♪ >> welcome to "lunch money." where we tie together news. i am adam johnson. here is what we have on the menu today. in companies, blackrock shakes things up. what does that mean for ceo larry frank? guess who fires the latest shot in the battle for content. we will tell you. the republican party plays catch-up in the race for data. we are going for a boatride. we take you a board mastercraft. captain america is only the latest studio superhero.

all right, a lot from the weekend. hangover.ith a friday >> at the close of trading -- we have been talking about the nasdaq getting hit so badly today, it looks like it is ending the day on 2.55%. >> the one striking down the market -- the ones that were driving it out. >> u.s. tech stocks have a rough end of the week. they have a few drinks and are the first ones into work on monday, and it is with a hangover. >> the tech selloff in the u.s. on friday will circle the globe. it has spread to asia and europe. china's largest internet company down almost 5% and hong kong.

lucent, sliding. >> one-day's lost is not a trend make. mark mobias. a $50 billion fund. one company set to go public in the u.s. that goes by the name of alibaba -- >> the fact that they would not go into hong kong because of that control issue -- that concerns me a lot. but i would buy other internet stocks in china. for example, we do have tencent. in our portfolios. it is a big field. china is going to be more tech and internet oriented. internet shopping is a global phenomenon now, and it is very very fast, so you have to pay attention.

>> the prevailing wisdom, even with fairly benign job support on friday -- who knows why something happens? >> it is a guess what the market does on any given day. last week, when we surged to new highs, less than 10% of the names in the index. made 52-week highs. >> fewer. that is even though the index reached its own all-time high. that is what she is talking about. what does this actually mean for earnings season, which begins this week? >> we touched these new highs. we could not make it on bread. -- breadths. we have to see earnings follow-through. it does put pressure on earnings season. i think the big thing to watch is not what companies did in the first quarter. we know the first quarter was pretty difficult, given the

weather, and that isn't easy excuse. we need to look for some kind of forward momentum. we have to get something behind these numbers. >> there are also for ipos on cap. allied, rescued by the u.s. government, using an ipo to help the treasury department the best part of its stake. at the high-end, market value of $13.5 billion. we have la quinta holdings. the hotel chain is seeking to raise 71 20 million dollars in its ipo. the company is backed by blackstone group. must we, the big ipo was grubhub, the service that allows people to order a delivery online. the ceo spoke with the "market

makers" team last friday. >> the reason we did the ipo was to gain exposure on the company. this is a massive marketplace. $70 billion spent annually on pickup and delivery in the u.s. alone, and only three percent is based online in any way. >> why would you want to price your deal at $835 price at a time when investors cannot seem to make 10% returns? you made 50% in 20 minutes. >> focusing on the innovation and the powerful two-sided network, we are showing how strong this industry is. we are accelerating through innovation very very rapidly. the ipo process was not necessarily about raising the cash. it is dry powder, in the bank.

it is about exposure and showing the world what a powerful and simple business model we have built. >> you are right. grubhub is the leader in what is thus far a big industry. what are the barriers to entry? who might compete with these guys? you might not find another company starting a grubhub, but there are companies that deliver other things in other ways and could in theory compete with you. how much competition do you believe there is -- if not today, two years from now? >> it is exactly like you said. a massive, dynamic industry. a lot of innovation. we are benefiting from an extremely powerful two-sided network. we have made it incredibly easy for diners to find their favorite local restaurants with their smart phone right now. download the app and see. i bet your favorite restaurants are on our platform already.

we have nearly 30,000 restaurants across the country. when you have diners using grubhub on a weekly, if not nightly, basis, that is where the competitive barriers come into play. >> grubhub is not the only company facing new competition. new armies in the war for content. coming up in new media. two countries cementing a merger, next. and look at this. it is a six mile high plume of ash from a volcano in ecuador. the eruption lasted just five minutes. it came from a volcano just south of the nation's capital, one of five active in the country. ♪

>> mergers and shakeups.

mergers first. cement makers announced a merger to create the world's largest cement company. holcim and lafarge ranked near the leaders in related products like gravel and sand. >> behind this merger, there is the idea to answer to the question created by all the challenges of the world. and to be the most advanced player in our business, in our industry, and the construction chain. >> there is an enormous chance to reinforce competition to european markets, because it is very possible that spinoffs and disposals -- there will be a new competitor arising in europe, which is exactly what the regulatory authorities are aiming at. >> on to shakeups, and one happening at the helm of the largest money manager, blackrock, which is reorganizing, resulting in new roles for at least 10 executives.

the operating officer was named copresident, and goldstein took his place. as for larry fink, he is staying put. >> i spent a lot of time with larry on the road, traveling the world. he is not going anywhere. >> you have heard it from blackrock vice chairman larry fink. he is here to stay. ubs and blackrock oversee a combined $6.5 trillion in assets. what are their main concerns with the markets right now? >> the short-termism creeping into the whole world, the media, the corporate world, perhaps policy. we have been trying to engage the dialogue to try to focus on the much longer-term investment horizon, and not just share buybacks and paying dividends.

actually do something productive with your earnings. productive for the economy and for the shareholders in a long-term sense. that is the emphasis we have taken the last couple of years. >> is this a concern of yours also? >> always a concern. are you a trader or an investor? we represent institutions that are investors. we are trying to think over years, over a business cycle at least. that probably drives how we look at things. >> christine michael also asks about tension with russia, and the solution to avoid negative economic repercussions. >> this is a difficult, complex problem that cannot be summarized in 30 seconds. both sides have, to some extent, legitimate grievances to how things were handled in the run-up to the crisis.

how do we move forward? we have the given state of things. the key has to be to stabilize the ukraine, economically and politically, helping protect the russian minorities there. i think europe has a big role to play, together with the fund in the u.s. in crimea -- that seems to be the basic framework for a sustainable solution or sustainable problem-solving approach, moving forward. >> the eu has so many economic ties with russia that it makes it difficult to play policeman or talk about real sanctions. >> there are a couple ways to think about this, none of which may be right. it is bad for russia, the eu,

and the united states. there were escalations around the enron sanctions. it is hard to know what putin may or may not do, in terms of moving toward more of a eurasian approach toward his influence. i would say it is worse for russia than it is for the e u, if things escalate. russia is already in a recession, less than one percent growth this year. we would not 11% off the economy if the eu stopped buying energy from russia. that would be terrible for russia. >> the stock market fell off three weeks ago, what investors are pretty happy with the way things are being handled. >> short-term, a lot of uncertainty. longer-term, the valuations are pretty compelling. you can get a pretty good dividend yell -- dividend yield. even if you think rational forces will prevail, it is not necessarily a rational thing. >> there is a sense this problem can be managed, if we all focus on making sure the ukraine does

not become a failed state. the more we do to help the ukraine stabilize, politically and economically, the more we have two avoid the scenarios that would be against everyone's interest -- the ukraine, russia, europe, and the united states. investors kind of see that and realize there is a path. it is a complicated one, but it has to begin by making sure we help as much as we care on the ukraine manage its situation, in a way that is acceptable for the important russian population in the eastern part of the country. >> from business to politics. republicans are trying to bring their a game into managing digital content. we show you how your new favorite show might come from microsoft. that is right. the company that makes windows software. that is next in media. in philly, a 29 story game of

tetris played on the side of a skyscraper. part of the tech week celebration. kind of cool. ♪

>> tech companies are ratcheting up the competition for content. yahoo! plans to create the programming you would expect from showtime and netflix. four separate series would cost at least 700,000 dollars to produce. microsoft wants in on the action as well. its xbox entertainment studio unit has told bloomberg it is

expanded to six original tv shows, including a halo series from spielberg. here is a peek inside l.a.-based xbox entertainment studios. >> inside this low-key santa monica office building, microsoft is putting a tv future, and it is tied to this. xbox entertainment studios is a unit of xbox created to make original tv shows. >> this is a start up the help of microsoft. >> xbox studios is developing all sorts of shows. the steven spielberg-produced halo series, a robot thriller called "humans," a reality show on street soccer ahead of the world cup. to watch, you will fire up your xbox. if you are part of xbox live, you may be able to stream originals the same way you would watch netflix or play an

interactive video game. microsoft may strike partnership deals to distribute shows outside of xbox. shows will also be interactive. it is different than lying on your couch watching cable. microsoft is doing this to keep xbox loyalists happy. it is estimated each xbox sold brings extra dollars to purchases from microsoft, a number that would climb if tv is a success. there is a goal of making xbox one the anchor of the home entertainment network, connected to tablets and phones. >> this is very tacky. >> it is totally does this is very -- >> this is very techy. >> we commemorate all of our successes by ringing the bell. >> we asked whether microsoft would produce a -- all the new content on its own or through partnerships.

here is the president of xbox entertainment once again. >> we have an arrangement with channel 4 in the u.k., producing a series together. we can coproduce or fully produce. we can bring in talent. we are very flexible. >> showtime as an example. typically, you think 30 minutes or an hour. even in new platforms like netflix, you are still thinking in those terms. what are you guys thinking about, in terms of how long a show should be? >> if someone comes and says, i have a great animated series, i could go for 10 minutes. that is all it needs to be. >> one of the shows you are doing is "humans," and it is a thriller. you are covering a live event,

bonnaroo. what is the thought process behind some of the shows you want to be doing? >> we obviously start with the focus of who is on xbox. who is using our service? there are also gamers at this moment of time. we are looking at why they are on our platform, and how we can integrate the technology to make their tv experience richer and more engaging. when you talk about bonaroo, a lot of people would like to attend, or do not want to attend, but want to listen to the music and avoid going to tennessee. you can actually have a virtual experience in your own living room, being able to choose the stage you want to watch, having real-time interactions with the talent using skype. >> the many flagship games that

have come to represent xbox -- all fair game in terms of becoming television shows? there are racing games, halo. if we were not attached to microsoft, everyone would yearn to have them. this is an amazing platform to work for. >> they fell 25% in 2013. from the small screen to the big screen, captain america has not lost his touch. meanwhile, get your heart

-- hard hat. wake board and performance powerboats. basically fun stuff for the water. ♪

♪ this is "lunch money" on bloomberg television. i 'm adam johnson. oscar pistorius took the stand in his murder trial. he is accused of murdering his girlfriend, reeva steenkamp. he broke down on the stand and apologized to steenkamp's family. apologize.like to

there has not been a moment since this tragedy happened that i have not thought about your family. there are people i pray for. i cannot imagine the pain and the sorrow i have caused to your family. said he thought steenkamp was an intruder when he shot her in their home on valentine's day last year. 100 people were arrested when a massive spring break party turned violent. 50,000 party goers flocked to the event there uc santa barbara, but violence erupted and some of the crowd ripped up signs and threw rocks and bricks at police. actor mickey rooney has died. when he made his movie debut at age six, he quickly became one of the biggest names in hollywood. he went on to appear in more than 200 films over eight decades. he also launched a career off-broadway in his late 50's. he had parts in night at the

museum and the muppets. mickey rooney was 93. in politics, elections around the world. first, we are going to afghanistan, or more than 7 million voters cast ballots to choose their successor to hamid karzai. turnout was double the previous election and there were no major disruptions from the taliban militants, who warned people not to vote. results will be announced april 24. one top visitors a contender expects a runoff. turning to india, more than 800 million voters are eligible to cast ballots, roughly the populations of the u.s. and eu combined. they are going to be voting on over 500 candidates. it will be the worlds largest democratic election ever. arguably the most complex. indian stocks and currency have been rallying on the prospects of electing a party to revive

asia's third-biggest economy. in the u.s., midterm elections are in full swing. phil manning lee is going to help make sense of it over the coming months with his new series, power brokers. he will introduce us to key players, talking about some of the key issues. today, rnc headquarters and the new digital effort. >> 2012 election headlines told the story. a tech and data victory, and a failure by republicans. republican officials and donors wasted little time amending the resources and the tech to match democrats and avoid a repeat of the 2014 midterms. chuck defeo. >> we have the team that work with our data, who aggregate it and do the quality control. we also have scientists, people

building models of data. >> inside the national headquarters, chuck is overseeing a new model for efforts to streamline massive amounts of voter data. he is working with $17 million, more than 40 full-time staff, and a recruiting effort that reached the top engineering schools in the company, as well as facebook and linkedin. >> we are working to make sure our teams have the data and analytics they need. >> there is a platform to streamline the reams of voter information coming from e-mail and consumer data. they plan to utilize constantly evolving information, sent to the field to target voters and donors. the new chief data officer points to republican david jolly 's recent victory in florida. >> taking what we did in florida and expanding upon it on a

national scale. >> the victory serves as a data test. operatives across the party had access to the real-time data collected or purchased from vendors, including from harm -- home and car purchases. >> we can do it at scale, at a low cost. >> ask the rnc thinks they can match the obama data systems and improve on them. >> numbers wise, what have you done that has been successful? >> does this get us more information that is helping us put people on a path to vote for our candidates? they are more likely to volunteer for our campaign and eventually become a donor. >> still, republicans are believed not to have to take on

obama' head on. >> you had a little bit of a drain. >> phil manning, bloomberg news, washington. >> democrats have their own operation. they say they are using digital information from the obama from america campaign to improve upcoming congressional campaigns. get your boat shoes. time to show you how master craft perfected watercraft. right here in the usa. selling boats. these books cost many millions of dollars. ♪

>> it is almost boating season. the largest producer of ski, wake board, and performance powerboats, mastercraft cells -- sells boats in more than 40

countries, but makes them in just one place -- tennessee. we take you inside mastercraft to show you why this global company manufactures everything right here in america. >> we make very high-end water sports enthusiast toys. we make a wide variety of boats for wake surfing and wake boarding. mastercraft chooses to produce here in tennessee because of such great availability of labor. it is a very competitive wage environment for us. this is a low-cost place to manufacture. the large majority of our dealers are in the east coast. there has been a push to manufacture abroad. we think to control quality is critical for us to manufacture and supply locally. >> you want to build right?

you have to build it in america. >> there is easy access to water. >> the tennessee river is only about 10 miles from here. >> boats are built from the outside, am. they are actually built out of a mold. the colors on the outside, they go in the mold first. the boat is really built in two parts. when the work is completed, we literally pick the deck up and place the deck down on the whole. we screw and pin it together. >> people would be surprised how labor-intensive the votes are. it takes time. robotsot have any

here. >> there are no better skills than the people here. >> it starts to look like the boat you are familiar with. not only is the performance of the boat important for our customers, but what happens behind the boat is equally important. >> that is the fun part of the job. we water test every part of the boat we manufacture. >> boating is really a lifestyle. we get to do what we generally love every single day. it is not work. >> we are going to step it up a notch. freddie, which sells boats for many millions of dollars -- we sat down with the ceo at the miami boat show. and yes, got to ride on a boat. >> we are one of the top one or two manufacturers in the world. the largest boat that we build is 80 meters. we have a space here, all

undercover. we try to create an automotive retail type of environment in the marine industry. we have a space we use as a lounge space. they can relax, look at products. you have to create a wow effect. at any given time, we have upwards of $30 million worth of inventory. we bought the distribution in the americas. we sell directly. you are buying from the factory. i spend a tremendous amount of my time in front of clients. i hear what they like and do not like. because i work for a manufacturer, we have a system to feed that information back to the factory. when we discussed the boat, narrow it down, identify, we take them out. in the american market, it is

impulsive. it is surprising how quickly people will make a decision. some people are looking for instant gratification. i see something they like, and they will buy it. >> also bringing in the big bucks -- captain america. we are talking about the marvel heroes sequel. we will also hear from stanley from stan lee. a french daredevil wowed a crowd in paris with a tightrope walk. a 500 foot walk in half an hour, 82 feet above the water. at one point, joslin stops to put on a blindfold. take a look at this as we go to break. ♪

♪ "lunch money" on bloomberg, streaming live on bloomberg, your tablet, and your smart phone. we have your weekend box office winners. "captain america: winter soldier " ranked in 96.2 million on its first domestic weekend, for $300 million globally.

"noah" dropped to second place. the biblical epic has our and $72 million domestically. "divergent," just $30 million over the course of the past couple of days. the movie has earned 136 million dollars worldwide since debuting in march. marvel, the magic behind captain america, and it has plenty of other sequels coming up. "amazing spiderman" and "xmen" -- in early 2015, you have the avengers. the avengers are going to get sequel fatigue. morgan stanley says superheroes are like a james bond franchise. >> i do not know how long that has been going on. it is still a big event when a new james bond movie comes out. i think it will be the same thing with marvel superheroes. >> spiderman, released by sony,

and x-men, released by fox, compared to the many marvel films being distributed by disney now. the latest being the new captain america movie. some numbers suggest the marvel films are under disney are bringing in even more box office ox-- office bucks than some of the others. >> if you have a plethora of characters, if you have eight or 10 characters, some are going to be a little more popular than others. but the amazing thing about these movies -- every one of them seems to do well. some may be better blockbusters than others, but there seems to be at the moment am insatiable demand for these types of movies. >> a lot of people are already pointing to the next avengers, potentially because of the

global box office, the nature of where these films can go -- possibly being the biggest film of all time. when that surprise you? >> not at all. >> warner bros. obviously has the d.c. family of characters. it does not seem like they have generated as much at the box office as recent years. >> i wish my friend bob kane were still with us. he created batman. he always used to tease me about the fact that that man was a big deal on television and in movies, and we at marvel had done nothing. i wish i could return that teasing. creating someone the viewer cares about -- maybe at marvel we put a little more effort into defining the characteristics and the nature of our heroes.

maybe a little more than on the other side of the aisle. >> the release date for captain america three was announced today -- may 6, 2016. that is the same release date for warner bros.'s new superman and batman movie. time for today's mystery meat. we have a pillow fight. this is in vienna, austria. ♪

were, and that means bloomberg television is on the markets. i am olivia sterns. stocks are lower as we head into monday afternoon. the nasdaq has seen the heaviest

selling. this loss to on his new week. also, a lot of biotech and technology stocks. a closer look at this tech selloff. >> how the mighty are falling. and you do not want to buy them. time for a little insight in action. a look at the no momentum stocks. just over the past month, netflix, twitter, facebook, tesla, and wynn resorts -- terrible returns. hard or worse, the technical strategist at stern agee, says we will see more of this. once in a rare while, trading action on a single day is of above average importance. friday was such a day, containing seeds of future

developments. it is what he calls a key reversal. it is a breakdown of momentum. you are seeing more selling on more volume. that is the problem. selling does not last forever. we look at the s&p 500 over the last couple of years. we noticed there were 10 separate selloffs over the past 10 years, each lasting anywhere from a couple of days to a couple of weeks. the average pullback was 4.3%. the highest selloff was about nine percent. the smallest selloff was about 1.8%. right now, we are down about 1.7%. this effectively argues, just let this keep going. it will probably go down another couple of percent. this is not a disaster. we've seen this before. if you just want to go to cash and take some money, look at where people are playing

defense. over the past several months, there have been making money. utilities up 10%. that is all about income. even the beleaguered 10 year, up 1.9%. we are selling off. we will likely see more selling off, and here are some of the places where you can hide. >> adam johnson with the gold up, but falling today. stimulusay cut the program. pulling money out, treasuries rallying for a second day. trading down.

that does it for on the markets. pim m foxx is up next. ♪