wax welcome to "lunch money" where we tied together the best stories and business news. take a look at the menu -- in motors, make it 2.6 million -- gm widening its recall. jeep -- the chief dignity for near full in washington. talk about an earful -- chris christie, the governor of new jersey says the facts speak for themselves. in turkey, the prime minister may have a beef with social media, but can still win the elections. one of the largest makers of

faucets, toilets and seeing is right at home in wisconsin. in sports, a mari means business. we will talk about his ambitions off the court. we will talk about -- we will kick it off with what everyone is talking about. >> the stock market is rigged. in globalconic market capitalism is rigged by whom? by a combination of stock exchanges, the big wall street banks and high-frequency traders. >> that was michael lewis, nonfiction author on "60 minutes" last night. you've probably heard about his books as of experience as a bond trader and baseball. most recently, "the big short" about the housing and credit bubbles of the 2000. now he has a new book called "flash boys -- a wall street revolt."

it's about flash trading in the high-speed algorithmic strategies. here he is once again. >> insiders are able to move faster than you, able to see your order and play it against other orders and ways you don't understand. they are able to front run your order. >> what you mean front run? >> they are able to identify your desire to buy shares in microsoft and buy them in front of you and sell them back to you at a higher price. it all happens in infinitesimally small periods of time. the speed advantage the faster traders have is milliseconds. fractions of milliseconds. but it is enough for them to identify what you want to do and do it before you do it at your at yourwill stop -- expense. >> he's not alone in his analysis. we decided to ask some people what they thought of his

comments, including this man. >> high-frequency trading of securities is good. produces liquidity. frontrunning the market is bad. rex that was the new york attorney general. two weeks ago he said he's looking into the conduct of high-frequency traders and the stock exchanges that work with them. spoke with "market makers" crew this morning. >> the game has gotten very complicated. the sec is looking into this and commissioner spoke up pretty forcefully about this. they need to make moves to change the regulatory structure. we have a system with more than 60 private and public exchanges interlinked and there are cracks in the system. high-frequency traders in this race for speed try to use the milliseconds they have as an advantage to front run markets and take advantage of the cracks. the sec has to look at some new regulation in my view, but there are other things that could be done like putting speed bumps

in, and there are a variety of ways to this, just to slow down the process and take away the arms race. >> but it was the sec that mms and this system that has the cracks in it. when i look back at the way specialists operated, they knew so much information and could seemsl bid ask and now it it's more fair than it was 15 years ago. >> i don't think so. it is important to distinguish between high-frequency trading, which is a good day. presses the bid ask range and are those folks trying to take advantage of things to front run the system. thatu can get information someone is dumping, i think he's microsoft as an example, and you have the ability to know that a few seconds before people can execute the trade, just milliseconds. the other piece we have to look

at is the race for speed is inherently dangerous. that leads people to take more and more chances to take advantage and i can lead to destabilization. >> you describe it as an arms race will stop is by definition dangerous? i ask this question only because in every other industry in america, we celebrate technological advance and celebrate the use of technology to solve problems and build better mousetraps, except in the equity capital markets. his perspective, he's now the attorney general, but he says from his perspective it is legal. >> we are not prejudging the situation, but your point on regulation is a little bit off. we tend to be market centric in new york. we have speed limits on airbags and celebrate technology. we have systems so you can

cancel your credit card is stolen. there are ways to have checks and balances. what's being proposed is in the way of speed bumps. it's a new conversation and i support this idea of frequent batch auctions. you have all the trades up for one second and then it allocated by price, not you got it a few milliseconds before the others. was featured and they have their own way of putting a speed bump. this conversation is just beginning to prevent frontrunning and to ensure markets are safe. >> while the new york attorney general looks for answers, the debate is going on all stopped and we had our own on "surveillance" with the ceo of high-frequency trader white's speed and a former morgan stanley agent chairman. >> i don't think the market is right. -- i do think you have an issue with executable

orders and phantom borders that he does bring up in the book. that is a problem because you go to execute an order and you think you can execute and it's not there anymore. >> who gets the demised in that situation? >> where pointing a lot of fingers and saying retail guys are getting victimized. in order to sending add high-frequency trading firm or using a strategy behind it. by --re contacted >> this is not about the little guy? who is it about? michael lewis wants to sell a book. he's on "60 minutes" saying it's about the little guy. is he wrong question are >> it's about lock orders. why would you put the block order up when you could have a this isder to store >> just pure journalistic

sensationalism. flash traders are bit players compared to the biggest raider biggest raider of all which is the fed. the fact he saying the market is rigged sounds like a computer and back room conniving to squeeze this guy or that guy. >> this is a good debate. michael lewis is going to make an appearance here on bloomberg. he will be on "market makers" on wednesday and then on "surveillance" on thursday why here on bloomberg television. from wall street to washington, gm's new ceo is set to testify before congress. did the company reject a plan to install new ignition switches lester mark and eight -- an interview with the star super -- star basketball player. at the box office this weekend "noah" grabbing the number one spot. the biblical asked -- debacle at

the starring russell crowe rang up $44 million. >> man corrupts this world. >> a great flood is coming. ♪

>> general motors recalling 2.9 9 million cars because of faulty ignition switches. newly released documents show the company decided not to fix the problem all the way back to 2005. the reason was supposedly it was too expensive. our resident card guru matt miller weighed in on what this means for g.m.'s bottom line. >> g.m. kicked it off with the corvair and their battle with ralph nader. that started mitzvah. then they have a problem with side saddle tanks in their trucks causing explosions which is always unsafe. now this. a new position.

>> as a company, it's not a new position. is interesting. we tend to think of general motors as this company that has a reputation for putting and-cutting before safety always fights against safety probes in washington with rick wagner and previous heels, so it's a new company. it went through the bankruptcy organization and was run by washington, d.c. for a while. now coming out the other side, it's new and the way mary has gmconded is different than owners responded in the past. she was very contrite and hired an outside investigator to look into these things. she's put a vice president in charge of these issues. >> she has apologized, and she's also been forthcoming with information that has not been flattering to general motors. >> which would not have been the

case in the past. she's taken the bull by the horns in a different way and maybe general motors is going to show their colors in a real new companies out -- new company now than they have a pass. they can't be good for their sales numbers because when consumers hear this, they don't want to buy the product. liveoomberg will have coverage of the testimony with the q and a that will be with the house energy and commerce subcommittee tomorrow right here live on bloomberg television. another automaker facing challenges is tesla. the general manager for china has just resigned. our auto editor, jamie butters, talked about how his could complement -- could complicate elon musk's plans for expansions overseas. >> is certainly a setback. along the way, building the company, they've had departments in serial. it's not general motors where

they have a massive organizations. right now is when they need good salespeople. it is a setback. i don't know chang and i can't speak to how gifted he is, but this is not the kind of thing he wants when he trying to hit the ground running in china. >> in the u.s., tesla just inked andrew cuomo. if going to have to limit its direct sales approach. >> from now on, everyone has to use ehlers. it does not create a precedent, more importantly for a chinese and indian brand, to bypass dealers altogether. it providestime, some competition to new jersey. when you put up the map and as long as the states are a

patchwork. when you can drive to a state for another car, a gives tesla much more strength to negotiate with new jersey to encourage new jersey's legislature or regulars to allow them to do business or lose it to neighboring states. >> new jersey has already delayed the date from april 1 to april 15, the effective date of the band. is there some negotiation going on in the end it might be able to sell? goingre's a lot of action on in the legislature as well with the administration. these are administration appointees mostly on the board. would be hardit for the board to resource itself, but things happen, don't they? >> yes, they do. let's talk about fiat were the ceo claims deliveries will rise as much as 55% annually thanks to the finalized merger with

chrysler. the announcement was made today. fiat bought full control of chrysler in january. the ceo is to combine the two manufacturers in a cut -- into a company that will be registered in the netherlands though its primary stock listing will be here in new york. things are looking up at bmw. they're celebrating their 25th anniversary of my factoring in america by announcing a big expansion at its south carolina plant. spartanburg has a special place in the bmw family. for this reason, i'm pleased to announce that between 2014 and 2016, we are going to invest $1 billion in this facility. spartanburg will become the largest plant in our production inwork and a new milestone the history of the bmw group. >> that means bmw plans to turn out 450,000 vehicles a year by

2016 down there and spartanburg. the company will have to hire 800 additional workers, bringing total employment there to 8800 people will stop i like it. putting americans back to work. bmw is not the only ones feeling home in the usa. we will take you inside kohler, the brand that has been here for 140 years. governor christie speaks out for the first time since the release of his controversial reports. we have the details coming up. unityshow of force shows on the coast of south korea. those are some joint exercises with south korea earlier today. also earlier today, south and north korea firing artillery shells into each other's waters. the north calls the drills a rehearsal for invasion. washington and seoul insist the exercises are not designed to react to any clinical situation. here are more of those drills in

the raw. ♪

>> governor chris christie faced reporters on friday in his first appearance since the bridge gate scandal. as usual, he was his old charming self. >> the premise of the question

is so infirm that i'm not answering it. it's amusing to me when you guys write stories about what you think you are entitled to. what i think you are entitled to is the answers when i get them. >> the premise of your question is so riddled with inaccuracies and it's hard to respond. i'm up here trying to carefully answer your questions and i don't know if you can take notes or you're not listening, love for you to characterize my last answer as i didn't want to ask because i didn't want to know is so awful. it minis the job you hold. >> that's mr. christie. report commissioned by christie and paid for by new jersey taxpayers to the tune of a million dollars, by the way, was the result of 70 interviews and sifting through 250,000 documents. >> it's an exhausting report that follows the mandate i set out when we reach -- when we commissioned the review. one thing was clear from the beginning. i told him to find the truth, no matter where it led and turn over every rock they're able to

get to to get to the bottom of what happened and let me know what the truth was. whole truth for the and nothing but the truth. according to the report, it was all bridget and kelly's fault. she is christie's former deputy chief of staff. the report characterize her as emotional and weepy. the report also blamed port authority's david wild statement did not characterize him as being emotional or weepy. the report suggested kelly's poor decision was because religion boyfriend, also a christie staffer, just broken up with her. kelly and stephanie became personally involved. -- it is important to note none of those three were actually interviewed for those -- for this report. neither kelly, wild steam or kelly's legend boyfriend.

if the report sounds gender biased to you, you are not the only one. kelly's lawyer said -- pressrter at the conference asked governor christie about he thought the way the report treated kelly. >> i think the report laid out the facts as the investigators found them. however everybody wants to interpret those is up to your particular interpretation. >> christie's offensive against kelly may not be the best strategy. her lawyer has said if given certain legal protections by the u.s. attorney, kelly will cooperate with his investigation. her testimony can either corroborate christie's version or david wild steam's. it could be critical to identifying competing versions.

they toterday, mr. christie flew las vegas to woo sheldon adelson. he made a gaffe and described the west bank as occupied territories. the israeli government and mr. ailsa and would not consider those regions to be occupied. christie apologized and adelson accepted. nothing like a little bridge gate to give you foot and mouth disease. next, we're going to turkey and its ban on social media. ♪ >> it is 26 minutes past the hour which means bloombergtv is on the markets. stocks are rising following dovish comments from janet yellen. the s&p said to pose its fifth

straight quarterly gain. we're watching edward life sciences and megatron x. shares getting a lift today after the american college of cardiology released a study valves artificial heart reduce recovery time from surgery. ♪

>> this is "lunch money" on bloomberg television, also streaming live on your tablet and smart phone. i'm adam johnson. today's moving pictures now, where the video is the story. u.s. secretary of state john kerry says russia has to pull its troops back from the ukraine border if progress is to be made. he met with his russian counterpart yesterday who stressed the u.s. session on ukraine. >> in a frank conversation this evening with the prime minister, i made clear the united states russiannsiders the

actions to be illegal and illegitimate and russians actions over the past several weeks have placed it at odds, obviously, with the rule of law in the international community and we still believe, on the wrong side of history. >> those men agreed apical medic solution was essential to de-escalate the crisis in ukraine. additional meetings between the two have been planned. antigovernment protesters battled police in the streets of venezuela. andss raiders set fires through molotov cocktails at security forces who responded with tear grass -- with tear gas. violence has been raging in the country for more than a month. two more people killed, bringing the death toll from the and rest 233 people. forspanish journalists held more than six months in syria have been reunited with their families. they were kidnapped i islamist radicals well covering the civil war in syria. they arrived at a military airport imagery and to meet

their families. circumstances surrounding their release are still clear. -- still unclear. turkey's prime minister is celebrating -- his party won the meet its bull elections, but with only 46% of the vote. he's been powerful more than a decade and told thousands of supporters that the time has come to weed out traitors. i wonder if that's the other 54% who did not vote for him. elections took place after a delusion of recordings flooded the internet accusing him of corruption. understand when you don't like internet leaks, and you are the premise or, -- he vowed to illuminate twitter, youtube and facebook. >> twitter doesn't have much to do with the price of fish. it has dominated discussions about these elections,

especially since it was blocked a week earlier. >> i don't think this was a good move as people were communicating with each other. it was not a good inc. to do. >> he did the best thing, not just for him but for other people as well. he's protecting their rights. >> by walking twitter and youtube, he managed to deepen the divide between his supporters and opponents. the people who immensely ones who arere the outraged and affected by this band. , his base, are so mesmerized by his persona that they are ready to do anything he wants to do. >> this time around, he just wanted their vote. corruptionere allegations reportedly implementing him and his -- implicating him and his family.

for those keeping the faith with footer and youtube, what happens next could be equally epic. elections, corruption cases, it will probably be a move after the elections to criminalize usage. otherwise i'm a technically, it cannot be stopped. >> the government could unblock twitter in line with court rulings, but he's not a man known for backing down. >> there were hints after last night's results that he might keep the presidency. the elections will be held in august. he has promised to serve the nation no matter what his position. "lunch money" -- made in america. we'll take you inside kohler, a

household name that has been there 104 years. american success story -- we will tell you what he is looking to tackle, coming up next. the grass tackling -- is always greener for house speaker john boehner. he posted this on instagram on friday. >> i love green grass. ♪

>> this is "lunch money" on bloomberg television, also streaming on your tablet and smart phone. i'm adam johnson. our bloomberg series "made in america" looks at global companies choosing to manufacture here in the good old u.s. of a. today, we will go inside kohler. you probably know the name from washing her hands are doing the dishes. largestone of the

producers of every household item having to do with water will stop kohler is made in wisconsin and it has been made right there since an austrian industrialist founded the business in 1873. founded a family community in 2012 and it was called kohler wisconsin. his tree has shown kohler is going nowhere. history has shown kohler is going nowhere. >> we have a simple mission, and that is to improve the level of gracious living for anyone and everyone who comes in contact with our product. i have a son who is president of this company. he thinks i'm getting too old. has a longany

history of pride for american-made products. the family started the business year these products are made here and will continue to be made here. kohler family is keeping it here because the work ethic has been here for 150 years. when it says made in usa, when it says made in wisconsin that says something. you know you are getting the best. >> our biggest market is in the united states and they are served primarily by the factories in the united states. we import very little. elsewhereants we have make for the regions in which they are located. original kohler pottery built in 1927. what we do here is manufacture everything here from toilets and urinals to kitchen sinks. facility, we make about 100 different products every day, 30 different colors, for a total of about 20,000 different

sku's at any given time. porcelain is made from different plays coming from the kentucky and tennessee area. theseoducts goes to dryers and then we apply the glaze to it. the color ands it the smooth, shiny, blocky surface. sprayed, peace get it's ready to go into the kiln right away. yardiln is basically a 100 tunnel and in the center of that tunnel comments 2250 degrees. after he goes through the kiln, the porcelain is a solid piece with no air in it,is or anything. over the past 20 years, we've invested a lot in this facility. brand-new dryer technologies him a brand-new kiln, a lot of spray

robots have been installed. >> we are refurbishing this and pottery, webest could compete with virtually anyone else in the world. >> competition is always out shoes.even for toms they donate a pair for every one bod. now they are branching out with coffee. the founder and ceo joined trish regan last week. >> this is an entirely new business for us. when we looked at how he wanted to expand our one-for-one model, we are looked at -- we look at countries we are heavily invested from an infrastructure standpoint. we've been giving issues away at places like rwanda, molly, guatemala and peru for years. the areas you can have the most economic impact is supporting

coffee farmers by trading directly with them in these countries where we are already working. the the ability to sell coffee here and invest in water systems here makes for a good one-for-one model. >> it's a commodity like everything else and we've seen coffee spices -- coffee prices spike. how are you going to price, how are you pricing this giving -- given what you've got to pay on the ground? >> when you see coffee prices spiking and the impact it's superpremium teen and we are charging a rhenium price, we are going after market they call the third wave of coffee. it's like an intelligent, uptown, blue bottle. >> how are your margins on something like that? given you've got to pay more and

you've got to provide these countries with clean water. >> the margins are much slimmer on the wholesale level. we have a contract with whole foods. the margins are better in our own cafés. we've opened to cafés, one in venice, california and one in austin, texas. where opening one in new york on elizabeth street that will be open in june and now we have portland and san francisco coming later. the key to that is we have footwear for sale and eyewear for sale. those of the two products toms has been in, so building a café experience around not only selling the coffee but also hoping people will buy our footwear and eyewear when they visit. another revenue stream to fund our retail growth. >> what is your goal? do you want to take on starbucks? >> i don't think anyone wants to take on starbucks. opportunity in

this third wave of coffee brewing. looking at the cities we go to where we can really create a community space, we want people to come enjoy coffee and i feel i have to rush out or they are in an environment that feels overly commercialized. my livingfeel like room and have artifacts from our trips. even though our customers can go to mulally and meet the people we help give sight to, they do to see pictures and videos from the strips and have the experience and feel like they are part of it. >> coming up in sports, the final four is set. we will tell you who is in and who is out. we will also hear from the knicks forward and his off court ambitions. it's billed as the world's richest horse race.

here's how it ended. take a look. ♪

>> this is "lunch money" on bloomberg television. we are also streaming live on your tablet and smartphone. in sports, another bracket busting weekend for march madness and the final four is all set. aaron harrison hitting a three-pointer with three seconds left, giving the wildcats a 75-70 two win over michigan. all five wildcat starters are freshmen. we will see a lot of these guys and freshman years. saturday in arlington, texas,

it's going to be kentucky versus wisconsin and florida versus connecticut. florida has won 30 games in a row. connecticut was the last team to beat the gators. that will be an incredible game. amar'e york knicks relativity media known for its shows, but it's also a large sports agency. jon erlichman sat down with him agent is ceo happy walters. >> i'm a behind the camera kind of guy. relativity brings great opportunities to get involved in the film world which would not have been there if i wasn't involved with relativity. >> we brought his ideas -- i don't know if a lot of people know, but he was one of the producers of rock of ages which has been on broadway for five or six years. were chasing him down the

street after the show. >> did you hear about the movie business being this big money thing? you're looking at places where you can be investing and building on your career, what do you think about the film business? >> you want to be smart about what you are doing. >> we talk all the time and i say here's a project we're working on. it's pretty cool. the coverage and the three or four page summary of the script and see if you like it. blackbird, which is the movie we did together which comes out in november where he's actually a partner of ours and produced -- we shot that last summer. that's the first one we've done together in that capacity. guys investing on things where there's any risk at all of not being successful. >> sometimes you guys do these

digital shorts and team up with other members of the relativity family. of the likegoal that? just to get the word out and show a different side of yourself? >> absolutely. it's one thing when you can just show your acting skills and have a humor it -- humorous approach to it. >> it's not ask a ball, but it's got bounds. we're talking about today's mystery meat -- the latest exercise fad. you can't make this stuff up. trampoline workouts. ♪

>> it is 56 past the hour, which means bloomberg television is on the markets. let's get you caught up on where stocks are trading -- equities rising as we head into the early afternoon is -- early afternoon, following dovish comments from janet yellen.

the s&p is on track to post its fifth straight quarterly gain. the dow jones is up triple digit. the nasdaq rising as well, the best performer among the indexes. let's show you quickly what's happening on the treasury markets. u.s. bond selling off and yield on the 10 year up only one basis point. thised chair speaking morning said the fed is short of reaching its employment and inflation goals, but we spoke to one contrarian investor who told betty liu this morning that he is worried about rising inflation. >> history tells us you just cannot keep running the printing presses without it tipping into something that could be much worse. we are seeing the signs, very early signs of inflation turning any commodities area right now at the 20 commodities we

monitor. it's unbalanced, but only by a little bit. look at what has happened in terms of food prices, when you go to the supermarket, we are seeing -- the fact that no one is concerned about it makes me concerned. inflation in see food commodities. let's look at how some of those widely used food commodities are trading this year. corn futures up more than 18%. coffee has surged more than 60% due to a drought in brazil and orange juice is up almost 10%. was turned toes, stocks with adam johnson. >> a new month tomorrow means maybe we find some new stocks to buy today. time for a little insight in action. fresh of the portfolio. i want to share an observation carter were throw today.

in other words, he saying it has been a flat year. all these names that have run up big, maybe they are done and i should take some profits. that's meant there has been a lot of selling and created opportunities. here's an example -- netflix. it's been up big over the last several years and has had a recent correction. this correction right here, but it's simply gone back to the trendline, which is still upward sloping and their strong earnings growth. that observation got us wondering what else is out there ? least 200% inat the last year, that they profit taking candidate. but down at least five percent over the last 30 days. yet earnings are forecast to grow by at least 10% in 2014. i found 22 names that fit the

bill including netflix. are 10 of them -- activists, biogen, expedia to gilead, michael kors at trip advisor -- they've had a huge run ups over the last couple of years and traded down recently, yet they are still earnings growth candidates. on my twitterl 22 handle. >> be sure to get those names from his twitter handle. that doesn't for "on the markets ." in the meantime, "bloomberg west" starts next. ♪

>> live from pier three in san francisco, welcome to "bloomberg west," i'm emily chang. two big stories we are following, apple and some son going back to court, same judge. >> a different case. we will explain why things are so different in the trial. the damage will be in the billions but there will be some different details with the patents. >>