks pulled back, we marked the fifth anniversary of the whole market. michael who has been looking at this the past few years. how does it compare to the last rally to the highs we saw? >> the size and speed are comparable. the s&p has been pushing a 25% annual gain since 2009. the bull market of the.com era is 27%. nervous.people that is where the comparison

ends. is trading, the s&p at 17 times earnings, yet only average in its lifespan. it took a long time for investors to get comfortable with average valuations. bubble, tech stocks were in the u080's. are not where they were. >> we still had a great quotation in our story today. a bull market without raging oldster trumpet it. everybody was a bowl in the 1990's, ignoring fundamentals, ignoring saudi relations, betting on the promise of growth. the market got ahead of itself. instead of being marked by over optimism, it is almost over pessimism. >> somebody is buying.

>> bulls will say earnings have been growing 20% per quarter since 2009. growth in the tech bubble, and it did not pan out. >> what is the outlook? you seay there's pessimism. forecasters in wall street are looking for a big gain this year? >> from the beginning of the year, a six percent gain, almost 30% last year. basically it is that cautious optimism. what arepeople ask me most investors saying. at the beginning of the year people were saying it was going sideways, and so far they have been right. or 2% thisup 1% year. the matter what you throw at this market, ukraine, argentina,

whatever it is, the u.s. credit rating, it just keeps marching on. we have these corrections here, but we have not seen a bear market since then. >> what is the single biggest risk ac that could actually derail it? >> if you look at earnings valuations, we need to keep earnings growing. >> that is pretty basic. thank you so much. julie hyman.