>> welcome to "lunch money" where we tied together the best stories, interviews, and videos in business news. i'm matt miller in for adam johnson. let's take a look at the menu. we have an ip frenzy. la quinta hits the market. allied is on deck for my and more ahead next week. and then the world according to biz stone. the leader talks about life in silicon valley. comcast and time warner cable defend their planned merger in washington. no one really likes the idea. around the world, pussy riot tells it side of the story from

prison to politics. and in innovation, robots that think for themselves and behave like termites. get psyched for that. first off, kicking it off with what everyone is talking about. gm has company in the recall department. >> it is one of the biggest recalls in history, toyota recalling more than 6 million cars as of 5 million defects. the company does not actually know of any injuries or deaths linked to them, but the cars being recalled our top sellers like the corolla, the camera, and the rav4. to avoidmpany trying what gm is going through right now. and getting a recall out in the open. itsta also wants to avoid painful experience of 2010 when it recalled 10 million vehicles because of unintended acceleration. president ofe toyota spent a lot of time in washington. regulators had punished the company for covering up information and being too slow in making the 2010 recall. toyota has fled ash has pledged

has pledged to improve the process. he has instituted a three-year freeze on car plans to focus on quality and efficiency. it appears rye grass has been slow and as just last month -- it appears progress has been slow as just last month, toyota pledged $10 billion to address safety defects. rather than promptly disclosing and correcting safety issues about which they were aware, toyota made misleading public statements to consumers and gave inaccurate fax to members of congress. >> in a misguided and ill management,is toyota made the decision to mislead the public to protect it brand. rather than come clean, the company covered up and misled again and again and again. >> put simply, toyota's conduct was shameful. that seems like a lot of is going around in the auto

industry. is donemary barra with her hearings in washington, but regulators are not finished. finedl motors is being $7,000 a day until it answers all the questions it has to on those bad ignitions. gm was spotted to more than one third of the requests made by a with a deadline of april. thatoo bad for a company made about 426 million dollars a day in 2013. i don't think they are sweating it. gm and toyota have not been very popular on capitol hill. secretary of state john kerry is feeling a cool reception as well. kerry, i have watched with great interest some of your comments and may i say, i think you are about to hit the trifecta. geneva two was a total collapse, as i predict to you it would be.

israeli-palestinian talks are, even though you may drag them out for a wild, finished. and even though we gave the enrich, the right to which is unbelievable, those talks will collapse, too. you can talk about molly --mali and other places in the world, but on the major issues, this administration is feeling very badly. -- failing very badly. >> wow, senator john mccain is just getting warmed up. >> on the issue of ukraine, my hero, teddy roosevelt, used to say, talk softly but carry a big stick. what you're doing is talking strongly and carrying a small stick, in fact, a twig. what has been done so far as a result of the russian dismemberment of ukraine in violation of a treaty? some individual sanctions, some the -- diplomatic sanctions, suspension but not removal from

the g-8, and now more threats to come. with ukraine being destabilized, part of the dismembered, and we won't give weapons.nsive it is just beyond logic. >> senator mccain. at's give the secretary chance to respond. >> let me begin with the place that you began with your premature judgment about the failure of everything. friend, i said will not succeed, maybe for a year or two. if serious is ever going to be resolved, it is going to betray political process. process,political geneva two, is now in place, though the moment is not right because we still have to change calculation. secondly, israel and palestine. it is interesting that you declare it dead, but the israelis and palestinians do

not. they want to continue to negotiate. >> we will see, won't we, mr. secretary echo >> i bigger part in? -- i beg your pardon? >> we will see. >> yes, we will see. >> it has stopped. recognize reality. >> we will see as he go down the road. there are serious problems and it is a tough issue, but your friend teddy roosevelt also said that the credit along to the people in the arena trying to get things done. we are trying to do things done. sure, we may fail. do you want to dump it on me? i may fail. i don't care. it is worth doing. and finally, on the subject of iran, we are talking. the option is, you can go to war. a lot of people are ready to drop bombs all the time. we can do that. we have the ability. but this president and the secretary of state believe that the united states of america has a responsibility first to exhaust every diplomatic possibility to find out whether

we can prove what the iranians say, that their program is peaceful. >> well said. although, it probably isn't. to have to render the answer the senators question about ukraine, john kerry. is, we are currently working with ukraine for determined across the entire security sector. and based on those requirements, we will review options with the congress and find out whether or not we are in a position to provide assistance. >> your view of what the ukrainians need is vastly different from what the ukrainians think they need, which is the sovereign right to try to defend themselves, which is something we have done historically, helping people who are struggling against overwhelming odds. >> i just said to you we are evaluating with them exactly what their needs are and we will come back here and ask you -- >> they have said what their needs are a long time ago and you and i can sit down and 15

minutes knowing what their needs are. >> i think you both made your point. >> the greatest single need right now is to get the our economy moving and to be economically strong, because they won't survive otherwise. it is not just the battle of the john's there. capitol hill pretty combative overall yesterday. check this out. >> recognize that content is not a big deal to our attorney general, but it is important that we have proper oversight. >> you don't want to go there, ok? >> i don't want to go there about the content? >> no. you should not assume that is not a big deal to me. i think that was inappropriate and unjust. but never think that was not a big deal to me. don't ever think that. holder was testifying before the house judiciary committee at an oversight hearing at the u.s. department of justice. representative goal merge was --

revisiting a terrorism case. >> this was all about the gun lobby and a desire to have -- >> we have been trying to get to the bottom of fast and furious where people died, where at least a couple hundred mexicans died and we cannot get the information to get to the bottom of that. i don't need lectures from you about content. >> and i don't need lectures from you either. >> it has been difficult to deal with asking questions. as a former judge, i have never asked questions of someone who has been held in contempt. >> the time of the gemini has expired. the chair -- of the gentleman has expired. >> that last part was the best if you heard it. "good luck with the asparagus."

that was a snarky comment from the attorney general to the representative. >> [indiscernible] aspersions on my asparagus. mineur guess is as good as as to what he was going for there, but it is pretty priceless. here is a man he will not be battling anymore, james hellwig. the ultimate as warrior died yesterday at age 54. he was one of the world's most charismatic and popular professional wrestlers. here he is just sunday after being inducted into the world wrestling entertainment hall of fame. the ultimate warrior will run forever. [applause] ♪

>> this is "lunch money" on bloomberg television. we are streaming live on bloomberg.com, which makes us at a mike lee available on your tablet and smartphone. -- automatically available on your tablet and smartphone. i'm matt miller in for adam johnson. companies left and right are going public, or announcing plans to take their cut -- their companies public. today, it is lacking cap. inta. it is la qu >> it opened below its listing price. as you mentioned, priced at the low end of its market range, $17 a share, raising $650 million overall in its initial share sale. blackstone, the private equity firm, the company that backed la 60% of thel holds common shares after this listing. it is the third hotel chain that blackstone has taken public in the past year.

before that, it was extended stay, and of course, hilton, which was the biggest hotel ipo ever. both of those companies have seen their share prices rise since their initial public offering. >> it has already been a big year for ipos. crush for keying digital, and grubhub as well. but they have had mixed results. >> the biggest ipo in the u.s. this year raising about $2.1 million. since theyrmance began trading. if you look at the bloomberg ipo index year to date, it tracks companies that have had public offerings in the and past 12 months, not just your today. we have seen a decline for this year, whereas we had seen an increase over the past year. >> on deck for an ipo is allied financial. the auto lender rescued by the u.s. government during the 2008 financial crisis hits the stock

market tomorrow. treasuryng the department to divest its stake in the company. it is hoping to raise $13.5 billion, according to bloomberg. >> it will give its money raised to the taxpayers him a which is good for us. but also come it has been under strict restrictions from the government since the treasury is its biggest holding. willhat it is selling, it be about a 17% stake, assuming the over -- the underwriters do not take their option. they will be able to have riskier activities in terms of making subprime loans. some analysts are expecting that will help their bottom line. >> is this ipo frenzy sustainable? we asked bank of america's head of tech equity capital in an exclusive interview.

>> if you look at the headlines that come out, they tend to focus on the activity level as comparable to 2000. the natural question every one has is how sustainable it is. and if you look at health care and technology, people look and say, that cannot be sustainable. but there are some encouraging signs. the market is differentiating between companies. there are always stories that come out when a company with minimal earnings or revenue get a huge multiple. however, the market has been separating between the types of companies and quality of revenue. that is something that would suggest that it is somewhat sustainable. deals --tos two deals in acquisitions and mergers, comcast is taking a bite out of time warner cable. and coming up next, we will hear from this stone about what he has learned in silicon valley. areartie at -- or marty

jet takes off on its maiden voyage after he was delayed last month because of a software issue. here's a look at the jet designed for the business set. ♪

>> twitter cofounder is stone has a new memoir documenting his rise in silicon valley called "things a little bird told me: he confessions of a creative mind." he sat down with emily chang to talk about what he hopes people take away from the book.

>> my view of the world, i have described it as hallucinogenic leak optimistic, very aspirational. i would like people to take away some of the hard learned lessons that i share. if it is only one thing they take away, hopefully some of those chapters on creativity and the idea that everyone is creative, not just artists. everyone is creative and creativity is a readable resource. i would also like people to -- is a renewable resource. i would also like people to take away a fresh perspective on eating back. ony people do it wrong -- giving back. many people do it wrong and feel like they should do it when they are comfortable and older and have money. but if you start earlier to my just volunteering, the impact over your lifetime is so much greater. i talk about the compound interest of all truism in this

book. altruism in this book. >> speaking of money, you don't sugarcoat how broke you were in the early days, like living in your moms's basement, which are girlfriend, in an apartment where you could not buy -- with your girlfriend, in an apartment where you could buy a bed. what drove you then? and what do you do now that you have money? always thinking of my future self, like future biz will be smarter and figure things out, so i will not worry about it right now. what drove me with the work i was doing was engagement. i always found something that i was really excited about doing. when i started my first sign -- first design studio and that led to my first foray into being a tech entrepreneur with the early blog network,ing

i believed in the democratization of information. i was excited to work as a blogger. money didn't matter, because it was more of a mission. the mission drove me, is the short answer. >> does the mission still drive you? >> yeah, for sure. >> stone talked about the future of twitter and why he already -- why he, already rich beyond his wildest dreams, does not pay much attention to the stock price. yout's like when they tell that you're trying to lose weight, don't look at the scale every day. it will go up and down. back ando take it way think long-term. will this be a company of enduring value? all kinds of different people in all kinds of different industries are getting value out of twitter. i know it is going to be a

valuable company. people are getting value out of it. organizations are getting value. television networks are getting value out of it. regular, everyday people are getting value. when there is value being created, you have something there. >> maybe you are not watching the stock price every day. >> no. >> maybe some employees are paying closer attention to it. maybe you worry about the eight employees, insider selling off. >> the honest answer is i don't worry about that at all. face in thefeet deep executive bench we built at twitter. an incredibly talented team that is in place there. this is one of the reasons i felt like it was appropriate and i was comfortable leaving day today, because the right people are in the right spots. to day, because the

right people are in the right spot. >> emily also asked about the animosity between other cofounders. there was a birthday party and i forced them both to come. the thing is, they are so similar. quiet,e both soft-spoken, speak when spoken to types. and without me in the middle, it would just be like, two guys. >> who will play you guys in the tv show? [laughter] >> i have no idea. i do not even know if that'll be a thing. it could be a cartoon. >> a cartoon about twitter sounders played by a dog. something -- well, i would never watch that. all right, it is not a cartoon og, but ms. stone -- biz stone. we will show you some very interesting animals, like a kangaroo, coming up.

>> it is 26 minutes past the hour and that means bloomer tv is on the market. i'm julie hyman. let's take a look at what is going on with stocks today. we do have a rise in stocks today. releasinge to alcoa minutes this afternoon. ♪

>> available on your iphone, we are streaming live at bloomberg.com. we are all over the place. i'm matt miller in for adam johnson. today's video is the picture that is the story. investigators believe they are closing in on the malaysia airlines jet. picked upws have signals consistent with those emitted from the plane's black box flight recorder. australian officials heading up the search efforts and said they are optimistic of finding the jets in the "not-too-distant future." clash betweena

shopowners and a group of people trying to evict them turned deadly. two of the store owners were killed when the police intervened. the group was trying to force the merchant out, claiming to own the land of the shopping center was built on. acrosslege championships the board. connecticut women beat notre dame to win the ncaa title. record national championship for the ninth time in a row for the women huskies. he finished the season with a perfect 40-0 record. this comes right after the men's team knocked off kentucky to grab that championship. a big, big deal for the yukon ladies. uconn ladies. comcast is defending its move to acquire time warner cable. this is not a challenging transaction from an antitrust

perspective. our companies serve separate geographic areas. we do not compete for customers anywhere. the transaction will not lead to any reduction in competition or consumer choice in any market. american consumers will enjoy the same choice among broadband providers before and after this transaction. there are no competition issues in that market either. >> no accommodation at all, that is the company line from comcast. the executive vice president reiterated that customers would not be heard. >> there is nothing in this transaction that would cause anyone's cable bill to go up. i have a nasty little habit of telling the truth, and when i was asked whether people's cave -- cable bills was going to go down i said i could not make that commitment. but between the synergies in this deal and whatever marginal additional leverage we might have in programming and quitman supply purchasing, whatever economic benefits are generated -- equipment supply purchasing,

whatever economic benefits are generated will ultimately go to the consumers. >> there is going to be, obviously, some concern. >> i am against this deal. i believe it does not meet either test. resultve this deal will in fewer choices, higher prices, and even worse service for my constituents. >> companies have to enter special agreements to ensure adequate quality of video streaming service. i worry about the potential impacts on other types of services. one that i can think of that i have worked on for years is telemedicine. especially tying together medical centers in rural areas. it is an annoyance for consumers when they cannot stream the most recent season of "house of cards" due to the interconnection dispute. but where it is really serious

and becomes life or death for is for those who cannot reach health care for the same reason. >> just a few seats down, the cable executives were not feeling it either. >> with an additional 10 million subscribers, comcast will be in the driver seat. you are either on their system serving more than 30 million customers, or you're not. will that impact the price? you've got to believe it will. went from anss unknown cable service to on television. here we are going to an unknown punk rock band that quickly became famous as an international spokesman for human rights in russia. how pussy riot took on vladimir putin is coming up. and later, how the first flying up.is coming we will tell you about it in innovation.

and archie andrews, the publisher for archie comics says the main character will be killed off in the july issue. the following issue will feature archie's friends remembering his life. ♪

>> this is "lunch money" on bloomberg television, streaming live on bloomberg.com, your tablet, and smart phone. i'm matt miller in for adam johnson. puty, the punk band that a baklava phase two russian oppression, pussy riot gained international attention two years ago when they were in prison for hooliganism. they were arrested for filming a music video in a church. here is the history of pussy riot in 50 seconds.

>> february 12, 2012, five of the seven-member band perform an anti-putin song at the cathedral of christ the savior. in march, three of the women are andsted for "hooliganism" "religious hatred" and sentenced to prison. one was released, but the other two were held. on december 21, they were released on amnesty. in february, during the limit games, several members were seen singing in front of the olympic rings. a charge arrested on of theft, but released several hours later. shortly after, several members are whipped by caustics during a downtown sochi -- at a downtown sochi restaurant during a street performance. >> addressing the lack of religious freedom in their home country of russia -- >> it is difficult to imagine

how in the 21st century anyone can be judged by 20th-century laws. court, we heard questions like, do you believe in god, or whether god is as real as the moscow subway. i believe that theological discussions should not be happening in court. these discussions -- the fact that these discussions did happen only shows the absurdity order,and -- putin's and it was not a true court, but just another propaganda machine. >> the propaganda machine put them away for 21 months. here is what their experience was like in the russian prison system. >> we don't have an ability to protest in female camps. in the men's camps, they can

notify the administration of any violations. in the female camp, the women are completely subjugated. they must work 16 hours a day. they refused meals. they are denied personal hygiene. they can be put outside and be kept outside 10, 12 hours, sometimes even days. and in the isolation cameras, it's very cold. it'se isolation camps, very cold. and women get sick because they have to spend so much time there. and many of them already have serious diseases, such as aids, and they are not receiving harper treatment. i wrote about this. treatment. i wrote about this. and i felt a lot of pressure on the administration. they did not like this truth to be told. they tried to suppress any kind of truth from coming out. and this truth does not leave as soon asbecause

anyone tries to do this, he or she is labeled as an enemy and all of the other prisoners are turned against them. >> one thing everyone wants to know is the story behind their interesting band name. >> we wanted to kind of feel more freed from maybe some of the limitations that words can put on our shame. not just on -- on us, but on government officials now pronouncing this -- these words with great pleasure. >> so you knew. >> seriously, yes. right guilt is a very strong influence on us. it is just a pair -- paraphrasing of this movement. we wanted to do something like that in russia, and at some point we realized that something like that is very unlikely. so we decided to create it with our own hands, and we did it. >> you can watch the full

interview with pussy riot members on charlie rose tonight at 8:00 p.m. and :00 p.m. eastern, only on bloomberg television. theng up, get ready for rise of the robots. the animal inspired machines being created around the world, from termite bots to kangaroo bots. and we are not stopping there. we will also introduce you to the world's first legal flying car. and prince george and his royal parents joined other families at a get-together in new zealand. it was part of a royal visit to the country. format only tease -- formalities were quickly cast aside and prince george was doing what other others do. whatever that is. ♪

>> this is "lunch money" on bloomberg television, streaming live on bloomberg.com, and your tablet and smartphone come as you must know by now. i'm matt miller in for adam johnson. in innovation, going around the world, starting right here in the usa. scientists at harvard university are developing a robot inspired by nature's best builder, the termite. and best of all, it does not need humans to tell it what to do. take a look. ♪

>> meanwhile, over in germany, the world's biggest industrial fair is using a very different kind of animal for inspiration, one that hops. take a look. ♪ >> you see here the bionic kangaroo, which is inspired by the real natural role model.

i am an industrial designer full stop we actually produce and develop robots for automation. the kangaroo, for us, is a variant -- is a very interesting an role model because of the energy. it is able to store energy in attendance, and retake it for the next jump. also, it is able to get faster and faster without using more energy. veryng is something complicated and needs a lot of control. interface, which is a device that can be mounted on the arm, and using any empty symbol -- a signal, -- and using able toignal, we are

make it move. andry to learn from nature bring that to our product. but scientists are working on an roboticly important termite and kangaroos. but what about flying cars? bloomberg got a preview of the world's first legal, road and airborne auto. >> the basic breakthrough of this vehicle is the way it drives. , and that is why we can make it stable on the road. ceo of my company and we developed the first flying car in the world. flying is cumbersome.

you take over the place where you don't want to leave, and you and at a place for you don't want to be. the vehicle was built within existing regulations. road in one ok for the europe, and then it can be sold in any european country. for driving, you need a license for the car, and for flying, you need a recreational pilot license. the starting price will be 300,000 euros for the general version. it is a sort of -- and there is a limited collector's edition for half a million. building them for policing organizations, aid organizations command security. -- aid organizations, and security. >> that looks so much cooler than any robot. but we have more robots for you. these are courtesy of france.

they communicate with each other via wi-fi and without any help from humans. >> around the clock, around the world. bloomberg keeps you connected. ♪

>> coming up on 56 past the hour , which means bloomberg news is on the market. i'm julie hyman. let's take a look at where stocks stand about halfway through the session. we do have gained across the board, but let's look at a couple of individual stocks also. constellation brands is one of

them, the parent company of robert mondavi wine and corona. shares originally rallied on the they have reversed course and are trading lower. this is due to the impact of the california drought on the business. and shares are up by the most since last november for caesars entertainment corp. -- company. did have better than estimated earnings from alcoa. and the fed minutes should be out in just about an hours time. for more on the market, i'm joined by john canales in boston. you're actually pretty optimistic on the course of stocks for the full year. data youus as to what are zeroing in on in terms of economic data that may support

your view. the firsteally hard, quarter of the year, almost from the first day of the year -- the poor economic weather in eastern part of the country serving in december that went into january and then february. it is hard to disentangle that from any slowdown in the economy. i think the fed has told us they were unsure one way or the other. last week's job report for march kind of helped to begin to answer the question that it probably was a lot the weather. quartere in the first somewhere in the 1.5% range in gdp, but we should get a snap back for the second quarter. and by the end of the year, back to that three percent rate. >> and you are looking for a 10% to 10 -- 10% to 15% gain on and at one >> yes,

point, the stocks and bonds were up 1.8%, and the economy was excited to grow 1.8%. if you have not already readjusted your portfolios, we at't think bonds will stay 2.75 for the full year, and we do think that stocks have a good upside. >> you are looking at consumer discretionary stocks, which is interesting. most groups have had a really good run, but consumer discretionary in particular has done well. are the economics going to be strong enough to continue to support growth in those stocks echo -- those stocks? >> they should be. one of the biggest drivers in consumer spending is household net worth, all assets like equities and bonds less than liabilities. that continues to grow. that is a big plus. the job market is getting better piece by piece. created 190 2000

jobs. april should be better. wages are up marginally. booming, still only doing about two thirds of what we typically do at this point in a recovery, but probably enough. i think the high-end is benefiting more, but the low end as well. >> thank you for your outlook on the markets. to 15%oking for a 10% gain over the course of the year on stocks. we will be on the markets again in 30 minutes. "bloomberg west" is next. ♪ . .

>> live from pier 3 in san francisco, welcome to the early edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. emily chang. a major security flaw could affect two thirds of all internet servers and delete sensitive data vulnerable to hackers. we will tell you what you need -- asw. and will comcast gets grilled by senators