welcome to "lunch money" where we tie together the best stories come interviews and video. i'm matt miller. take a look at the menu. in motors, the new rolls-royce ghost rolls into new york, where it still has a number a lot in the door. paul talks and coming equality and jobs. there's still something left over for a list of things that makes him very angry. the good, the bad and the ugly of earning season. turning a penniless nonprofit

into a solar energy giant. we will spare you the egg puns, but we will have caviar and cap very, just in time for the holidays. play ask to vladimir putin. [applause] >> this is not a game show. the russian president held a televised question-and-answer show. he took questions from a studio audience by computer and phone from places all over russia, including the newly annexed crimea. it here's a summary of what he had to say as told by our ryan chilcote. >> it is not up to russia and the west to resolve the crisis in ukraine.

he hopes he doesn't have to send troops into eastern ukraine. he has the right to send russia's military anywhere he wants. it one final thing, remember how the kremlin insisted that during the crimea crisis, there were no russian forces in crimea. today, he said am actually, there were. >> lattimer putin admits for the first time that troops and overtookuniforms crimea before its annexation. they were in fact soldiers from his country. believe him when he says those aren't russian soldiers in eastern ukraine. this is nonsense. there are no russian armed forces anywhere in the east of ukraine. there are no special services or instructors. all of these people are local citizens. the best proof is if people put off their masks. ukraine,is in eastern

things are not getting any calm her there. three pro-russian militants died and others were wounded last night. putin says ukraine is not having a dialogue with the eastern part of its own country. has spoken about this conflict. what did he have to say? >> none of us think that somehow ukraine can ignore russia or should be hostile towards russia. we also don't think that ukraine should be a vessel state. what we have said consistently is, we are not going to see a military resolution to this problem. ukraine is not a nato ally. in upholdingstake basic international norms and basic international rules. >> we want t bring you some .breaking news on weibo

shares are about eight percent higher. it opened lower than shares had priced at. pricing at the lower end of the range. $17-$19 open. , up aboutrading 18.28 6%. the first investment bank to go public since the crisis -- they raised $300 million in its ipo. the seventh chinese internet to go public and seek capital in the u.s. the most since the fourth quarter of 2007. baba. is owned by ali it looks like shares are trading a bit higher, only about six percent right now. pricing at the low end of this

range. trading right now at $18. we just saw president obama on cbs last night. he does not want mr. boudin to forget about the sanctions. >> what i have said consistently is that, each time russia takes these steps that are designed to destabilize ukraine and violate their sovereignty, there will be consequences. what you have already seen is the russian economy weaker, capital fleeing out of russia -- his decisions are not just bad for ukraine. they will be bad for russia over the long-term. >> the sanctions that russian .eaders have scoffed that he doesn't really care. >> do you believe that simply increasing the effectiveness of ---enforcement investigation

wow. edward snowden makes a cameo appearance. his question to the former kgb colonel, does his nation spy on its citizens like the u.s. does? "we do it, but we don't allow ourselves such a massive come out of control scale." "we don't have the necessary technical means and the funds as the u.s. does. our special services or under strict control by the government and society." very interesting stuff. putin taking the opportunity to dig into president obama. this cross media cold war taking place as to leaders at their top table mats set for another round of talks. vrov oury kerry and la

are meeting. the decision on new sanctions will be made after the meeting. a list of potential targets has been prepared. ukraine --hat runs some of these individuals get sanctioned. that would have an impact. we should be much more public in what we are doing in terms of the price we are costing the russian people. his own personal wealth. we want to make putin and his policies more historic. vladimir putin enjoys a popularity rating of 75%. let's talk our spirit we have the latest from the new york auto show, including an up close look at the new rolls-royce. fan,u're more of a tesla

we will take you through the process of obtaining one. a lot different from buying any other kind of car out there.

>> in motors, the new york auto show opened to the public. i wrapped up my tour of the show room floor. one of the coolest new vehicles is from an old name. rolls-royce. then failed a significant update to its popular ghost model. the company's north american director walked me through what's new with the second edition of the luxury sedan. >> it certainly has all the technological advances that you would expect in a car like this. such as the satellite aided transmission system which was first introduced on the wraith. a stunning sound system within this car. it certainly has all of that. the technology --

>> you want to open the suicide doors? >> would we have the spirit of ecstasy rotary control, that now has the engine drag technology like in your smart phone. you can move yourself around and the navigation system and write letters on that. ask.t me i feel like the i drive system is the most advanced infotainment control in the industry. is it based on that? >> we can share the technological underpinnings on things. this is all rolls-royce. when you get into that spirit of ecstasy controller and right with your fingertip and use all of that technology, it is exactly what a roya rolls-royce customer would expect. >> i always expect in a berlin the door. andou can roll it back up

not have to worry about mold. now a special channel for the new york auto show on mobile and connected tv. it is on bloomberg plus for db andobile web, apple amazon fire tv. anywhere you can see that starting this week, you can no longer buy a tesla from one of the automaker stores in new jersey. it the garden state is the fifth to ban direct tesla sales, saying the company infringes on auto franchise laws. you can still buy a tesla here in new york. here's how. most people go to a dealership when they are shopping for a new car. if you want a tesla, you head to the mall. >> welcome to our tesla showroom. sitse tesla showroom

between lily pulitzer and nordstrom. they have done their research. they are folks were shopping at nordstrom's were picking up a new handbag who aren't as familiar with tesla. they see the beautiful car in the shop and are compelled to come in. >> the real reason they set up shop at their local mall is because it would be expensive to build a national chain of dealerships. just like at a dealership, you could take a test drive before you commit to what is likely to be a six-figure purchase. tesla's are kept in the mall's parking garage. you get to drive them on the open road. insane. it's like a spaceship. there's no sound. i am super impressed with the pickup. we can waste this mustang right now if we want.

then it was back to the store to configure my dream tesla. out yournted to max car so we have a button for that. for those who would like everything included. ofmy car cost just north $130,000. and little out of my budget. i get a raise, i will be back rate. -- i will be back. >> you design your vehicle in the store and then go to a service center to pick up. >> not at the mall? >> not at the mall. we have folks who can walk you through the mall on how to charge it and clean it. >> you can always buy a tesla online. you can even use paypal to pay for it. >> i spoke with the president of the new jersey coalition of automative retailers. it was a lively debate. >> they have lots of options in

new jersey for retailing cars. i'm puzzled by the obsession in the media with making a victim out of tesla. tesla is not a victim. their own victim of bad decision-making to enter new jersey and a number of other states where direct retailing is specifically prohibited. if they find themselves in this fire drill. it is a problem of their own making. there are lots of ways for them to go to market in the state of new jersey and elsewhere. you said it. this is america. it is supposed to be a free country. aat is the problem with manufacturer making a product and selling it to a customer who is willing to buy from them directly? >> framing it as tesla has a

consumer choice issue ignores the bigger mcmoran question of consumer protection. these laws aren't in place to -- these lawss are in place to protect consumers. the statute in new jersey that has been there for the last decade or more provides important consumer protections. sirst and foremost, insurer competition. about thenly worried consumers, not the dealers he represents. you can watch my full show on bloomberg.com/tv or on any of our mobile apps. still ahead, big earnings out today.

goldman sachs and morgan stanley will break it down in company. it has not been a rising tide that raises all boats. income inequality is a real problem in nation. ♪

>> in nation, it is the issue that has been on the forefront of national discussion. what president obama has called the defining challenge of our time. i'm talking about income inequality. >> do we have to have levels of inequality that are getting close to being the highest levels ever anywhere. we are starting to set new records here. paul krugman recently took a

job at the city university of new york to work and to study center. we sat down with him and discussed the issue. thatere is zero evidence the kind of extreme inequality that we have is good for economic growth. there is a lot of evidence that it's bad for economic growth. since inequality began soaring around 1980, the bottom half of america has been left behind. it has not been a rising tide that raised all boats. >> the political history of geopolitics, how does this get solved? >> american history is very encouraging. leadership we have from the affluent classes themselves who said, this is too much. if we could have modern speaking about the

danger of high concentration of wealth as teddy roosevelt did in 1910, we would be a long way towards having a good solution to this. i believe that america has a tremendous capacity and ability to take a look and say, what are our ideals? we don't have to become this oligarchy that we are drifting towards a moment. >> is this a gilded age that we live in now? >> more than gilded age. we are a gilded age levels of inequality now and we are heading beyond. an era of not just great inequality, but inherited inequality. people will understand that. we don't want that to happen and

we can do things that are not draconian, not socialist, but in the american tradition. is thequestion is, what main problem with this economy? >> the basic problem is that there are not enough jobs. lawyers get to be picky. who do we want to offer jobs? >> nbc long-term unemployed like this ever in your career? >> there's never been anything like this since the 1930's. this is a new thing for almost remember -- people who children when theywhen the last saw. have millions of people weapon rolled out of the discretion. we try to do things to make it

more political but people need more jobs so employers have an incentive to go out and look for all people even if they are not people who already have jobs. >> what level do you see as the proper amount of growth that we need to begin to really solve are labor challenges? >> we have slack in the economy. i think we probably have five percent-six percent slack in the economy. we should be growing -- you should be growing several points above the long-run run growth rates. we should be having five percent economic growth at this point. so, when we look and say, great, howe hit 2.5%, that shows accustomed we have become too dismal conditions. >> while researching the problem e inequality, you will earn a salary quadruple the

times of the average new york household income. i'm sure he is very charitable and thinks about these issues a lot. from academics to the corner office, richard levin wants to give higher education to the world. it is not called black gold for nothing. how britain's only caviar maker is roughly feathers in the uffling feathers in the industry. ♪ is 26 minutes past the hour. if you take a look at where stocks stand today, we have a mixed picture. little has changed across the board. we do have the push and pull of these big earnings reports. we have morgan stanley and ge trading higher on earnings. google ipm sinking lower.

not a lot of change overall. weibo -- we are watching the chinese twitter like service making its trading debut today. we will have more on the markets in 30 minutes. ♪

>> this is "lunch money" on bloomberg television. we are online and on mobile. apple tv, amazon prior to be. you name it, where they. i'm matt miller. today's moving pictures, where the video is the story. rough waters are slowing the search for survivors of the south korean very crash. at 149 people were saved yesterday. it nine are confirmed dead. 280e are still more than missing. south korean president visited disaster.f the debt

the ship's captain and crew are under investigation. next up is the indian ocean where the submarine completed its first full mission in search of the missing flight 370. the summaries first two attempts were cut short due to technical problems. it third time was a charm as the vessel combed through 35 square miles of ocean floor. in the area have to size of brooklyn. at that data is now being analyzed. , a story about the awaywhen the horse ran with the cart and the family still inside. ,he noble steed got spooked leadin. the family was uninjured. , google isan

finding it harder to keep up with advertising shift to mobile. the search giant reported first order revenue of $12.2 billion, up 11%. expenses were up as well. 23% in the quarter and more than $11 million. google has been on an acquisition spree. mostly recently buying titan aerospace. goldman sachs and morgan stanley also reported earnings today. shares of both companies soaring after they beat analyst estimates on top and bottom-line reports. it was by a wide margin for goldman. weighed in on surveillance. >> never count goldman sachs out. they know how to make money. >> you have the beautiful chapter where they are having an egg salad sandwich and some diner somewhere. are they still having egg salad sandwiches? >> they have their feet on the ground depending on where the markets are. for the first time in a long

time, an interesting dynamic where morgan stanley has a different strategy. they are doing well. with these numbers, goldman sachs, who you would have thought in this writing environment would have a tough time, i'm not sure quite how they beat estimates, but they are beating them. this is a tough trade environment for them to figure out how to make money. legendary that is the staff that was decreased by one percent here. >> trading accounts for 60% of revenues at goldman sachs. you know these companies better than anybody. 30 seconds -- what does goldman consistently do right? >> they go from the bottom down. they empower people at the bottom of the food chain to filter information up throughout the organization in a way that smart people at the top can really benefit from. >> general electric posted first quarter earnings that beat

estimates. helped by spending margins in its industrial businesses. them to account for 70% of earnings. pepsico reported a 13% jump in first-quarter profits, beating analyst estimates. organic revenue up about four percent. u.s. isnk volume in the declining overall. the good news for us is, we really do have the best noncarbonated portfolio in all of north america. diet tomers shift from non-carbs, that benefits us. >> wouldn't non-carbs volume be higher than two percent? >> no. i think right now you have a category that is going to grow probably in the 0-1% over a longer time. up,carbs will show

outperforming the category. that is reflected in the migration from carbs to non-carbs. >> from the company to the ceo, the former president of the ale is in the corner office. he talks about his new mission, next. going from small to big, we will tell you the story of goal zero. a money burning nonprofit that is now one of america's fastest-growing companies. ♪

>> this is "lunch money" on bloomberg television. streaming live pretty much everywhere online. on your phone, on your tablet, on apple tv and amazon prior. i'm matt miller, in for adam johnson. problemh

and the solution. one of the first to try online education back when the internet was just getting popular. levin is taking another crack at it. he's the ceo of an online education company that partners with major universities to offer classes that anyone on the lannett can take for free. he went down the long and bumpy road with charlie rose. >> when we started in 2000 with stanford and oxford, we thought our market was our own alumni. -- then we opened it to the public and the bad bandwidth was not there. this is still an era in which your videos are jerking around. it had that problem. we did not have the right model for making it work.

we did not have the high degree of interactivity. you watched a lecturer give a and maybe there was some visuals, but that was it. openext thing we did was yellow courses, which were courses- yellow that were great. but few people watched and were streaming in. the materials from the course were distributed but there were no quizzes or exercises. what we have done is recognized that we have the greater bandwidth and we can support lots of people online and once. taking quizzes, reacting to the material, getting feedback. having professors look at the data and improve their courses with constant feedback. is huge.

stanford, princeton, university of michigan them all partners. of more than 7 million people have taken courses in its two years in business. bottom line, definitely has real-world impact. >> think it's giving opportunity to people. it is getting people better jobs and a new life. we have a woman in bangladesh who was a product -- involved in an abusive relationship with her husband. she escaped from her situation and a friend of hers and herself took a marketing course and how to run is small-business course and she is now running a successful bakery enterprise. it gave her a life. a young man in africa had an could not get a good job. course and gotng a good job. he's paying his engineers $1000

each to take a stanford course in machine learning so they can improve their skills. clearly it has a place in the employment market. then we have courses like the penn course in modern poetry. levin's fulltch interview tonight on charlie rose at 8:00 p.m. a large company is not the only one with problems. we take you inside the small companies facing big challenges in order to grow. started as a nonprofit with a mission to bring power to africa. a big part, but no money. nine, they are the fastes th fastest-growing company in america.

it is a world leader in portable solar products. we power your cell phone, tablet, laptops off the sun. we charge phones everywhere from the himalayas to disneyland. our vision is to put power in the hands of every human. when i first joined goal zero, i was thinking, this is the coolest place to work. then it hit me. is this a business or a hobby? we're spending a lot of money. millions of dollars. do they belong in africa come outdoors, emergency? we didn't know. we were desperately searching for a customer. the earthquake hit in haiti. i called and said that these folks in haiti needed.

.t lets donate it we flew the products down to 80 later theyks called and said, we will take everything you have in your warehouse. there might be an opportunity here in the emergency market. so that is where we decided to focus. we identified costco as the premier place for people to gear up in case of emergency. if that really rocketed the business. the zero was recognized as ninth fastest-growing company in the country. i don't think we will ever be -- we are growing the teams that make that happen. big,xt week on small to

the company that makes sunglasses for babies and kids. they send you a replacement pair if you break them. sounds like a good model. our next small to big. up next, clashing over caviar. the british firm that's muscling in on the industry. for those who prefer savory to suite, we will take a look at the business behind cadbury creme eggs. for those who prefer sweet to savory. cadbury. ♪

>> made in the u.k. britain's only caviar maker shaking up the industry while winning over some of the country's top chefs. >> i will try to find the smaller ones. >> he is the co-owner of the uk's only caviar maker. it he likes to get up close and

personal with the product e. england, hehwest helps grow fish which produced the delicacy known as black gold. this is a mature sturgeon. it is his meal ticket. he is been selling caviar for over a decade. it was a mixture of luck and --d fortune that he met >> it would cost a lot of money. we were lucky to meet them. >> the unlikely pairing of a london caviar man and the fish farmers worked. this was no but flash in the pan success story. >> it took 8-10 years to grow the sturgeons. it will take time. >> this is the small and immaculately clean room used to harvest the caviar from sturgeon. the fish eggs are cut out,

washed, salted and that's it. fooduick process for a which will put a serious hole in your wallet. >> 1500 pounds. he european caviar market is closely guarded. when they announced they would make the delicacy and u.k., it ruffled feathers. we have been called a lot worse. >> there've been more than accused of breaching production standards. they have found no fault and his caviar is favored by some of the uk's top chefs. >> this is british caviar produced with sea salt and farmed here in devon. it is a unique product. it ships like new products -- chefs like new products. >> it is not easter unless there are cadbury creme eggs. one of the best-selling holiday products. make the it take to

gooey delight? >> easter is an incredibly exciting time. it's a very important time for us because it's one of the biggest selling seasons. we need to get used to write. we are making 47 million easter eggs. 30% of theut chocolate market. at easter time, we have 50%. the bestseller for us is the cadbury creme filled eggs. we make one million every single day. the creme egg is a solid milk chocolate and inside that you have white fondant. a bit of yellow fondant as well to replicate what an egg looks like. together the two in mold.ook

most of it is automated. the easter eggs you will be eating and enjoying this easter season were made in the last few weeks. they could have been made in the last few months as well. easter ofe at the 2014. easter 2015 is put to bed in terms of planning. we are now working on easter when a 16. a lot of people think they are sold the around. they are not. easterre now working on 2016. it is a ray of sunshine in the dark days of winter. >> here in america, it is not easter without peeps. the little yellow chicks have been around for 60 years. catch the interview with the candy company president on taking stock tonight.

♪

6 past the hour. i'm julie hyman. let's look at where stocks stand halfway through the trading session. not much change as we get the earnings push and pull continuing to affect the markets. some big companies coming out with numbers today.

general electric, ibm, google just to name a few. we will hear from honeywell later today. switching gears a bit, michael lewis's flashpoint shed a light on the world of high frequency trading. now the attorney general of new to fixsuing a subpoena the high-frequency trading firms. what has been going on here? ofe us the big picture here who the subpoenas are going to. what exactly they're looking for. >> this is an important step in the investigation of high-frequency trading. the subpoenas have gone out to six high-frequency trading firms. what that means is there soliciting information to look at various things. it one thing we do know is they're looking at, what special agreements do these firms have with exchanges? it will be interesting to see

how this case evolves when some of that information starts getting pulled in and they start going through it. what do we think is wrong with hft? >> in reaching out to these firms, do we have any idea if they are cooperating with the investigation or how quickly this information is going to be turned over to investigators? >> once they get the subpoena, they have to go through a time frame. at that point, we can probably assume -- we have not gotten direct feedback from the companies on this at this point, but you can assume that things will remove relatively -- things will move relatively quickly. >> we have entered this legal level and you have the regular reactions of the market going on. one of the concerns you are hearing now from people in the marketplace about what is happening with hft? >> the biggest concern is really

trying to figure out if this is actually an unfair advantage to the overall market. what part of the market is being harmed by that? things like the investigation looking into the types of services that these exchanges are selling to, which enable a lot of these technologies to be used, i think the concern is really getting to the bottom of what needs to be fixed, how it needs to be fixed and what the industry is going to look li ke in 18 months. >> refresh my memory here. we have now the new york attorney general looking into this. the fbi looking into this. are there any other investigations out there? any jurisdictions that would be in play here? -- the we will see more two main investigations we are

seeing now. on the regulatory side, the fcc is looking into this as well. looking into this issue at times. there is a lot of hands on deck at this point. a lot of people trying to find out how they should be operating. >> an ongoing issue. i'm sure we will be talking with you much more. thank you so much. we will be on the markets again in 30 minutes. will request is next.

from pier three in san francisco, welcome to "bloomberg west." i am emily chang. shares of the twitter of china are gaining. we are live with the chairman. and willie brown is here to talk about the raging debate over income inequality. first, a check of the top headlines. sap has reported small gains.