," welcome to "lunch money where we tie together the best stories and video in business news. i am adam johnson. in motors, gm hits another speed bump. congress is investigating the recall that has been years in the making. in mobile, forget the family plan. softbank wants to get at&t and verizon on a weight-loss plan. nation, snowden's new message. the nsa whistleblower wants tech giants to keep people safe. combs wantsl sean his music television. in sports, global knockout. .fc takes over the world

170 countries and counting. we are kicking it off with what everybody is talking about. the twist in the search for the malaysian airlines flight 370. >> one of two passengers who traveled on stolen passports was from iran. they say the man had no links to terror groups and was trying to emigrate to germany. >> that is right. and purple and malaysia authorities say the other passenger with a stolen passport was also iranian. they said the two were probably not linked to terror groups. the fact that they had been traveling with stolen passports led to speculation that the disappearance was linked to terrorism. investigators still don't know what happened to the plane. >> it is going to take time but this will be found. there is a large search area. it takes time to cover it. there is two bonds of activity. one is the search. the other is looking at everything behind the scenes of this flight. they are looking at any data

that might be available. these aircraft typically sell back -- send back engine parameters. i am sure they are pouring through those files. >> i have a question. we live in an age of gps. any number of technological advancements to find lost items. how does an airline lose an entire airplane? explosion atphic altitude disrupts the electrical system so that it can't transmit. ,ost other serious incidents the pilots still have power. there is still radio communication. they can communicate. it is extremely unusual for one to just disappear. that requires something catastrophic to happen in the air. >> like the air france -- >> air france also in a very remote area. this is a less remote area. these things happen from time to time but they are extremely rare. >> the air france crash happened

in deep-sea. the search for the malaysian air flight happening over shallow water. shouldn't that help? >> it will make it much much easier to find the black rocks -- black boxes. they have a thing called a payinger -- a pinger that sends out a signal. the waters are in the hundreds of feet range instead of thousands of feet. it increases the probability of finding this accident. >> does in that black box have a device that helps locate it? pinger. called a it is a signal that will emit for a long period of time. it can be heard under water for miles. there is a good chance that they will find that very soon. that unthinkable that in shallow of water they would not find the black rocks is -- boxes. >> quite a story. how do airlines handle situations like this?

we asked the former ceo of american airlines. incidentstory of teaches us not to speculate. as these things happen, it is almost always true that in the end, what occurred is different than anyone would have speculated. itself, of the incident the only sensible thing to say is we do not know. >> we know that boeing officials have traveled over to asia. at what level discussion is taking place between boeing and malaysian airlines given there is still so much mystery about what happened? >> you can be sure that the chief executives of both companies are directly involved. this is clearly something of great concern. lots of people's lives involved. concern about the

airplane and about aviation safety in general. i think it is very important to keep in mind, this is one incident in an industry which has built an extra ordinary safety record. it is an incident about which we know nothing. when we find the wreckage -- and they will find the wreckage, and when the wreckage is reconstructed, we will know what happened. it may well be many months before those things occur. hearingo mary barra is -- handling an issue of her own. congress now investigating its biggest recall. the latest from corvette designers. they want to map your backside. it is back to earth for american and russian astronauts. they floated into a capsule for the trip home. they have been in about 166 days. 3.5 hours later, here they are touching down in kazakhstan. rescue crews reported all three

are in good shape. gentlemen, welcome home. ♪

" onhis is "lunch money bloomberg television. we are also streaming live on bloomberg.com. i am adam johnson. in motors, big news out of gm. congress is launching an investigation as to why the automaker took 10 years to recall 1.6 million faulty vehicles linked to 13 deaths. gm plans to conduct its own investigation. the lawyer who probed lehman

brothers back in 2008. trafficonal highway safety administration has given them until april 3 to explain the decade-long delay. the company culture of slow information from the engineering ranks to the corner office. gm began investigating reports of faulty switches on in 2004. on march 4, the ceo said she didn't learn the situation until "of you weeks ago." industry experts explained it this way. at the old gm, people didn't push bad news up the chain. here is jeff green. >> ever since they emerged from bankruptcy, that is what they are trying to do. change the way they are thinking, speed things up. toyota had to look at the same thing after their recall. there is a lot of bureaucracy in automakers. engineers like to look at data. they like to think about things. they like to study and act once they know all the facts. in this case, it took them too

long to know all the facts. we have to figure out why. has tohe top, barra change the culture of the company. in engineering, they just have to change the seats of the corvette. for decades, the interior of the sports cars had a less than stellar reputation. a new team which includes a designer fresh out of grad school promises great things. >> i am matt miller. as you can see, i am slightly terrified but also having the time of my life doing doughnuts in a 450 horsepower corvette stingray. my driver is an engineer behind the car's new critically acclaimed seats. do you like the seats? >> unbelievable. the top ofs were at gm's priority list when

overhauling the legendary sports car. the old ones were universally criticized for being cheap and flimsy. >> the important thing about a it is your main communication with the road. that is what is communicating what the car is doing. >> one of your main jobs is to really be a butt guy? >> you have to look at the population. you have buyers from females all the way up to 95% males. you are fine-tuning where you want that. >> to make sure they got the seats right, general motors created the c drive team comprised of employees of all different shapes and sizes. in a special lab, a digital pressure mapping system records 4600 points on a drivers back and butt. chevy used the data to create a seat optimized for comfort and

support. >> what makes them so much better? >> the previous generation didn't have as much structural integrity? >> the new seats are molded in cast magnesium like the high-end european peers ferrari and maserati. closer tothe vette superstar status. >> it has always been a car i can take a tour work on monday and on saturday, blast around the track. >> don't go my cameraman. >> that looked fun. onto aldi which is owned by volkswagen, the german auto manufacturer takes the number one spot from bmw. this is a big deal, selling the most luxury cars in the world this year. number one was originally the goal set for 2020. i congratulated the ceo this morning. >> please don't exaggerate.

>> fair enough. it has only been two months. he has another 10 months ago. >> there is strong competition within mercedes, bmw and audi. this type of competition makes us even stronger in the premium world. nearly 80% of the premium business is done by the german industry. when a customer comes to the dealership, what should he recognize without he? audi is the most progressive brand. i would say we have the best product with the highest quality we can offer to the customer. the customers tell us that we are number one, not we tell the public that we are going to be. >> i want to ask you about pricing power in china versus pricing power in the united states. >> audi is at the moment premium brand number one when it comes to follow him in europe. -- the volume in europe.

it is premium brand number one in china for a lot of years. we are aiming for the next pattern of growth in the united states. as far as i see the future of audi in the united states, there is a big growth potential for us. the brand is in a good position. we bring a lot of products to the united states. we believe that we can grow further up. >> here is something you might not know. the surname of the company's founder means "listen" in german. when you translated into latin, audi. the founder of another company is on a mission. softbank wants to win american telecom into shape. his interview with charlie rose, coming up next. ♪

>> in mobile, masayoshi son's grand plan. who is my savior she son? japan's richest man. -- who is masayoshi son? japan's richest man. he is the founder of softbank with stakes in more than a thousand companies including yahoo! japan and alibaba. he is bringing his message to washington this week. he shared his vision with charlie rose last night. the internet highway is the most important infrastructure for the 21st century. clearer than any other infrastructure. u.s. is number 15 in

the world. out of 16, number 15. >> what measurement? >> speed. wasonly company u.s. beat philippines. >> they didn't beat south korea, japan? >> no, many other countries. the u.s. was beaten. situation forugh the 21st century, the most important infrastructure, u.s. is lagging behind? u.s. has been number one for infrastructure almost for everything in the 20th century. television, almost everything. >> enter the u.s. mobile market, softbank bought sprint or nearly $22 billion last year. now masa once sprint to buy

t-mobile. that would combine the number three and number four carriers in the u.s. to take on verizon and tnt -- at&t. >> they're happy with where they are. they make a ton of money. free cash flow and dividends back to the shareholders. they are very comfortable where they are. i don't blame them. if i were in their shoes, i would be happy. because they are in such a happy position, without facing a real competition from some strong enough challenger, they can relax. >> so you bought sprint and now you want to buy t-mobile. >> if we could, but we have not agreed any formal agreement. >> what are your chances? >> i don't know. we have to give a shot. >> is it money or is it something else? i am not here to talk about

any detail of that situation. >> why not? general -- >> you have to make a deal. >> we would like to make the deal happen. there are steps and details that we have to work out. >> steps and details, namely regulation. -- thinklators drink shrinking the number of wireless carriers might hurt competition. regulatorsng with and lawmakers, trying to make the case that less is actually more. >> i need to become a heavyweight. it is a heavyweight fight. >> they will squash you. , and they would ignore us. so they can stay profitable. i want to make them fight back so they also become muscle

instead of fat. >> competition. >> that is good for united states. >> i like the metaphors. masa has had success growing softbank in japan. when he bought vodafone in 2006, the carrier phased two larger rivals. it now has up to 25% of the market. softbank has tapped hollywood for help to promote the brand. ♪ >> that was awesome.

tommy lee jones, cameron diaz, brad pitt. if i were at&t and verizon, i might be worried. >> what is more important is the information revolution. that is more important. to create a new lifestyle. bringinghelp information revolution to mankind, i don't have to do everything. i can bring everybody else's talent. i can bring the infrastructure. >> ring the roadways. >> i don't have to create a ferrari or honda. i can create a highway for all the beautiful automobiles. create the entire ecosystem for the automobile revolution. that is what i am trying to do.

i am bringing information revolution. for these internet devices, the infrastructureas is not good enough. that is a big problem. >> you can hear more from us he or she son -- masayoshi son. that is tonight, charlie rose, 8:00 p.m. and 10:00 p.m. right here on bloomberg television. edward snowden speaks. his message is too tech companies. we have the details coming up in nation. ♪

\ [sirens] >> that is a wailing siren in a town along japan's coastline marking the moment the earthquake and sue niemi hit three years ago. more than 18,000 people were killed. that ceremony was one of many around the country to mark the anniversary. in tokyo, the prime minister led a private service for the

victims. venezuela, small groups of antigovernment protesters kept up the battle with police. demonstrators threw objects, police fired tear gas. clashes have been an almost daily occurrence. 21 people have died so far. on the disputed peninsula of crimea, a pro-ukrainian rally outside parliament. the demonstration comes as lawmakers propose a plan to make crimea and independent state. the vote is scheduled for this sunday. in nation, edward snowden has a few things to say about internet security. he spoke via video chat from 3000w to an audience of gathered at sxsw. it was rerouted through seven different proxy servers trying to link -- to conceal his exact location. -- you should only

collect the data and hold it for as long as necessary for the operation. -- you you are google or still get the value that you need to run your business. the principal technology officer from the american civil liberties union moderated a panel and spoke with the bloomberg west team on what consumers can do to make sure the services they are using are protected. >> the rule of thumb really should be, how much am i paying for the services i am using? if the web browser you get is free, the mobile operating system you get is free, think about how the companies who make them are paying their developers. there is no such thing as a free lunch. services thatant are going to put their privacy first, they are going to have to

start paying for them. otherwise, these companies are going to monetize their data. they're going to collect their information, hold onto it and use it in a way that is not in line with the best interest of the people whose information is being collected. >> snapshot. >> it was born out of one simple thing, the idea that you could end a picture and it wasn't permanent. that may not be perfect but that is why snapchat has become popular. we have this concern about security. snapchat says it is only left for 10 seconds. that has made snapchat become a global phenomenon. >> is snapchat secure? >> if i look at a picture, i can have another image. i can take a picture with another phone. >> you can also screen shot it. >> it is not perfectly secure but it is the perception that it is not permanent. google has been saying, we are not going to hold your data forever.

that is one of the things that snowden was saying today. companies should be able to hold your data but no longer than necessary. that was a critical point that he made today. >> staying with technology, microsoft out with a new game aimed at boosting sales of the xbox. matt miller takes it for a test drive coming up in pop. we are going to hear from the ceo of ufc on his quest for global domination. barry bonds is back in a baseball uniform. he is an instructor at the san francisco giants training camp in arizona. it is the first time he has put on a giants uniform since his final game in 2007's final game when he broke hank aaron's record. ♪

" onhis is "lunch money bloomberg television, also streaming live on bloomberg.com. i am adam johnson. the subscription seeming -- is in a secondce round of financing. cristina alesci talked to betty liu about where this money came from. >> rich people, for lack of a better term. you have mark rowan, the cofounder of apollo. probably not as well-known investors. very wealthy people are investing. >> they think they can beat others because? >> they think they are cooler. at the end of the day, these are the people that brought us the really cool headphones that everybody walks around with. they have a bunch of music executives that are running this company.

people that make this product cool. to their credit, they have built up a very strong catalog of songs, 20 million songs, put them on the same feed as spotify, and they are rolling out more services. analysts say that you need between 5 million and 10 million subscribers to make a streaming music site profitable. we don't have those numbers yet, but you would expect that if and when they come out with those numbers, they will try to reach those figures. >> onto another hip-hop entrepreneur, sean combs has bid around $200 million for cable channel fuse. if he is successful, he plans to turn it into an extension of his startup. in an interview, he explained why he started the network in the first place. platformdoesn't have a

like it used to. back in the day, they use to the american bandstand. before that, there was ed sullivan. there was sole train. there was a place you could go to for music, to tell your story. ourselves going to "dancing with the stars" or performing on "good morning america." music is getting consumed at its highest rate ever. at concerts are at one of the highest rates ever. i saw the opportunity. >> from music video to video games, microsoft new game hit the shelves. the company hopes it will catch up to sony's playstation four.

matt miller gave it a test drive. >> i have been awake all night. i napped for like an hour. >> but those glasses are part of the game, right? >> no. [laughter] i went to gamestop at midnight and waited in line for a long time out in yonkers, which is not sort of the metropolitan hub of new york. but it was packed. after about 45 minutes, i went to best buy instead. it was empty. i walked in and picked up this game along with a number of other contraptions. game that a good around 6:30 this morning, i gave serious thought to quitting my job and staying home and playing until i was hospitalized. a lot of people i think will do that. >> that is a lot of guys' dream. >> the effects on the global economy of a game like this are

probably a mess. >> i hear that there are gamers out there who make lots of money just playing video games. >> there are gamers out there -- a lot of gamers have run into health problems because you lose track of time. you forget to hydrate. you forget to the and you eventually pass out. happened to a kid in ohio. it happens to people all the time. this game, i want to point out, is the most important game for microsoft since the original halo came out in 2001. >> from fighting robots to fighting humans, the ceo and cofounder of ultimate fighting championship is going to tell us about his plans for global domination. we are going to hear from the new commissioner of the big east conference. that is also coming up. march madness. ♪

" onhis is "lunch money bloomberg television. we are also streaming live on bloomberg.com. i am adam johnson. a lot happening in sports. football's free agents can sign for the 2014 season. michael vick, eric decker, just some of the players who stand to benefit from the 8.1 increased salary cap this year. a totaln now carry payroll of $133 million. start practicing, kids. in college sports, big east commissioner val ackerman talked about her league's changes. our changes came together in large part because the opportunity to enter into a long-term agreement with fox sports presented itself. stream that revenue

was very important to their future. it was perfect timing. fox was looking to launch a new national sports cable channel. fox sports one launched in 90 million homes act in august. our group of schools was looking to come together as a lead. the timing couldn't have been better. we have now a 12-year deal with fox. it provides a wide coverage of big east sporting events, mostly men's basketball but women's basketball and other sports as well. fox is going to be televising many of our conference championship events, not just basketball but other sports. they are promoting our conference heavily. they have been a terrific partner. >> so you followed the money a little bit. one of the controversies recently has been whether college athletes should be paid. your reaction to that. >> it is a complicated answer. you need it for this.

it is legal implications. there are title ix issues here. there are practical issues, state law issues in some cases. that forl view is non-revenue-producing sports, most of college athletics, sports like the one i played on women's basketball back in the day or field hockey or track and field, they don't produce revenue. the athletes are basically getting their education paid for , in some cases completely. >> and it wouldn't happen the other way? >> it wouldn't happen any other way. it made it much easier for my family to get a full scholarship. for those sports, it is difficult to make the connection to being a salaried employee and having an opportunity. for other sports, i do think it is -- it requires a lot more thought to think about how those fees is -- those pieces fit together.

many smart folks are trying to figure out how student athletes can get a better range of benefits than they are getting now. >> ultimate fighting more your speed? two fighters in a cage using mixed martial arts? tell us more. they go flying like he has magic in his hands. >> alternate fighting is not for the faint hearted. kneeing, punching, kicking and grappling are all allowed. it is a seriously violent sport that is becoming seriously popular. ufc is one of the fastest-growing and most lucrative draws in entertainment. the las vegas company is hosting 49 evidence this year. the fights are broadcast in around 150 countries and territories to nearly one billion homes. north america is the biggest market but brazil is where the

growth is. in this football-met country, .fc is now the number two sport it draws as many as 40 million tv viewers. then. -- viewers per event. ultimate fighting hopes to challenge football as the world's global sports. game can beautiful flipped by a bloodsoaked sport remains to be seen. >> our top investors taking advantage of ufc's global growth? >> the way you look at it is that we are the league. it is not just one specific team. we are the league. think about the value of the premier league or the nfl. that is really what we are striving for. the ability to scale international growth, international media rights, we are just at the very beginning

of being able to exploit and generate revenue for this product. we think we have a tremendous amount of room for growth. how investors can participate in that, we are a privately held company. it is owned by me and my brother. there are other ways. we are getting ready to launch a game with electronic arts. that will launch at the beginning of the summer. there is other companies that we are associated with. >> why not ipo? >> the great thing about this business is we don't really need capital to grow it. i have run a public company before and typically when you raise equity capital is because you are funding rough. our business generates a lot of free cash flow. we don't have a lot of capital investment that we need. >> how is this for competition?

german table tennis star timo boll versus a machine. today's mystery meat. ♪

we are coming up on 56 at the hour. loomer television is on the markets. i am julie hyman. let's take a look at where we closed today. a down day for stocks after earlier hitting the record.

the s&p 500 ended the day down .5%. the dow and the nasdaq also falling. commodities related stocks leading the way down. just as of last thursday, stocks are outperforming bonds this year. this morning, betty liu asked a chief architecture and adjust why that is. shift from the equity move we had in 2013 where it felt very easy and commonplace to see stocks move higher. we are getting a lot more volatility and the market we had prior to 2007. more volatility and more churn. we all thought bonds were going to go right to 3.5%. it hasn't worked out that way. it will keep interest rates fairly low. clearly --re >> it is going to feel like a bull market in 2013 -- 2014.

>> betty also asked net about one of his favorite sectors, financials. >> if the economy does accelerate in the back half of the year, the curve will stephen. that is generally good for bank profits. financialsh bonds, just started to outperform last week. >> that is a big if. see are the signs that you that there will be? >> whether you love or hate the weather excuse, it is kind of here. investors give the market a pass as far as q1 earnings. we don't have a lot of clear signals. the labor market is not giving us a clear green light on this back half of the year economy. >> i want to bring to your attention an op-ed from the former ceo of pimco. he wrote today in the financial times. we have to think about policy makers as well. saying, he is a sensibly

that policy makers squeezing the toothpaste. they have got so much ammunition for the markets. he says -- is there a possibility that we may see too much of a reaction from policymakers? >> it is absolutely my number one concern for the market for the year. bull markets don't die of old age. they die from policy mistakes. usually at the fed level or the government level. most often, by monetary policy mistakes. i think mohammed is pointing to the possibility that you see too

much tightening to quickly. at the same time, a slowdown in the economy. the market begins to roll over. >> some of the risks they were talking about patent served -- haven't served to derail the rally we have seen in these markets. for on the markets, i am julie hyman. ♪