out of theicked club. it is that enough to stop them from a full on invasion of ukraine? youtube sensation, disney will pay $1 billion for one of the hottest names in online video. what will bob eiger do with this business? growing shortage of pilots. this mightk at why

drive retail airlines out of business. >> welcome to "market makers." i am scarlet fu. some breaking news. new home sales numbers are just coming out. let's head out to mike mckee who is in our newsroom. what do you see? >> the expected in new home sales, they fell by 3.2%. that was not different than what people thought. is interesting that happened that january was about growth. it had been stronger than people thought going in. 455.t falls to the drop is a little less than it would've ordinarily been. everybody is going to write that off to the weather. february, that a still

stronger than what we saw last re wasn't a the weather problem. rates may be more important than the weather. we may see a comeback. tosumer confidence, we want follow this closely. if the weather had an effect, it might show up here. people get more concerned about confidencesumer rises more than expected. it is a big jump over the month. people think that things are going to get better. the expectations index increases to 83.5. that might be what you are seeing in terms of the weather related affect. people think things aren't great now but they will get better. feelant to see how people about jobs. they are feeling stronger about that. the numbers overall are not bad

and explainable in terms of new home sales. it is good news in terms of consumer confidence. maybe when the weather gets warmer we will start spending again. >> it is not happening today for sure. we saw the the data, s&p 500 take a big leap up. they came back to where they were before the release. they are up 10 points. the dow is gaining 6/10 of one percent. and the nasdaq is up after lagging behind the last couple of days. s&p hadoday, the climbed for two straight days. this is a little bit of a bounce back. news, generale motors may not have recalled all the chevy cobalt's with bad ignition switches. this is according to two complaints filed against gm. gm is not commenting on these new complaints.

president obama will call for big changes at the national security agency. theants the nsa to stop election of phone records. the phone companies will keep the records and the nsa would need a court order to access it. surveillance is taking over market makers today my cohost tom keene is joining me. up from twopsyched hours of radio. >> all the interviews we do our great. the reason we do this is the idea of speaking to someone like a nobel laureate. the crevice or talking to him about his rate mentor. what a privilege to talk to him. it was about carl icahn and the use of cash. we were talking about bonds versus stocks and all that. it was a pretty esoteric

conversation. this is why we do this. i get to hang out with scarlet fu. >> another sign this morning ist the post cold war unraveling. g7 has kick russia out of their club. the g-8 is now dead. kremlin even care that they are not a part of the g-8? cared theyif they are doing a good job pretending that they don't. putin presided over an awards ceremony for artists and actors. yesterday it was another awards ceremony for people who participated in the sochi olympics. to work with the other g7 countries. there is a realization that for a while the g-8 has been g7 plus one. even the russians felt like they were the odd man out. it was not a useful place for

them to advance their agenda. the g-20 is less exclusive. allies. more of their they could do better at moving things along. if they do care, they are turning a deaf ear to it all. they're pretending like it is not a big deal. >> russia in the g-20, has any of that changed? >> they have good support when it comes to the g-20. i'm not sure the chinese are happy with what the russians have done in ukraine, but they have not been very critical. the resilience of not been overly critical. the russians still feel that they can do a lot with the framework of the g-20. it would've been nice to host everybody. it is not more important then taking crimea was. been so much

criticism against president obama. he did have sanctions against russia. one of the consequences so far? >> the sanctions that have been imposed thus far, it is arguable how much affect they have had. the threat of sanctions does look like it is going to undermine it confidence. money is flying out of this place. more money has left russia in the first two and a half months of last year. esther was a bad year. 62 $5 billion have left this year. -- $65 billion of left this year. the economy was not a good shape before. if we see more money leave, they could be looking at a recession. it will be hard.

i think you get the impression. about capitalng flight is a lot of this money was leaving the money before forces surfaced in crimea. you could say the same thing about the depression of the ruble. the stock market has had a good week. house,en to the white remember that you might be hearing a little bit of spin. take that with a grain of salt. >> thank you so much for the report from moscow. >> we just saw him. they are in shock over the new sanctions. more could come. >> the president will have a

news conference at the end of catchclear sublet. eating that on bloomberg television. he is scheduled to start speaking at 11:00 eastern time. has seen thesney future and it may be on youtube. he will tell you about their latest acquisition. airline pilots are making more than minimum wage, the wonder there is a shortage. this is bloomberg television. ♪

>> disney is acquiring maker studio. the price tag is $500 million. what will disney do with its new vast digital audience. here --d erlichman is jon erlichman is here. >> what is this latest

say about disney's long-term goals? >> we recognize that our consumers are going more and more online. they're watching more video online. if you look at the internet and internet advertising, what are fastest-growing areas is online video. they are saying that their customers are going there. they know the ad dollars are going there and we have to have a play there. they buy maker studios. over 380 million subscribers. this is a great way to step into this business. >> is youtube a success? it is making more money than god. >> they have $6 billion in revenue for google. there are a

lot of users in revenue. there are no real profits. maker studios is one of the largest layers in terms of youtube. it is not making money. it is losing money. amazon is building revenue and has little profit. one day there will be profit. >> maker studio will be housed in a disney. youtube is part of google. similarks made a investment as well. tell us about that and how fits into a disney is doing. >> they bought awesomeness tv. there is similar thinking. youtube is a massive place. let's make a destination on youtube so anybody who is making some random video somewhere in

texas caneurope or all find a home and we can find a way to brand all that. they have similarities on that front. you have layers from inside awesomeness they're having some influence in dreamworks. the deal is about how this works as well as the economics of the business. the idea of figuring this out. sweeney, does the media industry have time to figure all this out? spend billions of dollars and you don't know where the payback is? these companies are walking a fine line. they want to preserve their existing business which is extraordinarily profitable. everybody is making money.

they need to preserve that but they need to recognize that consumers are shifting their habits. youtube watchers teenagers? >> these may be the people who are not paying comcast. they are consuming their video in different places. >> i am sold. >> how will disney use maker studios? as a brand extension? will create content for youtube? >> i think the marketing is the biggest opportunity for them. staryou think about the system and what they have been able to do over the years with disney channel. if you can find talent through maker in get excited about it through that platform and bring it to other disney channels, that is a potential when. disney. star wars at

there is great marketing opportunity. disney may focus more on that as opposed to the economics of this business. advertisinge the dollars with youtube. there is a trend of video advertising. struggledlike maker to get paid big ad bucks for every single video. go, who is ben sherwood? >> is going to be the new head of abc television reduction. it is a huge job. they come set of abc news where he had a nice and successful run. he turned around good morning america. it is another example of a strong bench. >> he would make good morning america and younger and hipper. >> they did. today has owned the morning.

get 14 mentions of "bloomberg surveillance." >> does this mean that been sure what is being groomed for the c suite later on? >> he is in the running. disney loves playing it this way. you have all these potential players. it you can keep his name in that hat for sure. >> thank you, jon erlichman. on market makers they put a scott a shot of scotch in the coffee? up, a big change in the ranks at carlyle group. who ♪ will tell you about it when we come back.

>> the usual team is out vacationing. there was a shakeup at carlyle group. they have a co-chief operating officer. he was a top deputy at jpmorgan. let's talk with mr. kavanaugh. was he thrown out the door? >> no one is ever thrown out the door. seen isains to be banking guys like this land very nicely a private equity firms. they get a tremendous amount of money. this guy dealt with the london

whale investigation. now he is going to a place to does not exist under as much government scrutiny. there isn't that much regulation. >> you know where everybody is going. it you fall off the chair? >> i'm expecting senior guys to take a big jobs like this. that said, it was a bit of a surprise. to wonder why they needed a guy like this right now. they haven't done a fantastic job articulating why this is the right time to add a senior person at the top of the organization. -- three founders are not exactly young. >> one thing that many people do is realize about carlyle it a growing industry. each one of those functions like

a mini business in of itself. you have 118 funds. the thing is huge. they try to institutionalize it. they want to put this younger guy in charge of it. they are splitting this role. they are saying there is enough work to go around. we are such a sprawling organization. i think they are wondering if anybody gets hit by a bus, we have of backup. >> they are getting older and doing their charitable stuff. are 64.f them >> david rubenstein is one of america's great philanthropists. it is part of institutionalizing. one thing that they have done that is interesting is they have a committee called the

management committee. it was historically the place where reporters would go to figure out who was in power. when they hire a new guy they put him on the management committee. it is now 16 people. jamie dimon going to retire anytime soon? >> it has been a rough time. they probably want some time to sit back. >> that was part of it. that job is done. >> it is tough to gauge when he will step down. i don't think he is being hurried out. if he is going to do it on his own time. we had to look at the markets. >> is time for us to go on the

markets. we start with the major equity indexes. rebounded.s&p the dow has gained 100 point. nasdaq is gaining the most. bio techs are among the big decliners. is speaking int the 11:00 hour. the russian ruble is doing better today. lower means stronger. that is what prudent gets today. nevertheless, some real economic impact this morning. we really underscored the flow of capital that we see. we have a lot more to go. >> rush is headed toward recession even without the sanctions. the first he was of big investors after the fall of the soviet union.

when he put their money -- his money there now? >> we will to you the story of cloak. ♪

>> welcomes "market makers." i am scarlet fu. >> i am tom keene. we are here for erik schatzker and stephanie ruhle. vacation withn a children. what is that about? >> things between the united states and russia are heating up. depreciating, jay

jordan is here. known for investing. until two years ago, he was able on russia. wonderful to have you here. would you invest in russia this morning? >> no. we camewent in in 1998, in and we invested in russia heavily. we built the largest cable tv network which we sold in 2006. since then, we have look for opportunities, but we have backed away because of what we are seeing in russia. there is no rule of law there.

we are very -- howhe critical question is should we treat the oligarch? how should we as a public treat that? >> they got control in the early 90's. they got control of the russian thets and absconded from russian people in the public. you have to treat them individually. when food and came into -- when putin came into power, he had a mandate that said stay out of

politics, pay your taxes, and we will leave you alone. some of them began paying taxes. of course he was the one that decide who can. >> what would it take for you to invest in russia again? what did you see when you went? >> it is the same old same old. went in, itinally was under the banner of jordan industries. it is now the jordan company. we would never put lp money into russia right now. friendships in russia and we were successful. i don't know if you are familiar with the 60 minute piece -- bill is a friend of mine. i had reference with him in london. they just stole his business >> you have been one of

the great forces behind one of the great cities in america. you have done this for decades. here's is a photograph of me and scarlet fu in a gorgeous wedding .owntown in chicago what did it take to rebuild? what was the social force that reenergized downtown chicago. kniticago has a close business community. it is not fractional eyes. everybody is together and on the same team. coalesce all of the forces in the corporate sector to rebuild the city. that.re continuing on it has to do with the unification of the business community as one that -- >> the, i was there of the

parade. black hawks. thes there the day of parade. how close to chicago to being a detroit? how can they escape a bad urban outcome? question of the day, decade, when you have you -- what have you. ron may have to do that in chicago. the state of illinois may have to do that. it is a poorly run state. it is drastically underwater. $140 billion or 150 billion dollars underwater. i do not know where the money is going to come from. >> you sounded your own pe firm back in 1982. you are seen as a pine air in private equity. what is the biggest change you have seen since you started in this industry?

>> it is somewhat cyclical. it involved -- evolved where a number of players were not able to sustain themselves. funding sources are putting more money with fewer lp firms. transitionn that take place. we have been lucky enough to be one of those firms. we began to build our enterprise and there has been a transition. >> has been there -- has there been too much money? >> absolutely. depending a what marketplace to serve, the big guys -- >> can you come back? we are getting honest answers. >> we have been able to provide better returns in the single digits.

the real key is how much money can you return for a respectable irr. were initially focused on irr. that does not mean anything if you do not get your money that. >> please come back. >> i would love to. >> we covered detroit, private equity, chicago. thank you so much. >> we will talk about notre dame next time. >> coming up, they keep it safe at 30,000 feet. wait until you see how little some of the airline pilots make. ♪

>> airlines are desperate to find men and women with the right stuff, but who wants the glamour of life in the cockpit when the starting salary may only be a few dollars above minimum wage. a government study says that almost every regional airline fell short of its hiring targets last year. helene, what is causing the pilot shortage? the starting salary is low, but it does get higher. term, new pilot rules went into effect january 4 that limit the amount of hours that pilots can fly. the need for 5000 more pilots. all pilots have to have 1500 hrs of experience. that is about four to five years to get that level of experience.

because major airlines have not been hiring for most of the past decade, or have not been a lot ofguys and gals coming out the military going into the profession. decade, the world moreneed half a million pilots. 50,000 to. alone, 60,000 more pilots. >> what about how expensive it is to train to be a pilot? we estimate it is about a thousand dollars an hour. 1500 hrs is four to five years of experience. you need to figure out a way to fly to get that level. the old rule was 250 hours. that was not picked by accident. most kids i came out of a four-year university program

came out with a couple hundred hours and they could get the rest with a reasonable cost. now, it is costly. i remember when pilots made a ton of money. they worked the shortest hours and there was a prestige to it. is that gone? >> yeah. >> even in a big plane? >> the senior captains are up in range. 350 to 450 are the ups and fedex pilots. >> the kids that are making 22 and 25,000, that is a joke. why should those pilots fly for

delta? can they go to emirates and do better? >> that is what is happening. they're fine for international airlines and emirates will start them at $82,000. american delta united will start their pilots in the 60,000 to $70,000 range. the guys and gals flying for the theonal airlines, connector. >> are they safe? are they certified? do you feel comfortable? >> they are trained. they should be earning more money. i believe that over the next 45 years they will have to in order to attract people to the present -- to the profession. your party started to see a lot of the big airlines work with universities to establish

training schools in order to help these guys and gals. >> what does this mean for the regional airlines? they face a pilot shortage and they are finding a hard time getting anyone to steer the planes. what do they do? memo they are shrinking. they're going to bigger planes. we are seeing a lot of the 50 seeders going away, being replaced by 70 and 90 seeders. -- seaters. we do not have enough pilots to hire. talk. of us i know you live -- the price of tickets is laughable. >> for all of us. it has gotten costly. >> this concentration of major airlines is a good ring? >> think about how profitable the industry is becoming. that is a good thing for the public. you do not have the uncertainty that you had in the last decade

of all of them% operating on chapter 11. that is unacceptable. provide safe to and reliable airline transportation, great careers and opportunities, and a return to shareholders. you provide -- do you provide a distinction between quality me distinction among american carriers? international standards. the faa rates all countries and all airlines worldwide. everybody aspires to be category one. that is about all we say about it. >> we will continue to monitor that.

>> $22,000. >> two dollars above minimum wage. , your own online social radar. we will create the makers of the app called cloak. >> the vix, not bad. ♪

>> one too many awkward encounters with ex-girlfriend is sparking a new cap. dachshund new -- a new app. cloak. we are going to bring in the cofounders. this is like a tight to -- >> why are you looking at me?

>> explain how the app works. you sign up and you connect your foursquare and your instagram accounts. all of those friends that have taken photos, checked in, they pickup on a map. you can individual people that you want to avoid. when you get within a certain distance of them, it alerts you. >> they do not know that you're doing this? >> no. >> this is a side project for you. >> the response has been overwhelming. >> we are bootstrapped right now. we are looking for people to come help take this to the next level. on myook at the apps

phone. you are with buzz feed before. .ou are writing code what is your next step to move this forward? sure there are bug fixes and adding more networks to the system. we want to give the best experience as possible. >> you mentioned foursquare and instagram. there is a lot of location data that you can call. what have you learned about which app is good for which kind of data? withat is why we start foursquare and instagram. you check-in, you have your location shared. with instagram, it was a surprise. if you enable your photo map, all photos that you take from that point forward will have the the phototion where

was taken. >> what are your best practices to move forward and what are you trying to avoid? quicklyng out there is as possible. that is our mantra. >> are you in front of a computer screen a challenge today? >> after lunch. i want to seal the analytic static. >> i do a little design. i created direct. write a little bit of code. i am in the creative direction area. >> we convinced friends to help us bring this to life for very little money. itget your question, i think is about growing the user base and figuring out the big idea is. media look like

an two years? you see this as a future and how social media apps work. is this the direction we're heading in? social media has jumped the shark and we are now looking to avoid connections that we have spent so long building? will not replace social networking. it will always be there. in one form or another. it may not be the big facebook networks, it might be more fractured. we're starting to see that. this will always be there as a complement. >> you going to brooklyn, the businesses want you or do they hate you? which party living? -- which bar do you live in? >> helping people avoid a certain bar at 6:00 because there is a certain suit crowd,

that could be a big deal. >> were you talking to? the suit crowd. would it be better if i take my tie off when they talk to me? i feel better. people are worried about -- it is clear that is not our intention. the data is already out there. it is on foursquare and instagram. you were some crazy internet stalker, you would had here -- you would have your data there. you.ank cofounders of cloak. 56 minutesaching past the hour. it is time to go on the markets. let's start with the broad market indexes. gains.looking at they have dissipated quite a bit.

this is even after economic data. i came in better than anticipated. consumer confidence was higher than anticipated for march. we seem to be going back down in the other direction. alice -- goal doing a little bit better. -- gold doing a little bit better. >> the president is speaking with the danish prime minister. >> what you think? thehat him a fox look -- pimm fox look? let's see if you can do it without looking at it. rallying after it posted second-quarter earnings. it is up by almost 10%.

carnival is narrowing its profit forecast. that stock is down at 4%. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> president obama's next move. they have suspended russia from the club. our tougher sanctions next? >> showdown at the supreme court. amake or break case against broadcast network. investors concerned about the maker of the game can be crushed. crushed --ame can be candy crush. >> we are here in for eric and

stephanie. we are waiting for the president to speak. a lot going on this morning. it is time for a newsfeed. >> here's the president. let's go to him. good afternoon. -- ng the world safer by we have taken a big step in that direction in hague. i am proud to present the summit to you today. building on the progress we made earlier in washington, this sets the bar even higher. have taken major steps towards meeting all main objectives of the process. i will say a few words about each of them. to reduceobjective is the amount of dangerous nuclear

material in the world. the less dangerous material there is, the better the nuclear since your knee the smaller the chance that the terrorists will be able to get a hold -- >> that is the dutch prime minister. we will wait for the president to get his remarks. hans nichols is at the hague. ryan chilcote is in moscow. phil mattingly is in washington. heels of athe nuclear conference. all the focus is on the u.s. versus russia. >> the g7 versus the g-8. we will get more from president obama here. so far they have canceled a summit in sochi. that was a slap on the wrist to president putin. they have warned that if there

forces crossing over from russian into ukraine, if that happens, there will be additional sanctions on the financial sector, on the minoring -- the mining sector and on the arms sector. all we have is a warning. they want to see how russia response. in another 24 hours, president is at the european union. right now, as we have a, 31 individuals have been sanctioned by the u.s. nothing specific on sectors or industries. >> its crossover to washington with phil mattingly. how concerned is washington concern about russian troops massing along the ukrainian border? >> they are wary of how russia is operating right now.

they were not expecting what occurred in crimea. they're watching what is going on in terms of southern and eastern ukraine. hans makes a key point. the administration officials believe the sanctions are the hammer that might come if they bring sanctions against entire sectors like energy, banking, and arms -- those could be what keep them out of making any further action. the concern is real. everybody is interested to see how russia reacts if they move at all. >> we will get to the hating in a moment when the president speaks. ryan chilcote, you are in moscow. what is the reaction from russians to these sanctions? it does not touch them so much as a couple of individuals. >> the vast majority of russians are not taking the sanctions seriously. it just touches on a handful of individuals. one bank, the first bank to be

sanctioned by the u.s. government -- the vast majority of russians think this will blow over. up of thetcheting sanctions on food and -- on putin's inner circle. they are ready to move on. >> the idea that it will blow over. hans nichols at the hague. you see the outflows of capital from russia. as we go into the president's comments, is the mood that they are composting a lot and they are having an effect? >> yes. there is a bit of triumph from the u.s. officials and how they have had a knock on effect. they are almost boasting about what they have done to the ruble. this is underlying the european concern. if you cripple the russian economy, you cripple the european and global economy.

i was speaking to the president of the european commission. says there is a political will in europe to impose costs on russia, even if it hurts the europeans. that is a proposition that has yet to be tested. here in the view from moscow, there is a lot of smoke and mirrors when it comes to the effect of sanctions on the financial market. it is true that the ruble is the second biggest kleiner amongst emerging markets -- biggest decliner amongst emerging markets. there is a little bit of spin people deal with here. >> we have to jump in. the president has begun speaking. in washington state and while i will not get ahead of the

ongoing response and rescue operations, part of this community has been lost. first responders have acted bravely, despite dangerous conditions. stateople of washington have been quick to help with fellow citizens. i signed a state of emergency declaration to make sure that they have the resources that they need. the army corps of engineers has been on site to offer their assistance and expertise. i will ask that all americans send their thoughts and prayers to washington state. we hope for the best. we recognize this is a tough situation. as for our work here in the thee, i want to repeat

extraordinary work that mark has done in helping organize this. netherlands, the your hospitality has been remarkable. your organization has been flawless. to all of the people who were involved in putting this together, including those putting up with the traffic that i caused, i want to say thank you. i am told there is a dutch word that captures the spirit which does not translate into english, but let me say that my first visit to the netherlands has --. i convened the first nuclear summit in washington.

we made further progress at our second summit in soul -- seoul. we build on that progress here. is not about big commitment. it is about taking tangible and concrete steps to secure nuclear material so it does not fall in the hands of terrorists. i want to commend the belgium and italy. those supplies can be eliminated. in a major commitment, japan announced that it will work with united states to eliminate hundreds of kilograms of nuclear material from one of their experimental reactors. that is enough for a dozen -- for dozens of nuclear weapons. dozens of other nations have agreed to take specific steps to improve security and to support our global efforts.

we have set new goals for implementing nuclear security measures. i have made it clear that the united states will continue to do our part as well. willuclear regulator reading guidelines to strengthen security. we pledge to pursue the production of a key medical illnessesed to treat like cancer without using weapons usable material. we're going to install more radiation detection equipment in order to combat nuclear smuggling. all this builds on previous efforts. some places have her themselves -- and created new

senators -- new centers to improvement clear training. more countries have ratified treaties and international partnerships at the heart of our efforts. we have seen a fundamental shift in our approach to nuclear security. we have a lot more work to do. i believe this is essential for the security of the entire world. given the catastrophic consequences of even a single attack, we cannot be complacent. i will close by reminding everyone that one of the achievements of our first summit in 2010 was ukraine's decision to remove its highly enriched

uranium from its nuclear fuel sites. those nuclearpen, materials would still be there now. that weicult situation are dealing with in ukraine today would involve another level of concern. it is a reminder that the more of this material we can secure, the safer all of our countries will be. it may progress. we have more to do. we're going to continue our work. i look forward to hosting the fourth nuclear summit in the united states in two years. thank you for this outstanding summit. you, mr. president. we will go to the questions now. the first question will be julie. "the associated press." >> thank you. you have been criticized during this dispute as not 'sderstanding president putin motivation.

you thought he was reflecting or pausing his incursion into crimea. did you misread his intentions? what do you think his motivations are now. and on an essay -- when you spoke about the review in january, you said you're not sold on the out ocean -- sold on the option of companies holding metadata. what has changed for you on that matter since that time and you think congress will pass legislation? mr. prime minister, there are s about that have concern sector sanctions, do those leaders -- have they had their concerns alleviated over the past few days? i can runsee if member all of these. [laughter] there has been a lot of speculation. i am less interested in motivation than the fax and

principles -- facts and entireles that the community is looking to a poll. think we have been under the illusion that russia has been very interested in controlling what happens to ukraine. that has been the case for years now. that has been the case dating back to the orange revolution. what we have said consistently throughout this process is that it is up to the ukrainian people to make their own decisions about how they organize themselves and who they interact with. it has always been our belief that ukraine is going to have a relationship to russia. there is a historic bond between the two countries. that does not testify russia

encroaching on ukraine's territorial integrity or sovereignty. i said early on that should russia do so, there would be consequences. working with our european partners and our international partners, we have put in place sanctions that have had some impact on the russian economy. forward, we have said -- and i want to be clear -- we are not recognizing what is happening in crimea, the notion that a referendum sloppily organized over the course of dose co--- of two weeks would oftify the breaking off crimea and the annexation by russia. be asomehow that would

valid process, i think the overwhelming majority of the world rejects. we are concerned about further encroachment by russia into ukraine. and what theced european council announced was that we were consulting and putting in place a framework, architecture for additional sanctions, additional costs. what we also said and will continue to say is that there is another path available to russia. ukrainian government has said it is prepared to negotiate with prepared to it is recognize its international obligations and the international community has been supportive of a.mac process that would allow a de-escalation of .ensions a moving back of russian troops from ukraine's orders.

organize elections to allow the ukrainian people to choose their leadership. if the ukrainian people are allowed to make their own decisions, their decision will be that they want to have a relationship with europe and russia. this is not a zero-sum game. think the current government has shown remarkable restraint and are prepared to go down that diplomatic path. it is now up to russia to act responsibly and show itself to be willing to abide by international rules and norms. if it chooses to do so, i think there can be a better outcome. if it fails to do so, there will be additional cost. that will have some disruptive

effect of the global economy, but it will have the greatest impact on russia. that would be a bad choice for make.ent putin to ultimately, he is the president of russia and he will be the one making that decision. he has to understand that there is a choice to be made here. with respect -- even though this was directed at mark, i want to address this issue of sect ral sanctions.o we restrict visas are being issued to certain individuals, freeze their assets, we have identified one bank in russia that was well known to be the bank of choice for many of the p ersons who support and facilitate russian officials from carrying out these

activities. we have held off on the more broad-based sanctions that impact entire sectors of the russian economy. it is not just my suggestion, council'she european suggestion that should russia go further, such sectoral sanctions would be appropriate. that would include areas like energy or finance or arms sales. trade that exist between europe come in the united states, and russia. what we are doing now is examining the impacts of these sanctions. hurt someions would countries more than others. all of us recognize that we have to stand up for a core principle

that lies at the heart of the international order that facilitated the european union and peaceosperity europe has enjoyed for decades. although it could cause disruptions to each of our economies, what i have been encouraged by is the firmness and willingness of all countries to look at ways in which they can participate in this process. our preference will be to resolve this diplomatically. i think we are prepared to take the next step if the situation gets worse. on ukraine, i think it is important that we spend as much effort on bolstering the economy inside ukraine and

making sure the elections proceed in an orderly fashion. we hope to create a package for theine rapidly to finance economy. we are sending in observers and monitors and are providing technical assistance to make sure elections are free and fair. the sooner the elections take ioned thee better posit ukrainian people will be in terms of managing a challenging situation. in response to the essay, i said several months ago i was assigning our various agencies to bring me new options with respect to the -- >> you're listening to president

obama answering questions in the hague. he is speaking with the dutch prime minister. i want to bring back our reporter, phil mattingly. he is our white house correspondent. ryan chilcote is joining us from moscow. one question was how did you risk -- misread putin? what do you do next with the president of russia? >> he said he was not interested in motivation and that he was interested in the facts. how did the west miscalculate putin and russia so badly? >> a lot of people on the ground are stunned that the u.s. thought they could prevent or dissuade president putin from moving forward with crimea. there were calls from the white house and the european union into the weekend ahead of that referendum in crimea to stand

down from the reformation them -- from the referendum. everybody that has been watching russia and the president putin since he took power did not think there was a chance he was going to do that. there is a question about what the white house knows in terms -- anel and in tight insight into president putin's mind. they blew that call. >> phil mattingly in washington. economic data coming out. manufacturing index is soggy. it is about the global economy and domestic economy. on the hill, are they engaged in the debate or are they removed from this tom looking at domestic matters? the problem is nobody is

totally sure with the option should be right now. on the primary level, the debate over the imf packages going on. there is no path forward right now. the other is what are the other options that the u.s. and white house should take to counter what vladimir putin is doing. the key question is where does everybody stand on sanctions? lawmakers are getting hammered by multinational companies on a daily basis, trying to figure out how to make sure the sanctions do not hit them directly. it is going to be interesting to see. these are the sanctions that the president has been threatening to take if russia further encroaches upon ukraine. ryan, you are in moscow. he gave an update in what he is looking for from ukraine progress.

imf will be able to complete a package for the country. what are you hearing in terms of what is next for ukraine? set to golections are forward. they're scheduled for may 25. the imf completes its mission today. we expect an announcement tomorrow. we have known for a while now that the first trunch of the imf eight is expecting to be about $3 billion. we expected to be around $50 billion. -- $15 billion. it is the other aid, european union aid. as soon as they get the imf aid aidlved, some of the other can go on.

>> how fragile is the russian economy? >> fragile. capital outflows are between 65 and $70 billion. bit more money leaves the country this year, he could see that pushing russia in the direction of a recession. growth is just around 1%. we could get a recession. things were not great before this. this might be what pushes it over the edge. >> thank you. ryan chilcote joining us from moscow. though mattingly was joining us from washington. just in case you want to continue watching the president speaking, you can go to bloomberg.com/tv. >> i want to be at the press conference where the ap reporter was beginning. >> she asked five questions. >> you only get one question,

maybe a follow-up. that was rude. >> she had to make it work. we're going to talk about candy crush next on "market makers." ♪

>> welcome to "market makers." i am scarlet fu. >> i am tom keene. >> we're going to talk about keying digital. they go public tonight. -- king digital. they go public tonight. have you ever played candy crush? it is pretty addictive. >> i could not get beyond more on stage. stage.n

worriesone hit wonder sour king's debut? ethan, welcome to "market makers." king digital has been around since 2003. it is cash flow positive for the last eight years. they say it is not going public for cash, but for strategic opportunities. does it sound like cashing out? >> i would not be so like to ascribing nefarious reason. they have done incredibly well with this one game that they have. having the public currency to do that makes all the sense in the world. >> is this ipo linked to

declining candy crush interest? >> that is the $7 billion question. what they have been able to achieve with that game is remarkable. there is stuff going on behind the scenes that we do not know about. when you look at this ipo and the idea of cashing out and the enthusiasm right now, when you look at this ipo, was the distinctive characteristic? how is it different from zynga, facebook? when you look at the red herring, what is different? >> this is a stronger ipo then zynga. i know people will draw that conclusion and say is this groundhog day? are we doing this again?

zynga had a couple of things against them. were in washey hitting its peak. ing and candy crush, it is mobile gaming. it opens up a whole new set of options. >> i agree with that. extrapolate that a broad. is this an ipo with an just theonal future or more developed nations and the more developed world? >> i would expect it will mirror the growth of mobile phones internationally throughout the world. whole nations are just converting over to smartphone technologies and they are going to have the same desire to play games that we have in the more developed countries. i would agree with that. >> a lot of people say that

because of zynga's post-ipo struggles, space is stagnant. where do you see it and how this king digital fit in? >> they can redefine a. they can show that this is not the zynga all over again. the have to show that success they have had to date with this game on the mobile platform, that is opening up a world of opportunity in terms of new mobile games. the gaming market is growing at a pretty gargantuan rate. zynga could not grow any more. the market was at a ceiling. findingtruggles of revenue with twitter or facebook, would you presume that somebody could come in before the initial public offering and acquire the company? somebody has the confidence to

get in the way of this? >> this company did almost $2 billion in revenue last year. the acquirers are ready limited. any.not think there are you look at the traditional game acquirers, they're not big enough to do an acquisition of this scale. you could possibly -- the asian game custom -- companies, 10cent, alibaba, they have their own strategic activities going on. >> speaking of companies, this is a company that is less mature than king digital. it is not that far along and is still unprofitable. it has not given investors a whole lot of information. what would you look for box to

accomplish? >> we are investors in box. i cannot comment on that one specifically. in general, the market for cloud computing is in trysting -- is interesting. solution, it a tends to pervade and stick around. that is how people evaluate cloud computing in general. >> i know you are in every latte bar, how frosty is the ipo market? everybody piles out with ipo? headyhink we are in a time right now and i would be smoking something if i did not acknowledge that reality.

they are sound of businesses with good fundamentals. i think they will show investors that they are worth the excitement that they are generating today. i am not ready to say this is over froth, but there is a lot of enthusiasm. >> thank you. king digital price shares tonight. >> i remember the last time. they would bring in perspectives. >> you would end up reading them for hours on end. look as beginning to little like that. them are coming up next, a fight that could only end up in one place. ereo'sl hear from a

ceo. you can watch all of our interviews on demand on apple tv. ♪

aereo versus the big television networks. they are expected to submit a -- tomorrow. john erlichman sat down with the ceo at one of the manufacturing facilities in salem, new hampshire. he is fairly unapologetic about his service. of the mostne fascinating stories. you have an upstart going against a powerful broadcaster. you can make the argument that there are billions of dollars on the line. it does not worry the ceo of aereo.

>> if you are not successful at the supreme court level, is there a plan b? >> there is no plan. merit.eve in our we think it is the right thing. rye grass is important. the mission of this company was platform, toopen which the system open. itwe do not succeed in that, will be a tragedy, but it is what it is. >> you have seen this rollout of aereo. they operate in markets like denver and salt lake city, or they did until they were forced to cease operations there. we will see how things play out in the supreme court. they're trying to get into as

many cities as they can get into. the broadcasters have threatened to move their networks to cable channels so that aereo cannot access them. is this an empty threat? >> we will have to see how this plays out. a lot of network executives will talk about that. i think it comes down to what is it that the license they have for their broadcast network allows them to do. if you are not serving the general public, that may help the argument. there are millions of people around the country who are using an antenna to access cbs, nbc, and abc. aereo isology that using is relatively simplistic. if they want to replicate it, they can do that and maybe put ariel out of business. we asked him about that.

>> is a free country. we invested a tremendous amount of money. this is a very complicated technology. the not suggesting we are only people in the world that can solve these problems. they are not that straightforward. to talkrow, we're going about this whole technology process, what do they put into the product and service to give you a behind-the-scenes look at all things aereo. a hugely this to be polarized debate. what is the single distinction of this court battle? aereo is having a direct relationship with the consumer, through the antenna, they have created technology that allows you to have a one-to-one relationship in the same way as

if you had an antenna on your roof. it is about each side's ability to make that case in court. a polarizedt seen debate like this in years. this is a huge deal. >> we may not get word of it until the end of summer. >> thank you, john erlichman. coming up, spring has sprung. still talking about the lousy weather? that is coming up next on "market makers." ♪

>> does mother nature has an equally extreme spring in store? right nowhe weather for new york city, it feels like three degrees outside. was winter as bad as it seems?

that long ago we were talking about the polar vortex. it was feeling like 20 below zero in new york city. we will not see temperatures that cold, but it was a cold winter. when we start ranking the winter season, this one came in and around number 34 when it comes to temperature. we did see a lot of snow with this winter season. saw the snowiest winters ever. other cities saw this winter as one of the top 10. it was a record winter for many places. >> 57 inches in new york this past winter. there is still some snow hanging out by my driveway. going toing flooding be an issue? >> another place we saw a really cold weather for a sustained period of time if the great northernion and the

plains. a lot of rivers start there. we're going to see some possibility of flooding. the spring flood forecast calls for moderate flooding in areas like the red river. likely to see the ice not rapidly. >> what determines a bad flood? how do you get to a 1993? perfectlked about the storm, all of these factors coming together. it is the same thing for the flood. rapid snow mall, increased rainfall, and a quick warm up in the temperatures. when that happens at the same time, water has no place to go. that is why we see flooding. dash down the mississippi river does flooding occur? past st. louis? >> we had flooding as far south

as louisiana. it can go pretty far south. it depends on the low lying areas and their proximity to where those ice jams occur. they tend to cause a lot of problems when the water cannot flow freely. >> you have california which suffered a drought this winter. they did get some rain and some snow. and he drought relief in sight? >> not really. we're coming into the time where the season is improving in terms of the drought. when you look at how severe and serious this drop was, -- this drought was, it was a record year for not enough reciprocation. we're likely to not see any relief in sight. this past year and recent years prior have been record-breaking. it is a very serious problem.

>> thank you. >> every time she shows up, i learned something. tradingis options showing us today? we're about to go "on the markets." ♪

>> that does it for "market makers."

andand i sat in for erik stephanie. >> stephanie will return on sunday -- on monday. look at the tension. but from a. >> i want to see her in action as a mom. send in another picture tomorrow. tomorrow, a ground-level view of the fight over immigration. we will speak to the mayor of el paso, texas. the hour.inutes past bloomberg's television is "on the markets." >> we are diving into derivatives. a two-day losing streak today.

consumer confidence overshadowed a drop in home sales. the vixen is closing back below 14. max, bear with me. i will run you through the data. strong consumer confidence. soggy housing data. manufacturinged index showing a contraction. what are the catalysts for the options market? the inconsistency of data we have seen over the past months. we are seeing less and less major catalysts reflected in the range bound vix. hovered between 14 and 16 and has not broken out either way. the declining vixen volatility is reflected in the declining market volatility. >> one stock we are seeing a pop

in is nokia. they said they were going to delay their sale to microsoft a cousin of some hurdles over asian regulators. question is whether microsoft will use this as an opportunity to get out of the deal. is that what you're seeing in the options market? >> that is the underlying theme. microsoft entered into a deal with nokia. now that there are some delays in hurdles, whether or not microsoft uses these hurdles as an excuse to potentially pull out of the deal. >> based on the way that traders are playing the options, you think some are betting microsoft will back out of the deal. >> i think people are nervous about it. they are trying to guard against that possibility. index has been a big topic the past few days. is biotech in a bubble?

is trading at 400 times reported earnings. trailing ofimes the the s&p 500. if you talk to people into met with the space. it does not train on traditional fundamentals. they trade on the markets of potential for their drugs, the potential of new drugs in the pipeline. it is more about growth and the pipeline than about fundamental valuation metrics. >> what is your trade? >> it has been a strong uptrend. we have seen other corrections of this magnitude over the last year. i would go a little further on the curve and look to june options. the etf is the only game in town as far as i attack or index

products go. i would look towards the june call spread. a gives a nice range of upside at a fairly low price. given the trajectory of the trend, i don't think it is impossible to get there. >> thank you for joining us. ignore the technicals, stick with the fundamentals. markets"e "on the again in 30 minutes. "lunch money" is next. ♪

>> will come to "lunch money." welcome to "lunch money." i'm adam johnson. here's what we have today. the ceo sees only one way out of this battle broadcasters, winning. is gettingump bigger. the carmaker slammed with some lawsuits following that massive recall. a wage war in nation. two sides of the wage debate. we will do it out right here -- duke it out right here. tougheste world's sailing races.