tv Lunch Money Bloomberg March 14, 2014 7:00pm-8:01pm EDT
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>> welcome to "lunch money," where we tie together the best stories, interviews, and videos in business news. in world, malaysia expands the search for the missing jetliner. looking into possible pilot and crew involvement. in africa, companies trying to break into the new frontier of investment. apollo, all you can eat. the private equity giant that just bought chuck e. cheese wants a piece of dave and busters. happy friday, 3.14 occupies a special place in our hearts. megadeth, mega-successful.
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telling us about the american success story. kicking it off with what everyone is talking about. a pivotal few days ahead of the international standoff over ukraine. this weekend, residents of crimea will vote on whether to break off from ukraine and become part of russia. the u.s. is calling the referendum illegal. if the vote goes through, the crimean premier says the region would join russia as early as next week. john kerry meeting his russian counterpart sergei lavrov today in london. here is secretary john kerry. >> we have a lot to talk about. i look forward to the opportunity to dig into the issues and possibilities that we may be able to find about how to move forward. together and resolve some of the differences between us. we look forward to a good conversation. >> in ukraine, the situation not
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getting any calm her. >> violence in the last 48 hours in the air of donetsk. military exercises on the mediterranean. we had a statement about the violence in eastern ukraine suggesting that russia reserves the right to take people under the country's production. this could threaten a military push. >> there is conflict about this in washington. >> the house of the senate are disagreeing over competing versions of this one billion-dollar loan guarantee for ukraine. everyone agrees that should happen but there is a difference of opinion over imf quotas. that held things up, they are on recess for the week. no aid for ukraine at this point even though everyone thinks it should and will happen.
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>> one person who thinks it should happen is john mccain. he really feels strongly about this one. >> right now, as we speak, vladimir putin is either planning on or contemplating an invasion of eastern ukraine. incredibly, incredibly, there will be an objection from this side to this legislation when the people of ukraine are crying out for our help and assistance. what has happened? where are were priorities? imf, no matter whether it is fixed with this legislation, is that more important than the lives of thousands? you can call yourself republicans, that is your voter registration. to not call yourself regular publicans. ronald reagan would never go and let this kind of aggression go and responded to. we know what vladimir putin is about. russian military forces are
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massing on the border but it is more important that we get campaign-finance regulations fixed. i have been embarrassed before on the floor of the senate. i have not been in tears of this way. the members of my own party, a shameful day. i will not object. >> strong words. one plays ukrainians can count on for assistance, the world bank. it has pledged more than $3 billion in aid. world bank president jim yong kim joined "market makers" this morning. what strings are attached? >> we have about 3.7 billion dollars worth of programs in ukraine already, including two in crimea. this is the next wave. it is going to be providing basic services -- sanitation, heating, health services. i just met with the prime minister what he was in d.c. he is facing a difficult situation. for us to move forward, we need to see some committed to a
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reform agenda. they passed an impressive reform agenda. the magician will be difficult but this is a government that even in the midst of difficulties, they will do things like remove fuel subsidies. they are moving forward and we are going to be able to move forward fairly quickly if they continue on that path to being committed to the reforms. >> dr. kim, how can you be confident that the money going to ukraine will find its way to the right people and the right programs? and will not, as has happened, be siphoned off into private accounts? >> in terms of the money we provide, we have a whole auditing system. 20 years ago, my friend and
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predecessor made it a top priority to fight corruption. we have audit mechanisms and we can follow our money. what happens with a lot of other money, we do not know. we have pretty good mechanisms and we think we can follow up so we know it will get to the people who need it. >> even given how opaque that part of the world is? >> we work in a lot of opaque places. the good news for us is that we have for over 20 years developed of this system. we follow money as closely as we can. we have auditing mechanisms and people on the ground. if they are committed to reforms, we can move and we will watch carefully the money that has to get to the people who need it. >> from ukraine to the other big international story, malaysia. more theories and no answers. that is next. if you are looking to travel, we will show you why south africa is the place to visit. ghana is the place to invest. check out this desperation heave at a minnesota high school game. unbelievable. this was at the end of the fourth overtime. gave them a win. here it goes. oh, yeah. that is beautiful. [applause]
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bloomberg television. streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. in world, it has been almost a week since malaysian air flight 370 disappeared with 230 nine people aboard. few clues and fewer answers. >> the cabin crew or the pilot may have been involved in this? >> we are looking at that possibility. [indiscernible] >> malaysian authorities looking into the possibility the pilot or crew were involved, even intentionally. >> can you explain whether you
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have any evidence to confirm and if so -- the system was shut down systematically. can you tell us whether or not -- >> there are four or five possibilities we are exploring. it could have been done intentionally, it could be done under duress. it could be done because of an explosion. i do not want to go into speculation. >> two systems -- >> we are looking at all possibilities. >> and the pilot? >> the malaysian transport minister saying the police will search the pilot's home if necessary. the search for plane is ongoing. even by crowd sourcing images. with 13 countries involved, it is like looking for a needle in a haystack. this shows a 2000 mile radius around the intended flight path from the point of last contact. if the aircraft flew into the fill tank was empty, it could
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have gone as far as australia, even into the south china sea. that area is four times the size of the continental u.s. is there any chance, any chance this plan could be hiding somewhere? >> i do not believe so. i think the directions it is flying in the places it is flying over. the fact that it was on radar, i do not think there is any way it can land without the population knowing on some of those small islands. most of them cannot handle that size of an airplane. if they did, it would be something that had never happened before. just the noise of the aircraft landing on a small island like that, there are only two or three of them that we have landing pads and landing strips large enough. >> that man would know, he is john magaw, founder of tsa.
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he is a former secret service agent. also, former white house advisor richard falkenrath. >> the aircraft did not land at some airport nearby. this is not like in "lost" scenario and the people are on a beach. we know where all the airstrips are in that area that can handle a jet of this size. you've really are down to some form of crash. in the ocean somewhere. it needs to be found. the questions of -- the scenarios, none of them can be ruled out. who did this and why they did it. it is too early to say. the data is too fragmentary. >> back to the tsa founder, where do we go? >> go to the very beginning, you have to look at everybody who touched the air force since it landed in kuala lumpur. all those things have been
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examined. now that you have 2 transponders turned off, it flew at a lower altitude, they were still communicating with the ground. that is a scenario, a head office is where you put all the investigative things together. this leads you to assume it has to be one or both of the pilots. >> someone else who also knows what is going on on an airport is laura gladding, president of the association of professional flight attendants. she spoke to the "market makers" team this morning about why the transponder would have been turned off. >> the only reason is if there was an electrical problem, perhaps it was overheating and there was a safety concern. even then there would be communication to the ground that there was a problem with electricity and that they needed to turn the transponder off.
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that is an indication that there was something very unusual happening on the airplane. we are just going to have to wait until we can get more information from the black box to learn what happened. >> in this day and age of locks passenger doors and the post-9/11 era, what options do flight attendants have. the other crew on the plane come outside the cockpit, if they figure out that the pilot is up to no good? >> well, we cannot speculate what happened. >> i am creating hypotheticals here. that is a realistic scenario. if the pilots, the "bad guys," just talking about scenarios. the crew recognizes this. maybe does not know that the transponder has been turned off. what do you do? >> we do not have access to the cockpit door. they're very well guarded. it would be impossible to get into the cockpit.
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we would have to try to do all communications through the interphone. not knowing what happened, i do not know what the procedures would have been. i will tell you i feel very badly for the families of the crew and the passengers. there has been so much speculation and so much new information coming out of time. in the u.s., we have the family assistance act, that would ensure all the passengers' families were well taken care of and informed. what i am seeing is that they are heartbroken. the information they are getting on a constant basis is more reason for concern. speculation it could have been the crew has been difficult on crew families. i hope we get to the bottom as soon as possible to give these people some peace. >> families of the passengers have been putting pressure on the malaysian government. relatives of chinese passengers want malaysia to invite the chinese navy into the strait of
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locomotives as part of a $3.2 billion infrastructure programs. one of the country's biggest ever. infrastructure is good for industry and supports tourism. let's take a trip to south africa. >> this is element house in cape town, south africa. if guests have included oprah winfrey and kim kardashian. for nearly $5,000 a night, it comes with its own butler. while south africa's growth rate fell to just below 2% last year, the lowest since 2009, here in the cape, tourism is up, helped by the falling value of the rand. the currency lost 26% against the pound and 19% against the dollar last year. bad news for some, good news for tourists wanting to stretch spending. international arrivals to cape town rose 6.7% in december to almost 160,000.
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arrivals for the whole year are up. the city's 22 5-star hotels are enjoying their best season since the 2010 fifa world cup. authorities in cape town believe tourism has the potential to double in the next five years. as the rand remains weak, they are hoping international tourists will spend big, providing some upside to the sliding currency. angus bennett, bloomberg. >> very inviting. 8 of the 20 fastest-growing economies are in africa. the u.s. government has been making a big push for american companies to do business there. trying to catch up with china, which has established a foothold. the u.s. investor to ghana spoke with mark crumpton on "bottom line." >> the chinese have been very active in africa during the past several years.
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i think it is a question, for some reason we have been a little late in turning on the potential of a resurgent africa. under president obama and secretary kerry, we now have a firm posture that we have got to be more active in the continent. just because china has been added and other european powers, does not mean there is not room for us. in fact, i think even at this point, the american brand has a tremendous amount of credibility. >> and money is being spent on those brands. in nigeria, online shopping is booming. here is our bloombergtv africa partner. >> more than a quarter of nigeria's 170 million people are now internet users. the world bank estimates that in the last four years alone, a
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flood of online shopping website in nigeria has boosted the country's gdp purchasing power by 22%. the nigerians spent about $6.3 billion a year on clothing alone. more than half of the consumer market. $86 billion annually. a large section of nigeria's $275 billion economy remains -- goods are bought offline from large, informal markets like these. or more recently, the foreign shopping malls around the country. a well-heeled minority prefers to buy goods from the u.s. and europe. online retail store jumia.com recently raised 75 million dollars in fresh funding to expand its domestic market.
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the vast majority of tech startups fail. a key issue is the lack of secure online payment facilities as the result of nigeria's notoriety for online fraud. another tech success story enters nigeria's market with a solution to online payments. >> we only deal with one type of fraud, people who have gotten debit cards illegally and try to use it on our platform. security is something we take very seriously. it is rings of security. we guarantee our customers if you keep your pin number suits, your money is safe. >> analysts say these are too few in a market where information accounts for just 2% of gdp and where 99% of urban dwellers have mobile phones. >> watch more of bloombergtv africa online at bloombergtv
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bloomberg television. also streaming live on bloomberg.com, your tablet, and your smartphone. i am adam johnson. today's moving pictures, where the video is the story. passengers scrambled to get off a us airways jet in philadelphia after the pilot had to abort the takeoff. look at this picture. the scene on the ground right as a passenger was getting out. the jet blew a tire as it took off, collapsing the nose gear. the pilot brought the plane down but the damage caused it to skid down the runway. incredible images. in brazil, a march to express anger over money being spent on the world cup.
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the organizers of the june event are behind schedule. 3 of the 12 stadiums needed are not finished. transit and infrastructure projects are months behind. veterinarians from the san diego zoo teamed up to perform a cesarean section on a gorilla. the mother went into distress during labor. the emergency procedure was a success and a 4.5 pound baby gorilla was born, a little girl. in deals, apollo group loading up with pizza. all the pizza, salad, and breadsticks it can eat. they bought chuck e. cheese last month. that deal was valued at about $1.3 billion. apollo is hungry. they want a bite of another chain, mixing food and games. we are talking about dave and busters. two people with knowledge of the matter say apollo is weighing a bid for the chan, currently
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owned by another private equity firm, oak hill partners. alix steel and cristina alesci caught up with dave of dave and busters yesterday on "taking stock." >> considering the dominance that dave and busters has on the market. as far as the fear of consul games, it is well disproven that that is not the case. a typical dave and busters is 50% amusements, 50% food and beverage. 90% of the games played at dave and busters you cannot play at home. 70% of that 90% is redemption games. where you win coupons. it is the thrill of winning instead of at home where you can battle but you do not cash out. >> the numbers at the end of the day to show a slowing growth for
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this business. what would you say dave and busters needs to do to turn that 1.7% growth into maybe double? or 4%? >> in my opinion it is essential that a business -- dave and busters is a solid, well conceived concept. it needs to conceptually of all in order to succeed in the long run. >> in your opinion, what is in it for apollo? you heard the chuck e. cheese part of it. what is in it for the private equity firm? >> as far as the two combined? >> yeah. >> it is brilliant. you can have a cradle to grave situation where you are dominant. i think there are synergies between the two that could be dynamic. especially on international scale, licensing and stuff like that.
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once again, chuck e. cheese is in my opinion just like dave and busters. the concept has to conceptually evolve in order to remain dynamic and thrive like it has. >> talk about the evolution a little more. give us an example of what you mean when you say evolve. >> evolve as far as presentation of the amusements. how it is perceived and presented to the public. things that take ordinary games and make them special. and put in attractions. we have interaction horse racing games, group games where you can spin them off for teambuilding and all kinds of uses. mainly it is the wow factor and you have to keep wowing them.
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>> keep wowing them. one way to be success. the creator of the viral treat, the cronut. megadeth, the metal band has sold over 30 million albums. we will hear from the front man later in pop. the red carpet treatment for rocky. sylvester stallone had a musical based on his 1976 blockbuster movie. the boxing epic was transformed to the big stage. >> ♪ let me keep going if a prayer can never come true let me think of you and try to keep on standing ♪ [guitar music plays]
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day. the ratio of a circle's circumference to a diameter, 3.14. march 14. to celebrate math, here is tom keene at new york's mo math museum. >> glen whitney from renaissance capital built this wonderful institution in new york city about math. america is way behind in math. we have got to get kids and their parents engaged. inside is a lot of fun but this is serious. we have got to get better at math. ok, what are we doing? oh, my god. it is very easy. this is serious math, people.
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trying to get a seventh grader fired up. how? >> we give them something to touch. people learn by touching and doing. >> i can go faster than you. 4, 5, 6, a hexagon. algebra is not just about numbers and formulas. it is also about the physical space of geometry. what do we need to do in this country to make math cool? >> a place like this where they can touch it and feel it. i am always looking for toys to keep their brain going. otherwise, they are just under little machines. >> throw them into the pacific ocean. >> i will do that. >> expecting kids to get math skills in school but we never show them what to connect to in the real world. we never show them the light at the end of the tile. we are here to show people the
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beauty of application and rely on math teachers who get skills. >> what i will do for mathematics. >> we here on "lunch money" are not the only ones who love pi. >> i am excited about pi day, the 14th of march. >> one more time? >> 3/14. >> 3.1415. it is one of our favorite holidays. we are known for our pies. key lime pie, brooklyn's milk bars grasshopper pie. if you order any pie, you get to send went to a friend for $3.14. >> that is the shipping? it costs a lot more than three dollars. >> if you buy the first pie at regular price, the second one is
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$3.14. >> i will send everybody guests and get a zillion to myself. wait until you see me on monday. >> $3.14 is a good deal. from the man who brought you the cronut, the cookie and milk shot. you cannot make this up in less you are baker dominique ansel, who debuted his new hybrid at sxsw. how did he come up with that? >> thinking about something everyone was eating. drinking milk while eating cookies, i wanted to combine both. i might not be the first one making a cookie as a cup. i wanted to bring the idea and make it a little more interesting and exciting. i found a way to mold the cookie into a cup and infuse milk.
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and we pour it into the cup. i believe in innovation and creation. seeing so many people passionate for food and what we do is amazing. we are excited about new phones and technology when they launch. the same thing with food. >> those little gems go on sale at his soho bakery. it is at 3:00, go get in line. in pop, all about music. we will hear from country music legends and dave mustaine from megadeth. how to go hard-core. ♪ >> it has been a busy week in
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beats music from rapper dr. dre reasoning somewhere between $60 million and 100 million dollars in a second round of financing. hip-hop icon sean diddy combs offering to buy madison square garden's fuse cable channel. his ex-girlfriend's channel is offering even more. we are talking about megadeth, they have sold more than 38 million albums worldwide. the band is going back on tour. dave mustaine spoke with pimm fox about how he has helped pioneer thrash metal. >> i started off in the 1980's playing guitar and i was in a band called metallica. we basically invented a musical style. we parted ways in 1983 and i formed megadeth. we are both current members of what is fondly called the big 4.
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>> tell us the other 2. >> slayer and anthrax. slayer is another los angeles band and anthrax is from new york. >> that does not necessarily mean warm and cozy. how did you develop this genre of music? give people some idea of how it is characterized by the people that play it? >> when you are playing heavy metal music, per se, the name kind of has to fit the power of the music. a lot of times pop bands have names that are really fitting. for us, we were trying to be so heavy and so altra furious with guitar playing. we wanted something that represented that power. megadeth was the only word that fit. metallica has a metal-esque inamed, anthrax has a potent disease. we were held hostage in 2001 with all the letters going
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around. slayer is one of the names of the great destroyer in the bible. these are intimidating names, fitting the style of the music. >> have you become less intimidating in terms of your music as you have developed? >> as you grow up, things kind of change and it is hard to get an anarchist when you have a mercedes-benz in your driveway. i really -- this morning i was thinking about growing up how i was homeless when i started my career. a product of a broken family. it was basically watched during the day by the boys's club of america. you go from being a poor kid and having lunch tickets and food stamps to being a millionaire. it is an american success story. >> from metal to country, oak ridge boys have had more than 30 top 10 hits over their long career. here is the band with pimm fox.
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>> we have a long history back to the second world war. there was a group called the georgia clodhoppers. they would go to oak ridge, tennessee and entertain the people working on the atomic bomb, the manhattan project. they changed their name to the oak ridge quartet. they were reorganized a few years later as the oak ridge boys. william was the first one to join this lineup in 1965. i joined in 1972 and joe in 1973. we have been together -- >> he is the younger. you are the newcomer. >> i am trying to learn. >> talk a little bit -- a
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fabulous beard. is this your signature and something you have spent a lot of time on? >> it has been a long time since i trimmed it. 1980 was the last time. >> 1980? >> i guess, i don't know if i would know myself without it. >> what is it like playing with these three gentlemen? >> it is a great thrill. we all come from different places. >> where are you from? >> i grew up in south alabama and northwest florida. a small timber town. joe is from philadelphia, richard is from new jersey. duane is from northeast texas. >> you have got the whole country almost. >> almost. >> what characterizes the sound of the oak ridge boys? it used to be considered gospel. it has changed over the years. >> it was gospel when we all joined the group.
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we were southern style gospel. i think that is probably where we developed our love and fascination for power harmony. not pink harmony. we sound like for peterbilt trucks coming at you. we sing with full gusto all the time. we do not get in together and do that really unique harmony stuff. we sing our harmonies in powerful voices. >> from one performance to another. the nutcracker, today's mystery meat. great. ♪ >> we are on the market.
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january. a number of things contributing to that. continuing tensions in ukraine. people were selling stocks but find treasuries. those saw the biggest weekly gain in two years. 10 year yieldd -- going to 2.65%. streak having a big winning streak. the dollar falling against the yen. gold up to a six-month high. the riskuse of aversion we see people got -- getting out. sinceggest weekly slide november. entering a bear market. in the loop, betty liu asked invest inhe would
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emerging markets. is very difficult. one of the thoughts is people want exposure to tm. it is a risky area. low volatility funds give you exposure, but do not take on the same risk portfolio as others. atback in the u.s., mixed data on the economy. adam johnson took a look at where we stand. two steps forward, one step back. time for a little insight. fun withwe can't have economics? look the patterns we have noticed. we are talking about producer prices month over month. this is the data we got, down 0.1%. we have seen this before.
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paula abdul talked about how opposites attract. we are talking about volatility in numbers. here's the problem. we are not moving forward a whole lot. this is the number we got today. next week on tuesday, a day after st. patrick's day, the cpi index. prices at the consumer level. that is what we feel when we go shopping. 30 slow growth. the good news is prices are not going up. the previous month was also 0.1%. you need a little bit of inflation. right now, not a whole lot. the fed has expressed concern about what is happening in the underlying economy. there is a trade that is beginning to emerge. stable growth below three percent.
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