>> welcome to "lunch money." we tie together the best stories, news, and interviews. we have a special tax a pregame here, including how not to pay uncle sam. in sports, make that two green jackets. bubba watson is up there with arnold palmer. an herbalife is getting another follower. and the starbucks ceo talks about minimum wage and their partnership with oprah. atnerilliam shots -- sh

has something completely different. first, we kick it off with what everyone is talking about. the standoff between ukraine and russia. >> tensions rising in ukraine. militants continue to occupy buildings despite a deadline to leave. an emergency meeting of the un security council. they blame each other for the violence. >> tensions between russia and ukraine are kicking up a notch over the weekend. at least one ukrainian service member was killed in a shootout with a pro-russian gunmen in the eastern part of the country, which has a large russian speaking population. cities in this part of the country that we are talking about our kiev and others, that had flareups last week. just seen of a police hanging sides.

we cannot say that this is just the russians. there is obviously a part of the local citizenry that is pro-russian. ofre have been suggestions russian involvement in organizing these bodies. >> that is not what the russian foreign minister says. >> we do not interfere in internal affairs in ukraine. it is against her interest. we do not have agents there. by the way, are russian intelligence agencies. parlay the remnants of the kgb. what is their position with in the battle that is happening on the borders? >> russian aims in ukraine are not territorial expansion. but, fomenting unrest inside of ukraine and challenging the legitimacy of the government in kiev and destabilizing the

government ahead of the elections. >> we're talking about the ukrainian elections. a lot of this will be ironed out in the democratic process. >> may 25, when they have their democratic elections, is when they decide what their future direction will be. until then, i think russia will let the ukrainian student work for them. let them continue and see how bad this can get. this can just pop them up. it will not devolve into more deterioration. >> the u.s. wrote its own check today. they are signing off on a $1 billion loan guarantee to ukraine. they did not shy away from more russian sanctions. clear; to its, including the russian finance minister, that the united states will continue its assault on russia for its illegitimate intervention and occupation of crimea.

>> money is only part of the problem. if you listen to john mccain, he wants to give guns to ukraine. >> we ought to at least give some weapons with which to defend themselves. so far, this administration has not only not done that, but they will not share their intelligence with the ukrainian government. i can tell you from my conversations with people in the government that they feel abandoned by us, and rightfully so. this is shame paul. >> right move, wrong move? former white house security advisor, what do you think about senator mccain's position? >> he is wrong in this case. it is very appealing, but if you are not ready to go the distance and alter the military balance in a significant way, you are throwing fuel on the fire. that is not going to go your way. ukraine does not have a viable military solution to this

problem. >> that could leave the u.s. in a pickle. we have a perspective from the wall street journal editorial board. matthew joins us for the first time since 1654, when ukrainian cossoacks formed an alliance with moscow. ukraine looks like a loser. just how dearly will the u.s. pay? >> the ukrainians will feel like they were encouraged take this tough line against russia. when push comes to shove, they will find out that the west billy does not have their back. this is what happened in hungary in 1956 and czechoslovakia in 1968. it is unfortunately a motive in american policy. our support for democratic movements sometimes gets ahead of our willingness to put power on the ground. this point, it probably

will take more then sanctions to stop someone like vladimir putin. what about a man like bubba watson? make that two green jackets for the eccentric golfer. we will talk about that coming up in sports. we will also talk about taxing americans. this is a special. we will show you how the wealthy are dodging the tax man. by the way, it is perfectly legal. we have something else for you. look what we found. the obama tax return. they paid just over $98,000 in taxes. $481,000 in income. that is the tax income rate of 20.4%. they did not give us much in 2013, about 50% -- 15%. ♪

>> in nation, taxing america. tomorrow is tax day.

today, we're taking an in-depth look at american taxes. from the future of the mortgage deduction to how you should handle bitcoin products. first, let's go to the anti-tax movement. the wealthy have moved around a plan that they can reduce their exposure even 20. this is completely legal. we explain how clever citizens dodge the tax man altogether. >> did you pay your taxes this year? if you did, you're a sucker. here are three legal ways to give the taxman the slip. the options option. an executive is negotiating. the company may offer millions of shares. who wants to pay taxes on millions? take options. gains from options are not taxed until they are exercisable.

either.t just icing, it is often the cake. larry ellison earned one dollar in salary in 2013 and was awarded thousands in options. the estate tax eliminate or. a wealthy. with millions wants to leave earnings to their kids. but he wants to avoid the estate tax. who does not? the parent stepped up an annuity trust and lists kids as beneficiaries. they contribute $100 million to the grat. step three, profit. whatever they earn in excess of interest remains in the trust. it is free of income tax forever. a no sale sale. same executive has $300 million of shares he wants cash but does

not want to pay the capital gains taxes for selling. the executive baros from an executive bank and use his shares as collateral. now he has cash. to free the value, he buys options, granting the right to buy and sell shares later and fix price. if he keeps the price, he has to handle the shares. the tax bill comes years after the initial borrowing and his money has been working for him the whole time. >> very clever. if there is anyone who wants less tax, it is grover norquist. he is the creator of the anti-tax pledge that every republican side. where are we on changing the u.s. tax code? >> at the federal level, nothing is moving for the next three years. in the states, 24 states have a republican governor.

they're cutting taxes and performing labor laws. 13 states, california, illinois, and maryland, have complete democratic control. they are turning themselves into greece as quickly as they can. burdenou look at the tax on a childless individual, the average individual -- level is just below average in most country. isn't that something to brag about? >> we need to grow faster, rather than slower. close to where you're up this is not where we want to be. a started this country with tax rate of two percent. we decided we could not stand it anymore. 2%. there has been backsliding since then. r will not rest until he gets the tax system fixed. there's one tax break the millions of americans take advantage of.

we're talking about the deduction for interest payments on home mortgages. the ceo of the mortgage bankers association warns that getting rid of it could cause more problems. >> i would be concerned in isolation -- as you said, 38 million americans take part in mortgage interest elections. the vast majority are at the lower end of the range. for example, 91% of all mortgage interest reductions are below 200,000. two thirds are below 100,000. we're talking about a benefit that is appreciating by those who file tax returns, younger americans. americans under the age of 55 are the predominant users. under the age of 35 actually make up the largest majority. >> then what is the rationale behind doing it with us? so many people said it just helps rich people.

this is the opposite of what you're saying. >> i think that is one of the misnomers. those who call on us to lower the cap on interested action may make americans feel good. it will not do much for the tax revenues for the treasury department. you have to smack at middle-class america for that to happen. the brookings institute today study and estimated that you would have a one-time effect on home prices. >> $70 billion per year? that does not sound like a little bit of money to me. in its entirety, you're right. it is a big amount of money, but it would affect housing demand, which is 20% of the gdp. not a good solution here. you're talking about a core provider of jobs and revenues, tax rolls, etc. million or $100 million

in tax relief -- that creates jobs and brings tax revenues in for every home that is sold or built. you lose one to pay for the other. >> corporate tax rate is another dirty issue among executives. here is former aig chief ed greenberg and bob posen with betty liu. >> we now have paul ryan as head of ways and means. they are very creative guys who work together to put an interesting proposal on medicare and they're ready to do something different. both of them realize that the biggest problem is the $2 trillion that we have staying overseas. u.s. profits are not coming back. if it comes back, it is taxed at 35% under u.s. law. if it stays there, it is taxed

at nothing. we have to find a way to get that back, because right now it cannot be used to build factories, to get jobs, it cannot even be used to pay dividends to shareholders. it is really bad and it is the biggest constraint that i believe is on economic growth. they want to change it. these are two younger guys who have the creativity to do it. >> you are singing hank's song. he has been pounding this to death come a saying we need to bring the money back. >> yeah. theyey invest the funds, ought not to be taxed. the incentive is to bring it back. if you do not do that, we should give them the option to pay a lower tax. or invest funds. one or the other. >> why can't they do something with that money overseas? >> they can invest overseas. that is what they are doing.

that is why it is counterproductive for the u.s. you have companies like microsoft with $80 billion overseas. they can invest overseas and they will. it costs 35% to come back to the u.s. it is not a sensible thing for the u.s. to encourage that. we encourage these companies to invest overseas. what we need, as hank says, is an intermediate rate. if you look around europe, the tax rates have fallen. the marginal rate is 17% or 18%. that would be a reasonable rate. if the company has paid in france or u.k., 17% or more -- tax --if it is in a tax haven, it has to pay the difference. 17-0 is 17. that is an intermediate rate

that people could live with. >> watch "taxing america" all day. it is all good until you get that 1099 form. does the nasdaq ceo have to say about michael lewis's claim that the stock market is rigged? and we will take you inside the luxury golf retreat that wall streeters are retreating to. and it is marathon weekend. there was a course record on the london marathon. and in korea, a marathon welcomed amateur runners for the first time. 225 runners took advantage of the open policy. the only requirement was to complete it in less than four hours. hurry up! ♪

in threee second time years, bubba watson has won the masters. he shot a three under 69 to win the tournament by 3. actually gets that green blazer for a second time. he is noted for his winning twice in six attempts. only arnold palmer has done that. word does he go to celebrate? the waffle house, of course. a couple of excited diners tweeted out pictures of watson. real."aid "keeping it and there is a new ultra lux fitness center in manhattan that could give you -- it is attracting a lot of guys

who can pay the price. members of the pga tour, wall street or worse, a few celebs. we got to go inside. >> is a tough choice that new yorkers have had to deal with for years. chelsea piersat is closed. to play, buts $65 good but getting there. after three decades in the pits, they saw an opportunity in the newer golf scene. >> you can read a tip in golf digest on how to treat your body, but we get so deep into it. we all come together and work on it. it is a one-stop shop. shut-insat wall street willing to pay $12.5 million to start, golf and body will get you back in shape when accounts.

square-foothousand facility, one block from penn station. schiff gave us an inside look at what it offers. fitness equipment, world-class trainers that work with top golfers like luke donald and jason bay. living room to entertain, a café, and hd golf simulators. withrea is equipped leading golf radar that cost $25,000. it gives data on your club handling and the ball flight. adam scott has been in to train and jimmy fallon is a member. the managing director at deutsche bank started training at the complex last year. he subsequently won the british amateur open. >> everybody who is a member here enjoys playing golf. it is even more refined in that everybody wants to get better at playing golf.

it is a toolkit to get better. >> it is hard to resist. for high rollers with no time, but money to spend, and a drive to play better. we would not be surprised if there are more opening in the near future. matt miller, bloomberg news. >> time to get off the greens and back to business. bill ackman has victory in his war on herbalife. he starbucks ceo on where stands on raising the minimum wage when we come back. it is 26 minutes after the hour, which means we are on the markets. u.s. stocks are rising today, rebounding after the worst weekly losses and two years. better than expected retail sales help to give markets age-old early on. one we're watching is web m.d..

the site is forecasting sales will come in at $132 million, at the high end of the range. they are surging by $.17. we will be on the markets again in 30 minutes. ♪

>> this is "lunch money." we are fully digital, we are online, we are on mobile, we are on apple tv, everywhere you are. today's moving pictures -- they fired tear gas on protesters in caracas. this came days after the president held talks with opposition leaders in an effort to end the crisis. the antigovernment demonstrations are entering their third month and have left dirty nine people dead. firefighters in chile are struggling to control a massive blaze that has destroyed more than 2000 homes around the city.

it started two days ago in a forest outside of the city before spreading to nearby homes. 12 people have been killed and 8000 them up homeless. the search for the missing malaysian airlines jet has entered a new phase. unmanned deployed an submarine to scan the ocean floor. it is being used after they stopped picking up an underwater signal. bill ackman scores a victory in his war on herbalife. the fbi is investigating the company, according to a person familiar with the matter. they're looking into the marketing practices, which ackman has called a pyramid scheme. he told stephanie ruhle that he is prepared to go all the way in this light. >> what we focus on is not the stock prices anyone day or month, but the first --business progress.

we're telling the story of regulators and making sure they understand what the issues are. they could issue bonds to do it. we were forced out of the trade. we replaced the position with credit default and we keep it going. this is not a trade for me. we will take this to the end of your. >> herbalife says it has no knowledge the investigation. is this finally bill ackman's moment in the sun? stephanie ruhle has been following it closely. >> to call this a saga is an understatement. it was 1.5 years ago. bill ackman has a special conference just for this, to say this company is pure evil. he is going to take this trade to the end of the earth, for the betterment of society. he believes that they are taking advantage of low income people. since he came out as this major source, everybody and their brother in the hedge fund space was against him, from demo and

carl icahn -- many have gotten out of that trade. some are still in their. bill is the only one who is notably a short. stock was down. bill has his moment in the sun. >> what will the feds be looking for? we have adam, a senior investigator. >> the governor is going to look for three things. they're looking for evidence of lies, cheating, and stealing. what the government is likely going to focus on is whether the company is selling or not really selling its products to real salespeople, but giving it to distributors in exchange for a fee and claiming those fees as real revenue. >> this is what ackman has been calling for four months. they have said that this investigation is going on. how real is it that we will get

in outcome that ackman wants to hear? how bad does it look? at the end, you say there was nothing there. >> i do not think that the justice department will be concerned about how it looks at the end. thatnk that, my guess is they are treading carefully here. they do not want to do the bidding of an activist investor. it is possible that this has been going on for some time and they have been quiet about it. >> how could herbalife -- do you buy that they say they had no idea that the government was looking into them? >> hard to know. hard to know whether they had no idea. werey be true that they never contacted directly by the fbi or the justice department, in part because, as report shows, there were other regulators looking into this already. it is possible that the government has been getting information from them instead of

reaching out directly. >> in fairness, the company still has big supporters like carl icahn. he has a 17% stake. herbalife says it has no knowledge of the investigation. still ahead, the nasdaq ceo and what he has to say about high-frequency trading. and from starfleet commander to price when negotiation, william shatner tells us about his latest adventures in technology. storms in the great plains. a tornado touching down in texas yesterday. about 100 miles north of houston. a line of thunderstorms produced hail and high winds across parts of texas, oklahoma, arkansas, and louisiana. ♪

>> this is "lunch money." we are also streaming live on every place, including amazon's new fire. president obama wants state and local lawmakers to join the feds in raising the minimum wage to $10 per hour. opponents argue it will lead to job cuts and higher prices. here is what howard schultz thanks. >> i read that connecticut is the first state that is going to $10.10 per hour. they are not doing this until 2017. >> that is what the president recommended? >> the inequality in america is very significant. the question is, do people have

as much access to the american dream as they did when our parents and grandparents -- probably not. i am on the wrong side of the debate for most people. >> they say it may cost jobs. they say they will have to increase the price. >> we have to see about that. i think there will be unintended consequences if we go to $15 per hour. at starbucks, we have always looked at total pay. we pay about the minimum wage. between equity and stock options, we are way above it. we will have unintended consequences of a close above $10. >> the conversation turned to their partnership with oprah. >> we're going to do for tea what we have done for coffee. i have known her for many years. she told me how much she loves tea.

we have always trained about doing something together, but never could find it. i think her values match ours. we want to do something to elevate tea, but do something to get access to education. oprah chai will be everywhere, their stay. only her could raise that. >> the nasdaq ceo also paid a visit to charlie. here's what he had to say about michael lewis, who alleges the stock market is rigged by high-frequency traders. >> he did say that. i think i was irresponsible on his part. let me tell you why. i also feel -- >> you don't disagree with what he said? you disagree with qualifying it as rigged? both.ittle the old. -- of his description of how it works is not accurate.

i feel poorly for the academics. are researched more than any other market out there. we have had 100 academic papers written about how the u.s. market operates. there are a similar number overseas. when you see the stack of papers there, it is about this high. i have read a lot of them. you have people come out in favor of them and against it. >> high-frequency trading? >> this is what academics spend their life work studying. this does not really allow itself to default into a story. it is not a storytelling issue. it is a dense academic paper. >> hfts have an advantage because of speed? >> i would say this -- with the analysis of the market,

it has to be data-driven. it is not storytelling. i compliment the fcc for the roles they have made. when you talk about the decrease in the cost of trading over the last 19 years, you have to take credit for. it is interesting, when you look at this in two ways -- we have to make sure that we give equal access to all investors. that is our primary responsibility. >> proprietary? >> completely. we have, and our data center, we make sure that you are ten feet from the exchange, versus 100 feet. you have the exact same experience. we put a coil close. >> that is exactly what these guys did. >> we have been doing that since 2008. >> i thought it was a genius stroke risk >> we have been

doing it for a long time. it made for a good cover. it is good for the coil business. >> you can watch the interviews on "charlie rose" tonight at it clock and 10:00. from twilight zone to star trek to priceline commercials, william shatner has a long resume. we will find out what he is up to next. and a game of cricket for the royal couple on their trip to new zealand. the duke and duchess of cambridge taking to the field. they were urged by an elder to have more children. he told the pair to do what princes and princesses do. increase your family. there was plenty of talk of kate doing exactly that, but she put it to rest. she seemed to be fine at a local vineyard. ♪

>> this is "lunch money." we are streaming live on every device imaginable. he is a legend, captain kirk. he is also the priceline negotiator. did you know that william shatner is an author, a recording artist, and the owner of his own ios? thing toned the whole cory johnson and emily chang of "bloomberg west." >> in a business venture that i am starting, the results of which will be out in the end of the year, an app that ties to a website that feeds you pictorial and verbal information, so that all of those separate applications combine. this old technology -- when it began, it was bright,

spanking new ideas. it has now matured. you guys are progressing. there is so much more out there. i sat at a table last week with three kids who were popular on vine. i have done a lot of tweeting with 149 characters and getting around that. these kids were the most popular people where i was for their six seconds of communication. know did not who i was -- who i was and i did not know who they were. there was a turmoil going on in this industry. >> right. >> there is such a burgeoning thing going on. we're barely able to see the horizon. >> you are big on twitter, they'll. you recently quit and came back and i'm quit.

your fans are pretty upset. what happened and why come back? tellll, come back so i can my audience and every other audience -- april 24 is a very important day. you'll love it. there was a terrible mixup. the story is too disorganized to tell you, except that i quit and came back on within a moment. it just got away from me. i never intended to quit. it is too important. >> last question. of all the roles you have played, what is your favorite? >> that is not a progressive question. that is an old question. talking to you, how is this? talking to you this morning is my favorite moment of the day. >> so what is your favorite

moment of the day? if you are like cristina alesci, it could be any moment of the day, unless the download is too slow. >> come on. not fastnew devices enough for final? where do you go for music? lets, spotify, and pandora users access millions of songs. which one is right for you? think of them as the kind of car you might buy. option one, pandora. it is like a mercedes s class. it almost writes itself. .t will pump up music gets free, but you will -- some ads. don't want the ads and it will cost you. you cannot always hear the sunny

one on-demand. for that, go to spotify. i call it the mclaren. it is high-profile, flashy, and really powerful. do you really need that much car? if you are a music and tech freak, maybe you do. it has incredible sharing features. it comes with commercials, but do yourself a favor. pay $10 a month to lose the commercials and you can listen while you are not connected to the internet. if you want it all, you may want to go with beats music. it is like a ferrari. it can go to 100 in a few seconds. you do not have to pick an artist or song, you can just make a playlist. free does not have a option. it is $15 per month for five accounts. no one says blending style and substance comes cheap. on the markets is next.

>> it is 56 past the hour, which means we are on the markets. u.s. stocks are rebounding now following last week's selloff. all of the benchmarks are up by one percent. we also had better-than-expected data out on retail sales.

they rose 1.1% for the month of march. that is the most since september 2012. where are the stocks headed from here? betty liu asked the on the number sheets if he thinks selling is over. >> people were expecting a pullback. we got one in january, a little more than five percent. then we went up to eight percent. now we have a 3.5% pullback. >> are we done? >> we could return to the downside and then move up again. overall, the fundamentals remain intact for it the economy is getting better. >> that is what is going on at home. here's what is going on overseas. let's bring in adam johnson. >> we have a tale of two markets. let me show you i'm talking about. this is the mirror image of one another. the numbers actually work this way.

emerging markets coming here today, up 1.8%. s&p 500 was down 1.8%. perfect mirror opposites. if you look at the past two weeks, people have been going into emerging markets. we have been in a selloff at home. the emerging market funding -- eem has seen their shares rise by the most. there are about 1500 out there. curious, isn't it, that that is where people have been going? the stuff you would expect to be. it is the emerging markets that have attracted the attention. we had a chief investment officer from blackrock. a longinvestors with horizon, he is hedging a bit.

we suggest emerging markets for a combination of value and growth. they are cheap and they're going faster. that is why you go to growing markets. you may also want to add another layer in dividends. emerging-market stocks that pay dividends. or emerging-market companies that pay dividends. this is what he likes, ethnic fable. dvye. vy, which is know dbvy dividends. dvye is the same thing. it is diversified across the whole world. there's that upswing he is talking about. emerging markets are reemerging. >> that is adam johnson with opportunities in the emerging markets. on also take a quick check what is going on and commodities. amid escalating violence in eastern europe, currencies are putting the dollar higher as investors seek out a safe haven.

the dollar is stronger. the euro is weakening after comments from mario draghi saying that if it does appreciate further, they will merit stimulus. the euro is a bit weaker against the dollar. gold futures rallied today, trading 13.22 an ounce. this is also playing into safer haven. we're going to go on the markets again in 30 minutes. ♪

♪ a >> live from pier three in seven cisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. the white house wants security agencies to disclose security flaws. how much of a game changer will this be? will it put us more or less at risk? time for tech in the sharing economy, from air b&b to uber and bitcoin, we will see how this is changing thgs