>> live from bloomberg headquarters in new york, this is "lunch money." >> welcome back to "lunch money." i am adam johnson. intech, it is all about the launch. productsbringing new and new competition. movie producers ron howard and brian grazier trying to make video for the digital generation. by the way, they are short videos for short attention spans. we have heard about high-frequency traders, but how do you write a best seller?

and lands for reinventing the modern corporation. is up.ally, marvel captain america leading the charge. we will kick it off with what everyone is talking about. in armyrs ago psychiatrist shot and killed 13 people and wounded four others. fort hood, texas. last night, another shooting at the same base. the shooter killed himself. >> within 15 minutes, first responders, emergency police and emergency services responded to the scene, engaged the shooter, the shooter was dead from a self-inflicted gunshot wound. >> the shooter was intensified as specialist ivan lopez, a veteran from iraq. he was being treated for

posttraumatic stress disorder. president obama got the word last night in chicago. >> any shooting is troubling. obviously this reopens the pain of what happened at fort hood five years ago. we know these families. sacrifices that they make. obviously our thoughts and prayers are with the entire community, and we're going to do everything we can to make sure the community at fort hood has what it needs to deal with the current situation come up but also any potential aftermath. situation, but also any potential aftermath. >> that job falls to the defense secretary hagel. >> fort hood is still locked down. we are still getting the facts. it is a terrible tragedy. we know that. we know there are casualties, both people killed and injured. we do not have all the facts

yet. we will get those. it is still under investigation. >> secretary hagel, along with other military leaders reached by the president by phone. the president appointed the defense department to leave this investigation. a big heart of that probe will likely be the issue of posttraumatic stress disorder and the u.s. military. 20% of returning veterans will have posttraumatic stress disorder. and other 20%, traumatic brain injuries. before atta testified senate panel on this very issue of trauma among veterans. he said the military should include in its diagnoses. these are real problems. it is unacceptable to have the process we now have in place." they have not necessarily ruled out terrorism. more news from washington.

the high court struck down a decades old limit on the total amount donors can give to federal candidates and parties. the court was split. this one was tight.5-4. phil mattingly has the winners and the losers. >> the dnc had to keep the powder dry a little bit, because they were opposed, but they will benefit as well. the implications are party candidates will get more money directly run big money donors. that should, you would assume, take some money away from the dark money groups and the super pac's. all 36 senators who are up for reelection in 2014, you can max out donations for each one of them. that is the big change. for donations to everybody are now gone. but what is amazing the big-money donors are already

hearing about this. they are already getting calls from fundraisers. even ones that were close to the limit already, they no longer have the excuse of, hey, i am maxed out. i can help you out. a single individual can now million tohan $3 single party candidates and house candidates in 2014. how these strategies work out on this is going to be one of the interesting parts of the follow-up. we talked to a couple of campaign finance lawyers who said what they think the main thing that is going to happen our joint fundraising committees set up by these most senior members of congress, those will be able to funnel checks to different candidates. how those work will be the most interesting thing to watch. >> ok, the rules are the same for both hearties, but the supreme court decision is a blow fighting big money in

politics. follow the money train. michael lewis wrote a best seller. he will tell us how he does it. and amazon joining in the fight for your living room with a new set top box set. before we had to break, bill clinton says he would not be surprised -- are you ready for this? it's aliens exist. the former president disclosed that on a visit to jimmy kimmel last night. vegan, you only get half a pizza. do you miss having she is? i missone our two things about this diet, i love hard cheese. do you miss more, being president or cheese? [laughter] well, i liked being president more than i liked cheese. >> when we come back, i want to ask you a question. fill in the blanks. next

election, my blank will run for blank. we will be right back. ♪

>> this is "lunch money" on bloomberg television. we are also streaming live on tablet, andm, your your smartphone. the u.s. government was behind

creating a twitter-like service in cuba. the purpose? encourage citizens to voice their dissent is fact and with the government. that, by the way, is it factly what the turkish president wanted to avoid when he shut down twitter. now turkey's highest courts has ruled that the government blacked out of twitter limits individual rights and freedom of expression. microsoft is working to catch up with apple and google, updating its smart phone with voice search and offering it for free on tablets. strategy.is about the >> the live tiles bring information to me that i care about. is not just about the applications you want to launch. it is about the people and the things that matter to me. -- if you are searching

is aomething, cortana personal digital assistant that will do know you. it will understand you prefer vegetarian over teriyaki. it will learn more about you and become more personal and meaningful to you. >> and other tech news, the aol bigder steve case at a surprise for 10 participants. ready for this? he is back in a startup. yeah. he will invest $100,000 in each of those 10 startups. microsoft the latest in the giants who have joined the fight for streaming. the amazon settops tv? an up close look at the device. >> the most mark book thing, it thing,ty -- remarkable it is pretty small.

it is smaller than the apple tv device. instead of white, it is black. it has a whole lot of ports on the back of it. hardware.ven the the physical properties matter less than what you get with it, what the and her face shows you, what you have access to. bloombergtv, for one, as peter showed on the demonstration. also, the other thing to note is if you do not have a prime subscription, there is less to watch on it. even though it is a nine -- i-99 dollar box, like apple's, you need to fork out another $99 to get access to a lot of the streaming shows and movies they have on their. >> there is one tiny little thing that might trip the block with this amazon fire tv. our very own sam grobart explains. >> amazon announced fire tv. it is their streaming device to rocha. with apple tv and

i wanted to find out more about it. so, i went to firetv.com. it is a streaming video site. it has more than 17,000 titles. those titles have names like "stick it to the man" and "sl uttier and sluttier." om is a tviretv.c site. and has been for some time, i am told. this gentleman running firetv.com may have run into a windfall. >> i love that guy. finally, in an exclusive interview with "market makers" a schatzker, barry diller shared his two cents on the set top box. >> for those of us who have

apple tv, you know, no set-top or any of them -- no set-top box. little tiny thing. , no bigs, no wires deal. just plug it into the television set, have a broadband collection. amazon certainly would be a player in this. many, many others would be. i think it is great. addressed the issue of whether we are in another tech bubble. >> we were in the bubble in the 2001 internet collapse. that was when there was very little revenue going around. there was very much audience accumulation and the growth of the internet. prerogativesess were not apparent until this and peoplepricked said, no, you do not have any revenue and you are finished. that is not the case now.

you have too many internet -- also i am the chairman of expedia, so, those businesses are not, i think i'm a part of a bubble. i don't think it's a bubble. >> producers ron howard and have a new venture. we will hear from the hollywood titans next in media. and a small business that lets you skip the doctors office. they face big challenges trying to get bigger. that is next on "lunch money." ♪

onthis is "lunch money" bloomberg television. we are also streaming live on bloomberg.com and your tablet and your smart phone. i am adam johnson. walt disney acquiring the largest youtube network -- i should say maker studios. revealedwarner bros. a investment inmachina,

network focused on videogame culture. now ron howard and brian grazer form a studio called new forms that will create digital shorts. they talked about how the partnership came together. >> our core mission is to tell great stories. the way we have been doing it over the years is through our channels. we have more channels than anyone else. we have been growing market share. we head a hell of a run. the way people consume content is changing. it is not just on the tv set. we started this journey of what is going on on youtube, what is streaming content. as we looked at that space, no one was laying hard and effectively in the scripted area. we looked around and said, who are the best storytellers of our generation? who can engage a generation on the big screen, on tv, and why

can't we do that in the streaming space? so, we reached out to ron and brian, and ron and brian had also been exploring this area. we said together we can really make something happen. that is really how it got started. experiment didd with short. he had a site called pop.com, if you remember. >> the medium of short-term is very enticing. it scratches an area that you just can't with a television show or a feature film because of the way the narratives have to roll out in the way the care others can unfold. yes, we have always had a fascination with it. we have not and in its in a long time. every once in a while i would go to erect something for funny or die. i have always been intrigued. i would go to direct

something for funny or die. experience. they have the experience with it. this really ignited our belief that you should approach it, but you have to approach it in a new way. you have to reach to the people who now for some years have actually been exploring it creatively, and you know, it is going to be great to be a part of it and to grow a studio small those very specific ideas. >> ok, what is the difference between distributing and creating versus doing that on cable tv? the executive director and the creator explain. business, wele have a 11 channels, but we have in there for 15 years building those channels. great piecen have a of content. we can put it on and it can be

available for everyone around the world to consume. it is a real democracy on these platforms. the great content moves to the top. the exciting thing is we can scale up quite quickly because we can reach everyone. this is not like the cable business or the broadcast business. if you have a great use of onset, it gets pushed all over the world. there is no one better at creating great content than ron o'brien. and also finding some of the great creative people to work with, which is a great part of this. >> i'm so excited about the collaboration. just as a consumer, i am out there. i am watching. i am absorbing. i am fascinated by it. it's great to have a really compelling reason to get involved and understand it and build upon it. >> one of the things that ron and brian felt about this was creating a studio, they will be running the studio as the creative officers. opportunity for

so many people out there who want to tell great stories that der ourder -- can come un pen. >> how is it different doing something scripted versus a tv show or a movie? >> we're going to learn. you have to find that secret sauce and whatever it is needs to be addictive. i think that is the goal. it will also be very interesting as we go forward to look at what we know, what our peers know, the way we have been telling stories, and what applies, what does not apply. i think a lot of it will actually applied. but it is going to be fascinating to again collaborate with people who have been in the medium, understand it, understand the audience in a way that we don't. it is a fantastic learning experience for us, as well as, we hope, a good business. >> from one creator to another,

we will hear from the man behind marvel about what excited him going to movies as a kid. the legendary stan lee when we come back. and he was once the ceo of ibm. stan milano. ♪ >> it is 26 minutes after the hour. that means bloombergtv is on the markets. i'm julie hyman. let's look at where stocks stand today. we are coming back from the record high. yesterday we had worst than estimated numbers in the service sector as well as the weekly jobless claims. in terms of stocks we are watching, we're watching two different stocks. class a shares and the class b shares. the class a shares are now the ticker googo.

the b shares are trading under goog. ♪

>> this is "lunch money" on bloomberg television. we are also streaming live on tabletrg.com and your and your smartphone. i'm adam johnson. firefighters in brazil battling a massive lays in san paulo. fire officials say the blaze may have been started by a short circuit or possibly a cooking gas canister that exploded. in china, rescuers are trying to reach a dozen workers who became trapped when part of the high-speed rail tunnel collapsed. they are trying to build a

tunnel for the actual rescue. the rail tunnel is in a province in northeast china. four people were treated for nonlife threatening injuries after their suv collided with a train on wednesday. houston metro police released surveillance video of the driver trying to beat the train. don't do that. two adults and two children were taken to the hospital for treatment. the suv driver was ticketed for running a red light for -- by police.ton metro michael lewis has created a stir across wall street with his new book on high-frequency trading. he joined us this morning on surveillance and we've talked about his assertion that the hadets are rigged that he on 60 minutes on sunday night. we also oust dumping out. how he learned to write. >> i learned in school.

you are just trying to get your particular vision down on the a particular -- you see, you learn something in the world. you are trying to explain it to the reader and do it in your voice. i think that comes in a lot of ways from my father because i grew up with a father who had an extremely articulate storytelling -- >> you grew up in the new orleans tradition of the english language. walter isaacson. you work with arguably be editor in america today. does he rewrite you a lot. do you rewrite your self a lot? >> i read write myself. he plays a very critical function. he tells me if a story is running off track. i lost it the reader. he does not understand it in some way. , when it is really

not working, when the prose is not working, he is able to tell me. >> just rip it up. >> rip it up, start all over. >> he taught me in "lunch money ," once you have the reader for the first 40 or 50 pages, you can take them anywhere. i was worried how do i explain the mortgage bond market. without putting everyone to sleep. i knew a large chunk of it had nothing to do with me at all. he said, don't even worry about it. by the time you get there, they will follow you anywhere. where that environment you are taking the reader on a journey and delay trust you. "moneyball" come from? >> the origins were in free agency and its ball and i got

curious about the discrepancies and salaries. >> you got serious. where did you learn to get carry us? >> that is a very deep question. i went on a book tour where my interest in me outside world is deadened, and if i felt the way i feel now all the time, i would not write books. but it is true. i get interested in something and i'm more like a dog with a bone. almost all the books, there is a question at the beginning of it. the question," was, if the market is that efficient for baseball players, how come these teams are not win games? it is the thread on the wool sweater. it becomes a very profound question. burninge has that

curiosity as well. he wants to fix global companies. his words of wisdom or next. big companies are not the only challenges. our series -- small to big, next. ♪

>> this is "lunch money" on bloomberg television. we are also streaming live on your tablet and your smart phone. i'm adam johnson. ran ibm from 2000 until 2012 and he is not done. yes yesterday he launched the center for global enterprise and he explained to trish regan on "street smart." >> there are certain things that will always be human interaction. there is a lot of study around what is global, what is local? you will never have a substitute

for people on the ground, establishing relationships, serving customers or clients, wherever they happen to be. people talk about, no, the internet you don't need any of that. i used to always say, our address is not planet earth, milky way galaxy. you sell to a company him up country, new york city, seoul, korea, beijing, it that are, at that are up. -- etc. etc. goes on all over the world. normally there are small teams to interact, not always face-to-face, but oftentimes in a face-to-face environment. at the reason for that is you need to build trust. trust goes on within the corporation itself. youou need to make sure have those opportunities. >> if you're going to create this global model to provide accounting services or technical

services for your entire entity, if bloomberg llp were going to do that, you need to establish trust in that relationship. if you are a company operating in a country, if you are ibm operating in china or india, you have to be trusted. the only way they will be trusted is to do things to benefit that society. trust is very important in today's world. >> he is the man who got ibm out of the pc business, focusing instead on software. this was a hard sell at the time, hard to investors, the board. hard to employees as well. >> the challenge in tech, we had been very successful -- ibm, microsoft, hp, dell. then you become -- you fall in love with yourself. you fall in love with your business model. these future businesses potentially are not as attractive financially as the sos you are currently in, a

there's this constant tension within the organization. it is the ability to be a droit, agile to marshal resources for the future. i will give a quick example. ibm sold bpc business. business. there was great criticism that we missed it. i think you would agree today that was a very small -- smart move. >> yes. >> given the moved to mobility. we saw the data. we concluded that was the path -- that was the past, not the future. i think history proves we were correct. that is my example because a lot toorganizational resistance believe microsoft and intel created the pc. we collaborate to do that.

>> so how do you as the leader of the companies say, ok, i am going to do the opposite of what we have traditionally done and maybe what the media wants us to do and take on that kind of risk at a time when a lot of the cards are stacked against you? >> everybody thinks that ceo's are the ultimate celebrities that can command resources. that is not the case. and ibm, there are 400 or 500 really smart people. you really have to persuade them through the fax that this is what is going to happen. we had to analytically make the case to senior management. this is our point of view of the future. here is our role in that point of view. here is your role in that point of view. and we need to go there. >> kind of cool hearing how he did it, right? companies large and small face challenges, especially ones that are trying to grow. this is the focus of our ongoing series on "lunch money."

we call it small to big. the big challenge here? dr.-patient confidentiality. tureproof is changing the face of mobile help and we are changing the way doctors and patients communicate. to describe aing rash, it is easier to show a picture. if you have a child doing some strange movement, it is easier to share a video. having the ability to see a photo of a wand, they are able to keep the patient out of the emergency room 50% of the time. a year ago, captureproof started in the mineralogy market. we have expanded to dermatology,

plastic surgery, and most recently cardiology. one thing that kept me up at night forever was fears about our security. store asian photos on the phone and it is not secure, it can be a $50,000 -- patient photos on their phone and it is not secure, it can be a $50,000 fine per photo. go.data is encrypted on the there are two factors of authentication necessary at all times and no data is ever stored on the device itself. captureproof just received an innovation award from the american heart association and two of the top patient care realizations in the u.s. are paying customers. i believe captureproof will be a name in every household, and the

ability to take photos and share them with your doctor will have a positive impact worldwide. marvel president and comic book artist genius stanley talks about what he was excited about as a kid at the movies. and the secret to box office success? we have that coming up in pop. , policee go to break noticed a vehicle with a fake license plate. they pulled it over and founded the contraband. the driver of the car is skate. ♪

>> this is "lunch money" on bloomberg television, also

streaming live on bloomberg.com and your tablet and your smart phone. i'm adam johnson. marvel's "captain america: the its theatersr" tomorrow. four years ago when disney purchased marble for $4 billion, people wondered if it was a good idea. naysayers are biting their tongues now. week'ss success is this cover story on "bloomberg businessweek." art was created by marvel specifically for this issue. stan lee set down with jon erlichman to talk about what excited him about going to the movies as a kid. >> i remember when i was a kid. everybody wanted to see king kong. everybody wanted to see frankenstein. people love the things that were bigger than life.

they did not make that many until recently when the producers discovered that these superheroes are just the most popular things ever with the public. >> you can watch our full interview with stan lee tomorrow on bloomberg west. that is at 1 p.m., 6:00 p.m., and again at 11 p.m., all he's done. when it comes to the superhero movie, marvel seems to have found the winning formula. we explain how these guys do it. >> when "captain america: the opens on friday, april 4, it will be marvel studios realm night movie in six years. all have done well at the box so.ce, some phenomenally how do they do it? here are four keys to their success. stick to the comics. for years, hollywood screenwriters tried to redo marvel's ironman argent story

because they thought the one in the comic books did not quite work. >> my turn. >> marvel said, no, let's do $585 ironman grossed million. the company has tried tuesday faithful to the comics ever since. do not cast megastars. werth was ais hymns relative unknown when he was cast as "thor." >> never! notis celebrity did overshadow the character and marvel did not have to pay him a ton of money. it takes a universe. years ago marvel sold the rights to "spiderman" to sony for a pittance, which they know now was a mistake. but marvel has a universe with more than 5000 characters with storylines that weave in and out

of each other, culminating in a megaproject like "the avengers." and finally do not forget the sequels. world war ii movies do not sell tickets, but you would think the studio would move the captain american origin to present day. view,rvel took the long starting in the past, moving to the present, giving him a enough fish out of water angst to fuel sequels.s -- several >> marvel's greatest hits so far? $1.5avengers," raking in billion in 2012. today's mystery meat -- are you ready for this? a whole new perspective on the word "fantastic." we're showing you

were etched onto a single particle of sand. ♪

>> it is 56 past the hour. that means that bloomberg television is on the markets. i'm julie hyman. let's look at stocks halfway through the session. we have some climbs, not big ones across the board. of the

nasdaq is leaving losses, down one percent, pulling back from yesterday's record on the s&p 500 amid worse than estimated economic data. have selling in stocks in the buying of treasuries, that is pushing yields lower, the 10-year going to two point 78%. we continue to look at the new book "flash boys." stephanie ruhle and eric shafter withik schatzker sat down an outspoken critic of high-frequency trading. >> it is not that high frequency traders are all bad, but there is a percentage that make money at the it's as of long holders. very few make money at the expense of very many. there is a problem with market structure and the problem with these high-frequency traders trading ahead of institutional orders, knowing they have a large amount of shares to buy

for them to perform. so, they are sitting's for the institutions. ducks for the institutions. adam johnson has a look at this with today's inside an action. >> high-frequency traders are different than you and me. here's a little inside an action. shops that elevate the status of the technologist do a high-frequency trading the best. i mean, it's about flickr technology. elevate the technologist. what a concept. elevate the technologist. do a littleed me to elevating myself. if that is what it is all about, innovation, how do we find companies that innovate? here is what we did. we used r&d spending as a proxy. we looked at all of these companies that have r&d spending

as 10% of sales. that is a high bar, by the way. and where spending is growing by at least 10%. out of 500 companies, only 24 maybe list. i'm going to show you 10 right here. were biotechf them companies. amgen, expedia, facebook, qualcomm, st. jude medical, western digital. these are 10 of 24 names. i posted all of those names on twitter @ajinsight. here is why you care. it's real simple. you invest in your business. where did it go? come on back, little friend. this group of stocks year to date -- look at this. here it is. up six point nine percent. versus the s&p 500, up two times. investing your business, ok, and people invest in your stock. adam.nks so much,

now to highlight a couple of movers and today's session. barnes & noble. shares of the struggling bookstore chain of fallen the most since june. liberty will hold onto about a 10th of its initial investment chain.bookstore and seaworld entertainment, watching those shares as well. drop in a 13% attendance in the first quarter. the company has been giving deep discounts over the past year. we have more on the markets in 30 minutes. ♪ . .

♪ alexa live from pier three in san francisco, welcome to "bloomberg west" where we cover innovation, technology and the future of business. tensions rise over income inequality in san francisco. march one planning to twitter and a protester vomited on a yahoo! bus. we will talk more about all these hot and issues. plus what do tech execs think of the upcoming series "silicon