>> welcome to "lunch money." i'm adam johnson. exclusive interview with the secretary. bank of america's brian monahan gets a title not usually associated with the thinking that -- a banking head. finally, the final four. forget the "we're going to show the love the engineering that makes it all possible.

month, what of the everyone is talking about >> 192,000 jobs were added in march, schiavo economist forecast. the employment rate 6.7%, holding steady with last month. >> sounds pretty good. maybe we can get a little more context? >> this is probably the most boring jobs report that we have had in a long time. everything came in as expected. like most boring. that actually got my attention. can we read a little more to these numbers? >> the best news was the unemployment rate not going down. more people think the economy is getting better, think they can find jobs, and so they're going out and looking for work. that tells you at least admit we are on the track disease among improvement as the year goes on. the weather setback was not as much as people that, but we are

back on track. >> can we get some perspective on the u.s. and global economy, maybe from some of the biggest names in economics who might just be meeting in italy on a beautiful coastal backdrop? >> there is an improvement in the job market. there is also the employment rate that is high. the participation rate has cyclical factors. the labor market in the u.s. is increasing. >> how the exit will be made is in place, and in europe you have the buffer against inflation, and whether the germans are going to take it more seriously.

>> the fact about 37% of those who are unemployed in the u.s. have already been unemployed for more than half a year. this means that it will be difficult for them to find an effective, useful, productive and women because their skills have been lost or etc. >> so the background look nice, but the outlook on the economy, not so great. it has been hard to rejoin the workforce if you do not have a job. it is also hard for some to leave it. >> earlier today, a man who owns this network, he and i have had a relationship for years and years. we have had this conversation in the past. we agreed that we would work together on this circumstance, and the timing of this circumstance.

i phoned him just before the program and i said leslie, it has been great, you have been great with the net work is been great, but i'm retiring. >> this is really? you actually did this? >> yes i did. >> wow. [laughter] can i have a minute to call? >> david letterman, announcing his retirement last night on late night. he is going to leave the desk at cbs in 2015. it will end a 33 year run on tv. while he knew his day was coming , there was someone else who did not see his day coming. the e*trade baby. >> ok. this guy lost his job to kevin spacey. they want to target ads to older more seasoned set. here's one of the newer ads. ♪ >> i don't want to think about an ira.

i want to think about what i'm doing all day. ♪ >> i need some help i'm not alone. ♪ >> i don't know if that was an ad or saturday night live. say.chuck hagel has to that is coming up with our exclusive interview. putting together the floor of the final four. in honor of the king of late-night, here's david letterman on why he is really retiring. >> i just want to reiterate my thanks for the support from the network. all the people at work here, all of the people in the theater,

older people in the staff, everybody at home, see why very much. -- thank you very much. what this means now is that all and i could be married. ♪

>> this is "lunch money." today in nation, our exclusive interview with the secretary of defense, chuck hagel. he's in honolulu this week and he is hosting a meeting of defense ministers from southeast asia. the obama administration's efforts to boost his patient -- participation. his focus shifted to the shooting at fort hood, which has resulted in three deaths and multiple injuries.

the mental health of soldiers, this is an ongoing issue with the department of defense. washington correspondent brought the subject up during the exclusive interview. >> it is a terrible tragedy, and has been revisited once again on fort hood. our thoughts and our prayers go out to the families of the the the scope and those who have been wounded and who are going to continue to focus on them as we should. in the meantime, let the investigators do their work. we do not have a lot of the answers, we do not know why it happened, we do not know why he did what he did. we will find that out. this is 24 hours away from that terrible incident, so we are working very hard to ensure first of all the safety of all of our bases and of our men and women who work every day and their families have a so that they are reassured. we will find out. >> what does it say, sir, that the military men and women are

finding themselves in harms way back here at home as well? >> it is a terrible statement. i recognize that, we all do. like everything of you to figure out what happened, and what went wrong. we're adjusting to and implementing a number of recommendations that came out of 2009 incident last year. to further bring more security to our bases. we will see what comes out of this as to how do we assure in every way possible the safety and security of those bases. >> also a big topic on the agenda, east/west tensions with russia. the obama administration has been criticized for misjudging vladimir putin. >> i do not think anybody misjudged vladimir putin, let's go back to 2000 date -- 2008 when president putin invaded georgia.

this isn't a particularly new approach that he has taken. what you always have to do is you have to always be prepared for any contingency, any possibilities. i do not think it was a matter of misjudging putin, what his intentions were, why he did what he did. we still do not understand fully. the point of responsible governments is to have strong options and capabilities, and be prepared to deal with any contingency. it is a dangerous and unpredictable world out there. >> you are having to negotiate that in this environment of and dwindling defense dollars, tough budgets. you just resented one. has the situation in ukraine to

the crisis there, has that led you to reassess even the budget you just a minute? would you do things differently now knowing what happened? >> let's not forget the number that i presented to the president's budget is not my number, was not the president's number, that was a number that was already agreed to by congress in a bipartisan budget agreement in december. the $496 billion budget, we have already resented -- presented that number. president obama's budget was a bigger number, and we have asked for $116 billion more than the numbers are right now based on sequestration in the next two years and for this year a $26 billion increase in the budget as well. president obama made that very clear. >> in this crisis, does this case make that make your case for you that these numbers need to be higher? >> it is not just one episode.

what is it going to take to fulfill the missions and obligations of our defense department budget in order to assure the security of edi states of america? we laid that out in our testimony. we had weeks of continued testimony coupled with the senior memos today up there on capitol hill explaining what we need in order to fulfill those measures to ensure the people of the united states are safe and that we can do the job that we are promising to do to make sure their safety is secure. >> secretary hagel is on his way to japan next, and then he is going to stop in mongolia. here's peter cook asking about the upcoming trip. >> you are on your way to mongolia. you're the first secretary to go

there since don rumsfeld. when he left and they gave him the gift of a worse. my question is, are you prepared for a similar gift, it is there room on the plane? [laughter] >> i do not know if they would consider giving me a horse, but i would be privileged if they would give me any recognition of our partnership. probably there is no place for livestock that i have seen on that plane. >> take a look at this, this is no joke, or is it? speaking of leadership, guess which big banks have ceos that are underpaid? ♪

>> you are watching "lunch money ." we are also streaming live on bloomberg.com and your tablet and smartphone. bank of america ceo brian monahan made $13 million last year. what if i told you he is underpaid? that is the conclusion in the new study by bud crystal. we discussed that finding with betty liu. >> what he did was crunched numbers in 2013 scales, will return, and their tenure as eeo -- ceo. and created a going rate for each ceo. bryan moynahan's was about 30% lower than what he thought it should be.

company.eing this there is also other ceos that are well underpaid? >> there are. there are ceos that morgan stanley, the bank of new york, ups can they all had returns that exceeded the s&p last year, but had pay that was below what they're going rates are. >> what about the overpaid ceos? >> there are those two. and we have coca-cola, and eager, at&t, they have returns that lag s&p but salaries that are over this. >> we all love to hear what talk of executives get paid, but the impact of this? >> what we have is that ceo pay will always go up when the company's performance improves. but it does not always have a commensurate decline when informant goes down -- performance goes down. tracks one way more than the other. >> happy birthday, sam adams. just 30 years ago this week he

produced his first bottle of that hugely possibility -- popular boston lager. >> this big global brewing conglomerate, and many come to my end of it which is craft beer, there are 3000 craft brewers in the united states. all 3000 of us have seven percent or eight percent market share. i am paying for all of us to grow. sam adams is a little bit over one percent. we can double. when they have 50% share, they cannot double. >> you do not have the law large numbers. here's the most in question i will ask you today, what is your favorite flavor of sam adams beer? >> it is ill the original. i open my original, you'll find sam adams often longer -- boston lager.

beers. lots of other we're working on things like a stout, we're working on a aa pa -- double ipa. we are working on interesting flavors. we are like a chef, we are making a dish of food, i can make anything i want. i can use interesting wods, pomegranate, use tamarind, i can use rosehips can i can use powdered plum gevo or chocolate, or vanilla. i use all of those things in beer. >> alex also spoke with david about the challenges facing his industry. >> whether nature was really tough on our lines and all of a sudden united states the past year, but also in the northeast. we know that that storm that we

had rented the beginning of the new year was $30 million pretax impact to us. and then there was storm after storm after storm. our airline is headquartered right between washington and boston. it was a tough number in the first quarter. we have more here in april, but we are heartened because there is a timeframe restored look at easter and passover traffic. the snowbirds are still doing to travel as well. >> meanwhile, ceo no more. stepping down after being criticized by employees for donating to anti-gay marriage group. in only been on the job since last month, and he said he wasn't going to quit, but he changed his mind. another ceo in hot water, we're talking about mary barra. she faces some hot questions about why took more than a decade to recall those cars.

it led to at least a dozen deaths. a reporter talked about key leadership needed to get companies past crises like this. he spoke to betty liu. >> other industries and other former executives and ceos, it really is on the ceo to create a culture that promotes people to speak up and to really reinforce the idea that safety is important in a company. in the case of gm what we have learned so far is that under previous ceos a workout that involved -- they were not that involved in the recall process in making that decision. that seems like an outlier. >> is that unusual among automakers? >> it looks like it's more of an industry type problem where because it is such a complicated industry, so many things go into making a car, that ceos are kept out of the process.

when the recalls go in late in the process -- >> there are lots of bruises when you grow the ceo -- when you are the ceo. i go back to the truman approach, and that is the buck stops here. >> so where does the buck stop when it comes to selfies? the selfie seen round the world. the whole planet in hd. we're going to tell you all about the new technology streaming hd video in space. ♪

>> this is "lunch money." streaming live on bloomberg.com, your tablet, and your smartphone, i am adam johnson. secondary state john kerry says it is time for a reality check on the middle east peace talks. there's a limited amount of time they can give to brokering peace. crews searching for the missing malaysia and jet are working even harder trying to find the black box because the battery-powered data recorders usually stop transmitting signals about 30 days after a crash.

the malaysian aircraft disappeared on march 8. they're using underwater vessels and focusing on 150 mile stretch of the southern indian ocean. president obama greeted united states olympians at the white house. the president and the first lady complimented the group on their successes at the sochi games. the president said he had special thanks to snowbirds for forcing sportscasters to say back-to-back and other phrases. tradition going back to andrew johnson, he invited baseball teams to 1600 pennsylvania avenue after the civil war, and even presidents can get as excited as athletes. >> let's get a good picture. he wants to do himself a -- do a selfie. come on. [laughter] [applause]

>> so innocent at the time. david ortiz posted it at twitter, and it retweeted it added i plus million dwellers -- samsung retweeted them to all of their followers. they must really have something here. >> without getting into counsel discussions, i can tell you that the white house objects to attempt to use the residence likeness fors commercial purposes, we certainly object in this case. >> the white house is not too happy after learning that. the president was duped into thinking this was an innocent selfie. a samsung spokesperson would not comment on the rebuke from the white house.

it is hallowed ground cover that is why some are obsessed with getting the answer to a question that everyone knows the answer to. >> is there any other job you would be interested in? [laughter] [applause] comptroller of the state of illinois? >> not right now. >> sorry tom, he is the latest who tried to get hillary clinton to answer that very obvious question. let's just say she does run with a taste of reviews -- we got a taste of her views on current events. here's her take on vladimir putin. >> he is motivated by the past.

he wants to re-create he wants to reclaim it. he was to restore what he views as the proper place of russia in the world order. >> the future of the ukraine, this is obviously very serious business, and that is why the people running the government right now want elections to go off without a hitch, and they would do want this man to run. [applause] >> this is for real. a man who calls himself darth vader, was nominated for the presidency by the internet party of ukraine. he told congress that he wanted to turn ukraine into a galactic empire. parts of his application were questionable. the man is an electrician named victor. he changed his name to darth vader back in march. elections in afghanistan, they take place tomorrow.

series, a life-and-death situation. the taliban has vowed to disrupt the elections, and punish anyone involved in them. one journalist was killed, another injured in an attack in afghanistan's eastern province. they were traveling in their own car in a convoy of those delivering ballots. the journalist killed, she had been covering afghanistan and other conflict zones for years. elections of the first democratic power transfer in again since -- afghanistan's history. president karzai cannot run again due to term limits. 50% in a war zone is only a slight less in the 37% that we saw in the last for the 2012 is eventual election. we will be right back.

♪

>> we are off to space today. in view of the earth you have never seen before. discovery communications is partnering with a company called earth cast to streamline hd video from outer space. here is the director of technology. >> it is a pretty spectacular feat that we pulled off. we have had a lot of excitement to get to this point anyway. we're going to be streaming ultra hd, which has never been accomplished before in our kind of market. we are shifting the technology. >> what kind of cameras being used? where is it on the international space station? and what kind of data feed are we talking about?

how do we all get to enjoy this? >> there are two cameras, one that is always on, and like a typical satellite. the other is on a pointing platform that can point at a location on the ground and follow that target on the ground and capture the ultra hd video and stream it to earth. >> what do you hope to accomplish with this? >> our hope is to democratize earth observation, and the future stewardship of the planet. i do not think any one country should be the responsible party for doing this, and we're really taking that to heart. we are creating a platform that has some magic. >> what about the commercial aspect? >> we are going to be selling data to normal large corporations, hedge fund, and government organizations that typically buy this. a lot of other avenues for academic and rmb are also part of our pipeline as well. >> we have hd cameras on the

space they should google what about getting people to mars? it could actually happen in our lifetime. cofounder and chief executive of the mars run mission. the first human settlement on the red planet by 2025. how he was going to do this. >> the big technical challenge is reading the back -- bringing them back. by eliminating that technical challenge we have already made a lot more strides. we believe that the biggest technical challenge of a permanent mission is having everything always up and running. there is no exit, and you want to stay there and make sure that the life-support systems, the students that they go outside with are always working. that's where production is

always working, and that will be our biggest challenge. we are on top of that. >> can you give us some idea of the technical solutions that you have for all of this? it sounds great, but i lot like science fiction. >> as soon as you except that it is going to mention of a permanent settlement, the technology exists. the rockets that we need to send our equipment to mars is existing technology. in the landing system, when you do not have a return mission, they are so much smaller than for a return mission, that is very comparable to the nasa curiosity mission. as soon as you accept that this permanent settlement, no new inventions are no needed -- are needed to go to mars. there's a lot of testing to be done before we can actually go. no new inventions are needed to land human safely on mars and keep them alive there.

>> how will people actually get to and from mars? may be on a virgin galactic flight? founder richard branson talks about the viability of commercial space travel. >> we want to let as many people as possible to become astronauts to go from one country to another in the fraction of the time that it takes. to be able to colonize other planets, to put hotels in space. two great mass of satellites that can transform things for back here on earth. >> to infinity and beyond. in the immediate future, the final four this weekend, and what about the final floor? we'll show you the technology underneath one of the get games and basketball -- biggest gains

in basketball. ♪

>> we have your weekend tv watch lists. silicon valley debuts sunday. we got a sneak peek. >> apps, software, software is silicon valley. >> it is dead-on. schmidt.s eric >> if you want to live here, you have to deliver. like steve. >> steve jobs? >> he didn't even write code. >> ending steve jobs is a making steve wozniak was

the engineer who created the apple. >> $200,000. >> $600,000 for six percent of your company. >> the whole thing you stand on. >> when we were sitting down with barack said we're making the bitter -- world a better place. we are constructing elegant pieces. >> we are changing the world by creating enterprise. i think there are plenty of companies right now that make that claim, and i think all of them have a little bit of credit in that happening. >> here it is. bitsoup. like alphabet soup, but ones and zeros. >> and makes you cringe.

>> who's going to watch episode two? >> i am all in. >> maybe your tastes lean toward political satire, season three also debuts this weekend. the least effectual posts in the most powerful office in the world. the vice president. what it is like playing a washington insider. >> i have a huge admiration for anyone who's stepping into that place. what i love about this is that it is satire to the extreme, and it takes you behind the scenes and shows you that these people have freaked out, they have insecurities, we see the ripping -- perfect sound bites and the fostering of about a half to lose it behind

the scenes. we show that, and there's a lot of commenting to be had there. hopefully it is not to this extreme. it does give them some humanity which i appreciate. >> finally, on the weekends tv watch list of the final four. the remaining teams in the ncaa men's and women's basketball tournament fighting for the title this weekend. the men, they're going to play tomorrow night at arlington, texas, where one of the greatest feats of march madness is going to be right under their feet. ♪ >> the floor in at&t stadium will be offered to the winning team. they will have first dibs on it. this one is unique of and is all a zipper floor. we start in the middle, and it goes from the center out. it is like a jigsaw puzzle, that is a good analogy.

if you're just a quarter of an inch off, you're going to have inches -- issues. the floor is incredibly sturdy. it is tightly knitted together with the seal and the systems that we use to pin it. it has no movement, it is totally stolid as a rock. the outstanding partisanship -- comes out and the finish of the floor. it has to be properly sanded. the hardest thing is the making sure that they are satisfied with what they pay for. let the games begin. may the best team win. >> it is going to be an awesome weekend. here's today's mystery meat. it is the brainchild of the

reverend of episcopal parish of saint john the evangelist in massachusetts. 32 saints, single elimination bracket. the winner gets a halo. here's the play-by-play. >> now entering week four a competition, it took an advantage. >> monday's match brings the first round. >> you will have to take out harry and james in the first round. >> john, i think that -- ♪

>> it is 56 minutes past the hour which means bloomberg television is on the markets. we saw wild swings. stocks rose after the job reports came at 192,000 added to the payroll judge shy of analyst

of 200 thousand. as we headed into the afternoon, we saw stock sale offer. off one point 25%. the nasdaq was down 2.6%. the biggest drop in two months. daybiggest losers of the where the momentum stocks which had been doing the best sense of the bull run. downe, yahoo!, facebook about 10%. treasuries are rallied. the most in three months. for more analysis on all of the market action, i want to bring in kevin coron. kevin, thank you for joining us. took it on that channel. they were trying to figure out why. why do you think? >> i cannot tell you. some of the higher priced companies have really been given back a bit of their luster

perhaps program training or technical level. i am really not sure. we got a decent numbers on the economy. the job somber was ok. apparently, winter weather did not carry over into march. and it lost its leg mid today. >> there was a lot of speculation seeing the big selloffs and the momentum stocks because their valuations are no longer justified. the highestding at level since 2010. do you think stocks are fairly valued at this level? >> you could make the argument it is a little overvalued. i do want to overplay that or make too much of it. their earnings underneath are substantial. if you look at multiples, take a big step from where we have come from. worth about $9 trillion five years ago when he

hit a low. it is worth close to $22 trillion. with had a humongous job and valuation. it provides support to market prices will stop a 30% -- prices. a 30% causes a rebalancing of boards folios. we thought maybe it would abide some time and it has been doing that and consolidating. >> a lot of investors would've spoken with have said we are seeing air coming out of some the pockets or bubbles so stop one of them in particular is it the biotech bubble we have seen. let me run you through the numbers. the nasdaq index up 79%, this past week off seven percent. dropped121 as stocks today. are there still bubbles out there in the market? >> yeah, sure. i would not speak specifically about a biotech. look atill say if you

valuations last year, a 30% rise on average in the stock market. higher volatility groups and stocks are going to leak much more than that -- leap much more the that and prices cannot grow to the skies. there's a valuation that has to be considered. given the fact that is seen just simmered down this year, we are not going after the fast rate we saw last year. it is opportunity. >> kevin caron. that does it for us. ♪