>> welcome to lunch money. take a look at the menu today. toyota pays up. the bill $1.2 billion. wemedia, on the red carpet. brought you the cast and creators. arounds and speculation malaysia airlines. in design, using form and we are kicking it off

with what everybody is talking about. russia moving one step closer to annexing the peninsula. russia is excited. here's president putin celebrating with his comrades. russians in crimea already feel part of the model -- the motherland. >> many russian speakers in crimea now consider that climate -- that already part, which is why they look at the ukrainian trip through a station there and thinking, you are a or an army. >> you can already see that in action. the ukraine's navy headquarters in crimea. many women stormed the base earlier today and protesters demanded ukrainian officers give up or leave for mainland ukraine according to a local newspaper, the news agency reports the

russian flag was raised over the headquarters. the crimean football clubs already signing on a russian premier league. >> remember ukraine is going through a very tough financial situation at the moment. the tensions fade in the ukraine are about half of those, actually paid in russia. a lot of crimean citizens are looking towards russia and thinking they're better off financially because of the difficulties the ukraine is going through. >> at this point, the ukraine is already waving the white flag. their party leader said on the party website, the ukraine should withdraw its troops from crimea. russia's news agency reports the ukraine will settle elsewhere in the country according to a cabinet member. the ukraine is calling on the international community not to recognize crimea's independent

david cameron has taken it a step forward. -- further. thus it is important and we should be discussing whether or not to expel russia permanently if further steps are taken. >> that was the british prime minister speaking earlier today, worried about taking more action beyond crimea. >> we said if there was further action to destabilize the ukraine and this is that action, further consequences need to follow. we need to set that out thursday with our european partners and, at the same time, we need to put down a very clear warning that if there was further destabilization, for instance going into the eastern ukraine in any way, then we would move the position of the sorts of economic sanctions we discussed in the house last week. >> that will happen tomorrow and maybe he wants to push european leaders for economic measures. the first round did not have the impact they were expecting.

that was a close aide to president putin, one of the targets of the latest sanctions from the u.s. and the eu. there is more when his -- where his comments come from. dimitri, russia's deputy prime minister, also among the russia a leak targeted sanctions. he said this yesterday. >> comrade barack obama, what you do, or you do not think about it, but there is more. he tweeted the following -- "-- >> it looks like they're looking for his accounts in the villas. they wish. the fancy villas may be in the russian countryside or elsewhere, one location that may suffer from the sanctions is london.

they stand to lose more than $180 billion of russian generated business. here is matt campbell this morning. >> it is not an exaggeration to say london is the business capital of russia. when you have a lot of money as a lot of the russian oligarchs do, you need to invested and find lawyers and accountants and bankers to advise you. they have come to london and they like the lifestyle. they like the legal system and property rights that they feel can be protected in the u.k. rather than russia. >> what kind of businesses have already been disrupted by the ukraine? >> have been a couple initial offerings shelved by a retailer that has put off its ipo and another is a pretty well known german retailer that was going to float its russian retail business. that late yesterday was shelved.

companies are looking to come to the public markets, work largely to be done here. they are saying, we will hold off. >> we saw david cameron want around the halls. he is right now wondering around downing street trying to figure out what to say to angela merkel. does prime minister cameron greet the oligarchs? >> it is a complex relationship. the british government is in a tough stop -- tough spot here. they do not want to jeopardize the city of london, and enormous driver of british economy. on the other, they have to stand with european allies, germany, poland, france, and so on. so it is a real balancing act. poland and germany in particular also have significant trading relationships with russia and they will be cautious as well. >> do you get the sense reporting and speaking to people that russia needs the city of london more or do the city of london need the russian

oligarchs and their business more? >> it is a good question. it is a symbiotic relationship. on the whole, the russians probably need london more because there are not a lot of options for them for a place to service the enormous wealth. they do not for the most part come to the u.s. because they largely do not like the irs too much. other capitals do not have the same kind of infrastructure. >> what about the effect on u.s. companies? >> there are still very big american names doing business in russia right now. it is a laundry list of top companies. general electric, exxon, and ford. they are nervous of what is laying out on the geopolitical stage, the possibility the u.s. sanctions being imposed on russia could come back in terms of retaliation against their businesses in russia.

it has not happened so far. i can tell you concerns have been registered here in washington. we are being told a meeting today between chuck hagel, the secretary of defense, he is meeting with 100 ceos of the business roundtable, top ceos across the industries. the issue of sanctions and what is going on in the ukraine and russia will be on the agenda today. they want to express their concerns and find out what happens going forward. >> what is next in this diplomatic standoff? leaders meet tomorrow in brussels. the russian lower house of parliament will vote on the treaty in crimea tomorrow and the upper house friday. stay tuned. we are going off to the u.s. next. fedex is joining a slew of other companies blaming bad weather for better earnings. we look at the numbers and the

controversy behind the retailer next. ♪ >> in company today, we have

earnings and settlements. toyoda's four year-long caves associated with 10 million recalls reilly and in with a settlement of $1.2 billion.

yang yang has the details. >> one of the largest penalties ever proposed on automaker. the investigation led examined whether toyota intentionally misled regulators by making false or incomplete disclosures about sudden and unintended acceleration in its cars. the incident led to the recall of more than 10 million cars and hearings on capitol hill, the finger-pointing ends today, landing on toyota. >> eric holder said in a press conference that toyota was more concerned about its public image than its customers. >> rather than promptly disclosing and correcting safety issues about which they were aware. toyota made misleading public statements to consumers and gave in accurate fax to members of congress.

they concealed from federal regulators the extent of problems some consumers sticking gas pedals or unsecured incompatible formats that caused the deceleration episodes. when they get behind the wheel, they have the right to expect their vehicle is safe. if part of the automobile turns out to have safety issues, the car company has a duty upfront to tell customers about them, to fix them quickly, and immediately tell the truth about the problem as well as the scope of that problem. toyota violated this basic compact. >> fedex reported weaker earnings today. it blames bad weather and cut its full-year profit forecast. it is one of many companies, including mcdonald's, blaming mother nature for it. turning now to american apparel, more problems. the company expects a wider loss this year and is delaying its 10k report and plans to file complaints by friday. sexual-harassment lawsuits, ads

considered too racy in the u.k.. there is a lot going on. here is american apparel by the numbers. ♪

>> "game of thrones" debuts. tom keene was there. his favorite moments are after the break. the final four. the florida gators and michigan state made the cut. here is the president himself. >> great offense. they play hard. donovan knows what they're doing. i think they will end up winning. i am going with the spartans. a great tournament coach. i think they have got a great chance of winning. out west, i am going with arizona. i know these are not imaginative

picks, but they are the right ones. arizona is weakened because they lost a starter but they will do just fine in this matchup. down here, smith, a tough combination. they know how to win. i have got the cardinals. ♪ >> this is "lunch money" and i

am adam johnson. "game of thrones" held a premier event for its fourth season.

tom keene was right there on the red carpet talking with the stars. >> we are here at the premiere. the richest guy, the more money than the gods. >> rose is wicked and a nice man. >> what is the skill set, the best practice you have, that you have brought? a workout? >> i am very lucky. >> it is amazing and feels like we are making a 10 hour movie every year. the way we shoot it and the scale of it all.

it will one day be over and i will kick myself really hard. >> what is your advice? people are watching worldwide. they have kids who want to do acting and screenwriting. what is your advice on doing it right? >> go with your gut instinct 100%. if you have an instinctual reaction, go with it here chances are, it is right. >> in the beginning, i have never acted before and it was this huge and surreal experience where you just went up in a plane and you went to a cool location and hung out with actors. it just got cooler and cooler over the years. >> what was it like acting to a new level of violence of this sort? >> it was great. >> did you have to get up to speed on sword fighting? >> there was a crash course in martial arts, something i had not been practicing my entire life. >> are you still carrying two

swords or do you go to one sort? >> go to a program to find that. >> that is a spoiler. i have just been put in the timeout chair. >> that is ok. that is the most pirated tv show for the past two years. here is what the creators had to say about protecting the new season. >> we invented copyright retention that will prevent illegal downloaders. there is nothing we can do. the one thing that comforted us is that hbo told us they did their research and 30% of people who buy the dvds initially watched the show via illegal download. people come to the show that way, it is not ideal but they are coming to the show and we are building an audience. >> it a shot all over the world, including the medieval croatian

port, which is getting a major boost in its economy as a result. angus paid a visit. >> this is dbrovnik nestled against -- it is easy to see why the city has been a hit with tv crews and tourists. the protected medieval town featured in the last series of the smash hit is nowhere to be found and now locals are looking to cash in. >> extras have been coming from all over the region. some from farther away, and as a good fans, they want to be part of the project. >> a game of thrones walking tour, charging $75, she draws crowds from across the globe. >> a lot of people in america especially younger people who know about the game of thrones know this through the series and that introduces them and they want to come here to see where it was filmed.

>> the history dates back to the middle ages where there was an important trading hub and often the target of conquerors. more recently, when former yugoslavia broke up in the 1990's, it was shelled and damaged by yugoslavia troops. now the city wants to restore its place on the global tourist map and they hope game of thrones will help spread the word. >> something you will not see on "game of thrones." we will go deep underwater to test the latest equipment coming up. gastronomy. we will hear from the world renowned -- coming up in each. -- eats. ♪ >> this is "lunch money" on

bloomberg television. we are streaming live on bloomberg.com, your tablet, your smartphone. i'm adam johnson. it is moving pictures now where the video is the story. hundreds of students stormed taiwan's legislature protesting a trade deal with china. they say gives china to much influence over its economy. they are staying put and plan to occupy until they agree to review the agreement. to the coast of sicily where the italian navy rescued more than 2000 north african migrants and 48 hours. the groups were jammed into a wooden boat, including refugees from syria and palestine.

italy has rescued 10,000 migrants since late october. george osborne tweets that the uk's current one-pound coin is out. the chancellor says it will be replaced with a 12 sided version. why the change echo they hope to deter counterfeiters. the current pound coin has spawned fakes. many theories and a lot of speculation -- the latest piece of evidence is from a flight simulator belonging to one of the pilots. data was deleted in early february. there could be a number of reasons why. they also say the plane sighting was not true. the column flutters like a deranged stock ticker.

the story is the new anti-journalism. all data, no real facts. and with theories. but you're all still obsessed, aren't you? >> when there's an academic downturn is something, people want to have some narrative that explains it. the human mind does not like uncertainty and confusion. especially under circumstances of fear or outrage. the mind naturally gravitates towards conspiracy. >> do we avoid connecting legitimate facts in such a way that they lead us to completely invalid conclusions? >> if you are stringing together clues, you come up with something pretty bogus. there is a sense of agnosticism and patience.

>> what drives us to look for the explanation? >> the economy has been struggling. distressed conspiracy theories are attractive. the other thing is the social media. it is a breeding ground for conspiracy theories. you can get across a large number of people. there are no mediaries. >> i can't say enough about the book and how you pull history into your analysis. it's the best cover of a book i have ever seen. all the hate mail that has ever been done. within this is a quote from the book. "in law as in politics,

disagreements can be productive and creative. real discussion requires a measurement of this agreement." it's easy to say conservative society goes to conspiracy theories. what are the conspiracy theories of liberals? >> wall street. liberals think when they are in a bad funk that companies have conspired together. the word plutocrat is a giveaway. >> what is a historical message you would like to convey where we can have less or better conspiracy theories? >> the free press is central. freedom of speech -- people who are purveying conspiracy theories deserve protection. recognize that while some conspiracy theories are true -- watergate really happened -- there's a lot of randomness and accidents.

to suspect people of wrongdoing or conspiring often is more attractive. >> coming up, we will meet one of the creators of fitbit. we will go deep underwater to test the latest technology. all that, coming up in design. the yankees-red sox game was delayed when a swarm of the bees -- they sprung into action. we have a game to play. ? >> this is "lunch money" on

bloomberg television. also streaming live on bloomberg.com. i'm adam johnson. we are hearing from the greatest innovators in business. all of them presented at the design conference this month. new deal design -- he is one of the creators of fitbit. check it out. >> that's a big question. what is design? ♪ design is the act of taking something usable, practical and needed and making it into something enjoyable and culturally grounded.

people tend to look at design as a style. a vision. it's a lot more than that. it's a visceral experience of how it's made, the materials, how well put together the object is. it's way beyond the visual. i love these moments where suddenly things click and you have a very complex problem sorted out. we have this intuitive feeling that this is a great idea. the second moment i like is when something we do really changes the way a company or an industry deals with technology. in the old days, there were designers and engineers and designers were supposedly the superficial types and engineers were inside out. today, things are mixed up. designers are very savvy about

engineering values. we make things simple, clear and looking awesome. >> you can watch our design series all week right here on "lunch money." we have a technological marvel for divers. this thing is incredible. a suit that helps you fly underwater, searching for things you have never seen before. one diver put on the suit this july for its inaugural mission. we were there. ♪

>> its art. it's science. its food. we will hear from the world's most renowned and innovative chef on his ingredients to

success. this woman will it tell us how she sells thousands of dollars worth of troubles from a tiny bag. speaking of troubles, this is how you enjoy them. slowdown. that's $50 were friday. glitches but expensive. -- that's $50 worth right there. delicious, but expensive. ? >> this is "lunch money."

we are streaming live on bloomberg.com and on your tablet and smart phone. i'm adam johnson. it's about the finer things in life. $1000 truffles that land on your plate. >> are you there?

we need to run fast. hi, this is francesca speaking. can you tell him we are coming? this came in yesterday night. restaurants know as soon as they arrive and they want them. we have a very tight schedule because the restaurants want them delivered before the service. today, we have several appointments. we need to move very fast. first up is the four seasons. >> you can put them on eggs, on pasta, on rizzotto.

>> we want the people to see them. everybody else uses the back door. we have almost one pounds worth of black truffles today. which will last through the weekend, probably. >> thank you. he says the weather forecast is good. >> they just walked in the front door one day. they showed me what they had and we went from there. >> thank you. hello. >> how are you?

really great stuff. the bigger ones are for show. >> of course we carry a big value. but it's not a problem to stroll around because it's something that has a value but only if you have a company that can sell to restaurants. it's a never-ending job. >> obviously, food is hard work. someone else who knows a lot about that -- one of the most renowned chefs in the world. his name is -- he has been called one part chef, one part

scientist, one part artist. >> i'm just a neighborhood kid. i give classes at harvard and i have good luck to be with marvelous people. for example, now. the only thing i have done is learn, observe, and ask why. that's what life is, in the end. sometimes we get answers. sometimes not. >> you can watch charlie's full interview with the chef tonight on bloomberg television at 8:00. there are culinary chefs and celebrity chefs. the rise of the celebs -- the godfather of celebrity chefs. how the food network helped

popularize cooking, eating and everything in between. >> i think they made it accessible. they brought it into your home everyday. what can be more inviting than rachel ray and bobby flay echo the food network talents made it cool and look like fun. julia child, you are cooking dinner. if not, you had no interest in how she was making the chicken. i had dinner last night in washington with my brother and his girlfriend was saying she doesn't cook but she loves the food network. i was like, why? she said, i don't cook but they make me want to. >> you have created these festivals. tell me about that. >> we have listened to the people. we take the greatest pop culture culinary talents on the network and take the greatest white cloth chefs and put them

together as a super bowl of food weekends. we and everything for a fried chicken event to a desert event. we have something for everyone. not everything likes the opera or the ballet but everybody eats. we have something that appeals to a run. >> don't lose your lunch. here's today's mystery meat. ♪

>> it is 56 past the hour, which means bloomberg television is on the markets. i'm alix steel. let's get caught up on where markets are trading. not only did central-bank say

they would cut back on the stimulus, but they said the interest rate would be one percent at the end of 20 15. that rattled markets a little bit. when you look at the treasuries, similar. especially on the two-year. since up at the most 2011. if you look at the dollar, that is where -- continuing to climb higher. to its highest level against the euro since january. and you could expect that gold was hit hard. it continued its downward spiral, not just for the fed but also consistent low inflation. at her economic data here in the u.s.. better economic data here in the u.s. for more on the markets reaction on the fed decision, i am

a fund--joined by manager. >> no big take away. i think she did a terrific job at the news conference. i think her policy -- the fed's critical. shey is did a terrific job. >> does that change the way you look at the markets? when you see in interest-rate rise earlier than we thought? >> we are bottom-up stock pickers. how we go change about trying to identify good investment opportunities. >> you worry about more it really had no idea what to do. all over the place. >> i do small and micro cap stocks. we use full tilly as an

opportunity to invest and buy more -- pull attila t as an volatilityy -- we use as an opportunity to invest and buy more. the growth engine of the economy is seen a pickup in activity. we think small cap stocks or a perfect place to be. the u.s. economy is starting to pick up. smaller companies are going to benefit quicker. they have cut a lot of cost out. you will see them drop to the bottom. >> that is exactly right. >> what are some companies you are interested in? a $1.1 billion packaging company. they do flexible cap gene -- packaging.

they spent a lot of money over the last couple of years making acquisitions. investing in plant and equipment. we think the stock could go to around $80 from $40 great -- $40. of inter-rate -- internet everything is big buzzword. with equipment. >> think so much, i appreciate it. thanks so much. i'm alix steel. ♪