>> i am mark crumpton. the intersection of business and economics with the main street perspective. men's wearhouse and jos a bank strike a $1.8 billion deal. we will see how one of the world's most popular helicopters . to our viewers in the united states and to those of you joining us around the world, welcome. we have full coverage of the

stocks and stories making headlines today. megan hughes focuses on malaysia flight 370 black box flight recorder. we are receiving word from the malaysian military indicate it has radar evidence showing the missing boeing 777 jetliner changed course and made it to the malik a straight. -- strait. it injects new mystery into the disappearance. radar at a military base detected the airliner at the northern approach to the strait. the aircraft was believed to be flying low. ap reports the officials spoke on condition of anonymity

because of the sensitivity of the information. from nine countries are hoping to find the black box that could hold the key to the mystery. we are joined by megan hughes. do we know what happened to the transponder? >> a lot of moving parts. is a hugeonder, this question. it is constantly sending data on altitude, speed, and direction back to air traffic control. investigators do not know why the transponder went dark less than an hour after takeoff. this aircraft should have been equipped with an emergency location transmitter. this is made by honeywell. it sends out a signal upon impact. fact hasnot work, the speculating that there was some kind of huge explosion.

>> that has technology as it flies, it is constantly talking to the ground. it is telling boeing, hey, maybe we need to change something at this next stop because it is not working quite right. it is telling the other control centers, the altitude, temperature, those kinds of things. that failed. >> separate from the transponder, the black box, these are different -- investigators cannot find them. honeywell says this plane would have been equipped with two of those black boxes. which are actually orange. you have the cockpit voice recorder. that is up to two hours. after the crash, these inmates ging sound.

they have a battery that will last about a month. it could still be underwater somewhere. the signal is supposed to be heard at a depth of 2.8 miles. the area is much less than that. questions,other big have they even been able to properly identify the search area? one of the things we are learning today, the expected course may have been off. out as one of the things that could be the obstacle and finding the black box. >> what about this technology? is it outdated? >> a honeywell rep says this is the latest technology for this kind of equipment. the last update to these black boxes wasn't back in july of 2010 -- was back in july of 2010. government and industry have been debating and looking at

streaming a more direct transmission as an option. it was going back through satellite to the ground. that is a debate that has been going on since the air france crash back in 2009. this will reignite that debate. >> thank you. more on the missing malaysian jetliner coming up. m.i.t. professor will join us from washington in about 10 minutes. that is still ahead. months, but the dueling discount suit makers have struck a deal. men's wearhouse will buy jos a bank. cristina alesci has more on the story. they like the way they look. asked i love that, mark. like this has been going on since we were both children. wanted a certain price and they got it today.

they rejected every single offer from men's wearhouse. they started this fight back in october when it went directly to men's wearhouse shareholders and said they wanted to take over men's wearhouse, which is a much bigger company. of both of these companies were rising and falling. >> even through all of this noise, was there ever any doubt that this deal would be consummated? >> tremendous amounts of doubts reflected in the stock prices. joe's a bank got so indignant to a deal, it it tried to do a deal with eddie bauer. that was not successful. you have to give it to them. $65 a share, a pretty nice price. like shareholders are pretty happy today.

>> how happy? >> the chairman of joe's a bank bank, it got to a point where shareholders were so angry that he had turned down offers so many times, they took him to court and sued him over this. they made it so my key was abrogating his fiduciary duty. all of this harsh the goading -- negotiating tactics paid off. they talk about the fact that they need clearance from the government. it will work with the federal trade commission to make sure they get all of the approvals necessary. they released -- the release only has the bare bones of the actual agreement. we will learn more about the specific provisions as it relates to antitrust. >> according to the story on the

terminal, the combined company will have more than 1700 u.s. stores. what do both of these gain from each other? that in is no doubt these kinds of merger situations, they will always overestimate how much money they will save. they will save about $150 million annually. some of this could be a little bit of marketing, but bank will get the nice business that men's wearhouse has of renting tuxedos . there are synergies here. the termp using marriage. was this a shotgun wedding? >> it was a runaway bride situation that resulted in a

shotgun wedding. >> nicely done. we will have more on the mystery surrounding malaysian airlines flight tree hundred 70. we will talk to an aeronautics expert from m.i.t.. stay with us. ♪

>> tomorrow an exclusive interview with billionaire investor george soros. he speaks to bloomberg tv from london on the tragedy of the european union. lachman --, bill ackamn began a webcast herbalife and china.

toso far, he has not gone the china situation. he will be presenting documents he says proves the government -- the company is violating the law in china. herbalife has lashed back out .gainst his allegations he has been saying the company is a pyramid scheme and the new york times did an extensive article yesterday that went through the links to which mr. ackman, in terms of trying to influence washington and groups around the nation to try to shore up his case. herbalife has spent a lobbying effort. on the call, he has talked about his support of these various efforts was on the up and up. he was mostly responding to the new york times article and had not turned to the situation in china. >> what is the genesis of all of this? >> it is one of the big growth areas for herbalife.

the company has been expanding around the world, has made a lot of inroads into latin america. china could be the next big area of growth. his case is the company is a pyramid scheme and presumably, he will make the same case that is happening in china as well. >> julie hyman, we will let you get back to that webcast. for more on the malaysian airlines missing flight, i'm joined from washington by an m.i.t. professor of aeronautics and astronautics. he is a member of the congressional aeronautical advisory committee. thank you for your time. my colleague reported a few moments ago that the malaysian military says the radar shows the missing boeing 777 jetliner

changed course and made it to the strait. does that information tell us anything about what happened? true, it would be a significant piece of information. they are saying they have a report, they did a track on an airplane that was heading to the west. the trajectory would have been they were initially heading north and would have done a 90 degree left turn. turn that was abrupt? an abrupt turn like that, does that tell us anything? that kind ofike turn would've been some sort of intentional turn and does not like it would have been a malfunction. any of the typical malfunctions you would think of, like a loss of electrical power, something

they could have lost their navigational capability, but it was good clear conditions so they could have navigated otherwise. that it wascate some sort of intentional act. ask if theing to plane was able to maintain a cruising out the dude when it went off course. would that mean the flight was diverted intentionally? heard, thet i've airplane was about 3000 feet lower. they did not have a transponder, so what we know is malaysian military tract an airplane -- tract an airplane. it was the cma plane, that would've been some sort of intentional -- if it was that airplane, that would have been some sort of intentional turn.

>> concerns you might have about word about those two passports that folks who were not the folks in the passports were on that aircraft? again, i think we have to go every piece of evidence at a time. however, if -- and this is a hypothesis now, if this airplane to turn off its transponder and do a turn away from the original flight track, that is the same kind of trajectory that occurred during a september 11 hijacking. let me be very conscious, we do not know that. all we know is it does appear that an airplane turned. if it was the same airplane, why did they do it? there is no real logical reason they would have done a turn like that on their intended course. it does not seem to correlate

with any kind of failure mode. >> is it possible that searchers are looking in the wrong places? it is a huge aircraft. the company's largest twin-engine jet. where is the debris field? what in modern technology detected it by now? >> there is a huge area that it could be in. from the point it diverted or that it was last observed, it had enough fuel to go between -- about 3000 miles. you are looking at a 6000 mile diameter circle around that location. that it goes all the way from india up into china. indonesia. it could be anywhere in that location. the fact we have not founded in four days, while troubling, it is a much tougher search problem where you have no idea where they were trying to go.

>> do you see any similarities between what possibly could have happened and what happened back in 2009? it took someone years to actually find her that was located. similarities and that it occurred over water. case, the france airline had a satellite transmitter and reported the malfunctions to the ground. we knew it was a malfunction problem. in this case, we do not have any real information. abrupt change in course. what caused the change in course and where is the airplane now, it could've turned left and it could've gone in a different direction. it really is a huge and difficult search case. it could have made land. it had enough fuel to make landfall. left.have about a minute

i have to ask you about the structural integrity of modern aircraft. would that integrity be such that if this plane were in a worse case scenario to have disintegrated, we would still be able to find pieces of the >> absolutely. if the airplane came apart in the air, there would be a lot small pieces that are light and would float. there would be a larger debris field and easier to find. a harder scenario is if the airplane got into the water contact and sank. >> m.i.t. professor of aeronautics and astronautics joining us from our washington bureau with the latest on malaysia flight 370. thank you for your time and expertise. we will be back with a check on the markets and a lot more. ♪

>> all you folks using twitter were receiving breaking news that the twitter website is down. something is technically wrong. it says it will fix it as soon as possible and try to get things back to normal soon. been on the road recently, you've probably hit a pothole. they are ruining cars and taking down city and state budgets. season, theyrepair are being filled that record numbers. the epidemic is starting to feel like a scary movie. here is a look. --several inches deep

potholes are like land mines. ♪ >> too many potholes, dangerous, gaping holes. >> crews have been working overtime to try to fill them. >> crews are out seven days a week, even overnight. ♪ ♪

>> that was pretty scary. it is 26 past the hour and that means bloomberg is on the market. >> let's take a look at where stocks are trading right now. we have had not much change in the session, but it is heading downward. the slide does continue. stocks, if individual wanted to update you on this herbalife conference that bill is having right now. he is saying the herbalife violates laws in china. has a short bet against herbalife, which has not worked out so well. a lot of big hedge fund managers stacked up on the other side against him. announced mcdonald's

the fast food chain said the company may cut costs by scrutinizing expenses. we will have more on the markets in 30 minutes. ♪

>> welcome back to the second half hour of "bottom line." crude oil dropped to $100 a barrel for the first time since february 14. copper plunged for a third day of losses, dropping to the lowest since july of 2010. coffee futures extended a rally. a look at some of your commodities on this tuesday. let's check some of the top stories. the malaysian military says it has radar evidence showing the missing jetliner changed course

and made it to -- changed course. the development in jackson and mystery into the investigation of the flights disappearance. new mystery into the investigation of the flights disappearance. the crimean parliament voted that the black sea peninsula will declare itself an independent state if residents agreed to split off from the ukraine and join russia. the regional legislature adopted the so-called declaration of independence of the autonomous republic of crimea. crimea will become an independent state if its residents vote on sunday in favor of joining russia. to ban marked the third in a verse three of that devastating earthquake and six -- japan marked the third anniversary of that devastating earthquake and tsunami. it triggered a nuclear crisis. japan has struggled to rebuild

towns and villages and to clean up radiation from the meltdowns at the fukushima to clear power plant. reconstruction lands are finally taking shape. that is a look at the top stories in the news. our focus now to veterans and small-business ownership. a recent survey commissioned -- a recent survey finds that veterans are emerging as major players in the buying of small businesses. group general manager joins me now from our san francisco bureau. thank you for your time. are you surprised by this economic surge that is involving america's vets? why a small business ownership so appealing? >> not surprised by it. it is something we have been waiting for for a long time.

largest marketplace where people buy and sell small businesses, we have our finger on the pulse of activity. it peaked in 2008 and collapsed in 2013, there was a fantastic recovery. transactions were up 49% year over year to hit a new record high. 14% higher than what was seen prior. >> who are these veterans? what does the demographic look like? understand that better ourselves. we looked into small business buyers and sellers. we looked at veterans. veterans are very well represented, representing 13% of all small business buyers in the united states. >> what could other entrepreneurs learn from the model being developed at the veterans? your study found that many vets want to acquire a second or even a third business.

>> that was quite interesting. veterans, 25% of them are in the market for another business as a means to expand their existing business. that is 25% higher than the general population. that was very interesting. >> curtis kroeker joining us from san francisco. highans still deal with levels of unemployment and those who served after 2001 are having an even harder time. it are the challenges that are interface when they leave that disciplined environment of the military -- that our veterans face when they leave that disciplined environment of the military? it is a real travesty after the services they provided our country. many of them look to entrepreneurship as a means for a job and income. one of the things we found that

was very encouraging was those who do fare very well economically. nationwide, veterans, 52% of them, have an income below $50,000. versus those who pursue entrepreneurship and go to buy a business, only 14% have an income below 50%. 37% have an income between 50 and a hundred. 22% have an income between 100 and $150,000. it shows what buying a small business can do in terms of making your future. that is where veterans play well because they are natural entrepreneurs. they are leaders, they are disciplined, they are structured, determined. those are the things that are critical to be successful. gethe skill set these vets when they are serving, how is that helping them to transition?

some of them are learning trades and learning skills and the military that folks in civilian life do not have. >> they learn technical skills. those can be applied within the workplace in general. it enables them to bring a level of technology that others do not have the opportunity to do. --a website if since that's if some vets want some information? >> a variety of educational materials we offer. including a book that helps someone with buying a small business or selling a small business. it helps veterans become successful franchisees. joining us from san

francisco, it is a pleasure to talk to you. .> thank you very much >> we will talk to the outgoing cftc commissioner and discuss what regulators from all over the world are doing to prevent another global financial crisis. stay with us. ♪

elon musk hasws, been pushing to sell cars directly to customers bypassing dealerships in the process, the dealers are firing back with lawsuits claiming the practice violates state laws. a new jersey commission has passed a motion to block direct car sales. tesla says the new jersey commission move would shut its doors. the commissions motion passed unanimously. tesla discovered yesterday that

this rule was under review. we will continue to follow this story. shares are dropping, down over 1.5%. u.s. and international regulators are meeting in florida this week to discuss how to coordinate rules in the wake of the 2008 unanswered crisis. delay's aren't place and are 2008 implemented -- financial crisis. mr. children, welcome to "bottom --mr. chilton, welcome to "bottom line." page thatn the same could shape global markets? >> great question. the answer is some of them are more onboard than others. everybody is moving forward tom

abuts on that a little -- everyone is moving forward, but some at a slower pace. that is why we have these meetings every year, to ensure harmonizing their rules and regulations so we can avoid a circumstance like we saw in 2008. international resistance to the united states leading this effort? some officials still blame a lax regulatory environment in the u.s. for starting the economic meltdown? >> a little bit of that, and i think that is why we went first. we jumped in the pool first with the financial reforms contained in the dodd-frank loss in 2010. most of our regulations are done. the rest of the world will come on board ultimately. i use the analogy of that old

movie with kevin costner, field of dreams. if you build it, they will come. if the u.s. builds our regulations and if the eu builds their regulations, the rest of the world will,. -- the rest of the world will come. >> where is the balance? that is the million-dollar question, how do you figure out what the balances between going , being overzealous, and doing enough to protect markets? that is what we have tried to do . once in a while, we may have overstepped a little bit, but we have dialed it back. it changes all the time. technology is changing. at one -- and what goes on in is changing. we have to keep an eye on them

all the time. >> the story at bloomberg, the sec is investigating whether currency traders at the world's biggest banks distorted options and exchange traded funds wire rigging benchmark foreign exchange rates. how big a deal is this investigation? ? >> i cannot comment on any investigation. i sound like a bureaucrat. what i can tell you is libor was a huge deal. $1.7 billion in settlements. not including the department of justice and the financial services authority. it is a huge deal because the libor rates impact just about everything people buy on credit. if there is something going on in foreign currency, that would be a huge deal also because that impacts so many people and so

many businesses. it is something that people need to take a look at. 24/seven the job trying to look after these markets. when we see bad actors, we will go after them. how can the cftc and manage its position as an enforcement agency in an age of decreasing budgets? we have been doing more with less for five years now. without the appropriate oversight, without the funds, and president obama requested less funds then he sought last year, it is a big problem. there are bad guys who will get away because we do not have the cops on the beat. we will not be able to survey a the markets like we would like to. at theare leaving cftc

end of next week. what was your greatest challenge at the agency? >> the greatest challenge was dealing with the intersection between wall street and washington. that confluence of powerful powers is something i have never witnessed. the money with the policy and it has been a tough mix. >> what are you going to be doing? >> i will be writing a book called "theft." always a pleasure to have you on. thank you for your time. the euro copter, but it is made in the usa. ♪

>> we have a new bloomberg

series called made in america. the first installment is about eurocopter. it opened a facility in columbus, mississippi, in 2004. ♪ >> i came to work for eurocopter because i like the product. i have been flying for about dirty one years and have flown -- about 31 years and i have flown in a lot of different models. i like the power. the largest in the united states in terms of sales. manufacturer and we market and sell aircraft globally. the advantage for the u.s. market it is the largest

helicopter market in the world. having this facility here is a tremendous advantage to get to know your customer, be close to your customer. we're the largest helicopter provider to the department of homeland security. we provide aircraft to the border patrol, the u.s. coast guard. tourism used in the industry a lot. is a french-german company. we decided to open the mississippi plant. we started to invest in this mississippi plant before we got any government business. later, we wonars the army contract. received a basic airplane

as you see here and then we move into electrical were all of the wiring and components are installed in the aircraft. engines, one of the most expensive parts of the aircraft, they are provided to us by vendors. we are moving into our testing area. it is where we install the final flight control hardware. then we move into flight operations. >> we love mississippi. mississippi is a great state to do business. we have low cost of power and energy year. qualified workforce. we do not have a whole lot of pressure from our competitors. it is a great partnership. >> we have breaking news. twitter is back, step away from the ledge.

something was technically wrong when it went down earlier this afternoon. stay with us. ♪

>> get the latest headlines at the top of the hour on bloomberg radio and on bloomberg.com. that does it for this edition of "bottom line." i am mark crumpton. i will see you tomorrow. >> it is 56 past the hour and

let's get you caught up on where trading.e i am julie hyman. we have declines across the board. the s&p 500 touched a record, but has since slid back. continued concerned about growth in china. genetics. a look at sinceing the most december. up,es of jcpenney are citigroup upgraded shares of the struggling department chain. jcpenney is not the only retailer making news today. we got earnings from american eagle outfitters. joining me now to discuss the retailers is our industry analyst.

>> $65 a share because jos a. bid to abandoning its buy eddie bauer. kenny's two companies really make nice? what is -- can these two companies really make nice? >> the fighting was just to get the right price. men's wearhouse offered a bid in the low 60's a month ago. eddie bauer came into the picture. they said they would be willing to go to $65 a share. they are pulling back from the eddie bauer deal and men's wearhouse will go ahead and buy them for $65. there is not much happening for the consumer. you are going to have men's wearhouse stores, you will have jos a. bank stores. will the culture change? some shifts in the way they do business? possibly.

when you take out a competitor and you have them be a partner in your business to help grow it, it has to be a good thing. still -- is there still value in both of these brands? ask they are keeping the names as they are. they're going to recognize it is all on the -- the consumer will not be able to tell. showing moreagles pain in that space. urban outfitters seeing continued struggles. what did these guys need to do to turn things around? ens need to start spending again.

if you think of yourself as a teenager, what has happened in the apparel space that has caused you to redo your whole wardrobe? very little. >> i imagine that teenagers are pretty web savvy. sales are down in the high single digits. web-based sales are up double digits. >> thank you so much. againl be on the markets in 30 minutes. street smart is next.

>> i am trish regan and you are watching the most important hour of the session. stocks and commodities are sliding over concerns about china. me. miller, alongside >> it is a pleasure. good to have you back. we missed you yesterday. all by myself.