>> welcome to "lunch money." i am adam johnson. take a look at the menu, here's a we have today in motors. .or decides on a success we have got that and all more -- and so much more from the beijing auto show. world, the vice president is talking tough against russia. in movies, we will hear from a cofounder of the trifecta film festival on the most anticipated movie of 2014. finally, in wild card, what's -- what makes the burlesque star so fascinating. you do not need me to tell you

but we will tell you anyway. let's kick it off with what everyone is talking about at the supreme court pr humans that could decide the future of television. at odds, the legality of the television and internet service area. the broadcast tv company infringes -- says it infringes on its copyrights. >> i would say this is the most important case in the last decade in media. if aereo is successful, it raises all the questions about the billions and billions of broadcasters. it is not successful. do people really want to pay what they are paying for cable? your cable bill is probably going up because the fees the broadcasters get will continue to grow up. >> betty liu spoke with the area founder and ceo. this was exclusive. at supreme yesterday court arguments. >> the whole opinion has been about making sure the consumer gets the signal. it is not about making a couple of guys rich. in week on, a completely

different technology, based in the groups of broadcasting. none of them dispute the facts. unfortunately, in this case, they do not have a way to dispute fax. the technology works the way does. there is all this concoction and false narrative being created that somehow this is a copyright problem. it is not. the problem is that it is a business problem. these guys are reacting with what they know. they continue to make too much money and have no incentive to change. >> can you understand they are cbs, abc, fox, nbc, spending millions of dollars in that basically you are charging people eight dollars a month to access. what you're talking

about as innovation, they're saying is that. >> here is the issue. we do not apply the technology to a cable channel, there is a reason they're called free to air broadcast television. the essential bargaining with the consumer and congress is the program in public interest convenience and necessity free to the consumer. they make money, billions of billions, with advertising. 90 plus percent. the bargain is preserved. 60 million people today. they use it as an antenna. are those people infringing on copyrights? they are not. companies make money selling equipment and technology. every antenna manufacturer out there. all these companies make money by selling technology -- >> you are more than just an equipment divider, even if the equipment is in the cloud. you want to be more than that.

is, --question intot's say you get original programming and start developing your own channels. does that not change who you are? no, a great example. get a retail box, plug in antenna into it, and in fact, tivo will sell you video-on-demand movies from the internet side-by-side. where is the copyright infringement? it is only because i have located the box and made it simpler for the consumer to get it? >> what about the broadcaster side of the argument he -- argument? he has argued more than 20 cases in the sprint corps and is advising the broadcasters on their case. >> the question is strictly a legal one. it is not about what businessman to whom and talk to you. copyrightly, does the

law permit the company to yank signals out of the air from broadcasters, bundle them together, and sell them to the entire american public for profit without paying for the underlying content. >> would it be better if he was not charging for the content? class it would be an interesting and different case there. the broadcast networks spent billions of dollars every year creating and acquiring content, marketing and distributing content. our broadcast television programming is the envy of the world in part because they expect to get money from it. for're not just doing it the experience. they sell them to make money off of them without compensating -- >> violating the copyrights. -- ll read you

"aereo uses new technology to allow users to do the same old thing. the only difference is that the users do not purchase and maintain the equipment." why is that wrong? >> the model aereo is using is not a technology model. what you were just reading suggests otherwise. aereo technology is not innovative. the technology has been around a long time. it is contorting of the copyright law to try to say black is white and white is black. let's explain that to me. >> aereo is not in the business of just, they are not selling you hardware. it is not that you go to beth i and pick up an antenna called aereo. that is exactly what they do not do. you cannot just go by the antenna and use it. you have to sign up for their

subscription service. >> they say that pays for warehousing the antennas. basically, you're renting the space. >> but you are not. >> why the idea i aereo seems simple, turned up the technology is not. in salem,man. access new hampshire, that makes the whole thing possible. ♪ manufacturing facility in new hampshire, machines are assembling hardware. this is the aerial antenna. >> aereo gave us an inside look at the manufacturer where the product came together. where broadcast tv. it is difficult -- different

than using rabbit ears. the antennas are not mounted on top of the subscriber'tv. they are stacked on board. thatthen slide into a box can accommodate 5000 to 7000 cameras and mounted on rigid rooftops in cities across the country. the antenna sends atvs and onto a transcoder and then a dvr, allowing you to stream online and allow you to pause or record. >> it pushes it down the wire. whether you the customer want it or not. this model, we are only listening to what we want to. >> the capability of you what you can manufacture? >> [indiscernible] >> area plans to operate in 22 cities throughout the year and to accommodate whatever level of demand comes its way.

>> as demand grows, we can grow with that, as opposed to the conventional model that says, i will build it out. build a very analog business model. >> bloomberg tv has a distribution. we will look at the legacy of alan mulally as he prepares to step down. , hm issueaster monday has been going on for 50 years now. racers lineup with a near 110 pound sack of coal on their shoulders. they race to another pub about three quarters a mile away. take a look at the winter. winner. [applause] ♪

>> this is "lunch money." we are streaming live everywhere, online, on your phone, tablet, apple tv. i am adam johnson. for decided on mark fields as .is -- the next ceo stephen engle spoke to mulally about the transition and a whole lot else at the beijing auto show. your last year as a ceo. >> not make me go now. >> mark and joe hendricks and all the people you know, that is probably the finest leadership team in the world.

they're all developing very nicely. very proud of them. >> for growth in the chinese market? class i think it will continue. strength of the economic expansion in china will probably be 7.5%. around 7.5%.oing in ford's case, we're bringing of plan you know well, wary all the different vehicles available amount to consumers in china. based on that banning product category him as well as the economy, i think we will continue to be preferred here. >> you have your eyes set on the number three provision for an automaker for sales. we are within striking distance for nissan. we are the past toyota last year. light -- like to sell product. >> we love serving the consumers in china. as you covered, if we keep the they -- theall,

consumer will decide who the leaders are. >> 200 71,000 sold in the first quarter. 1.04 -- 1.804 million in china. our additional vehicles, sales will continue to increase. we are so excited here. a million? be over qwest customers will decide. >> will it be higher than last year? >> we will not make predictions but it sure is nice it will be preferred in the purchasing decision. >> lincoln, you're for the question before. you're late to the market. did that give you -- you see now the luxury works. >> an interesting question. in a way, that is true. it is interesting the luxury -- they will be paying

toot of money, especially give them great vehicles with better pricing. i think the new lincolns, the response they're getting, they will be well received. >> what kind of advantage will that give you? class we will import them for a while. >> this may be the last year alan mulally will be running the home at fort and attend that auto show. legacyller discussed his with cory johnson. skepticalf people are with ford. jack bought everything under the sun and build for it and took over. in and in detroit, they called him jack. soldcame in and

everything. .e got rid of jaguar, volvo every other brand and size ford and lincoln. he also borrowed a ton of money. .e mortgaged the kitchen that is what got them through. >> it reduces the number of different types of cars. >> that is most important, he changed the culture. it had been an infighting corporate board room, a lot of general motors style. he came in and said, listen, it is a family-owned company. we all have one vision and we need to have one goal and we need to fess up and tell each other the truth about what is going on.

the firsts is acolyte, the first guy to buy into alan'strategy and start holmes made in>> a factory and delivered to your door. we will show you how they do it. turning passion into business, literally. we will be shown how. ♪

>> this is "lunch money." today in property, existing home sales fell but did not fall as much as expected. class you are right, they did fall less than the forecast. home sales fall by 2/10 of one .ercent, and dropped this is march and we're supposed to see housing pick up. this is not necessarily create news. single-family homes unchanged

during the month. this,re is good news to you could say it is the supply coming online. would not behat great news. you have too much supply. what we're seeing is supply shortages. it is better we have homes for sale. sale.homes for when he think of a prefabricated homes for sale, you do not think of luxury. there is actually one company doing it. >> this is our factory. all of our homes are made here. we have a proprietary structural steel frame we use that is patented. it allows us to build a house completely in the factory silica transport on a standard truck in

the country. take the steel frame in the middle section of the hinges. this is where the floor will fold. other --e joints for a for air filtration. the customer and anyone outside will see a completed kitchen. everything finished. the structure is so strong by down, -- e fold it >> they arrive on the truck. the modules picked up off the truck, put on the foundation. the house actually unfolds. then the walls swaying. ♪ as a customer, you design with

architects and becomes a 3-d model. the plumbing and the structural and all that. the demand is very high, growing two to three times a year. that means they cannot ship high-quality homes very far from the factory. --y traditionally have high they shall -- basically deliver high-quality. believe the we quality is higher. >> that was incredible. moving on, the film festival is in full swing. we will talk about desktop -- talk with the cofounder.

joe biden is talking tough in ukraine. we will take you there. ♪ >> 26 minutes past the hour. bloombergtv is on the markets. check out where we are trading right now. a fixed the day of games in a row. the longest rallies since september. the index has added 3.5% at that time. a couple of thoughts we are watching today. mcdonald's, the world's largest food chain, first-quarter earnings missed sales. a struggle to attract from the past year as the complicated menu slowed service. we are watching facebook.

credit suisse updated the social , bumping the price target to $97 per share. the consensus estimates are too conservative and underestimating the potential of new products. ♪

>> 100 years of solitude among other works. he died late last week at the age of 87. a 15-year-old boy survived a five hour flight from california to why -- to hawaii.

climbed up into the wheel well of a boeing 767 and flew all the way to the light. he did not regain consciousness until an hour after the plane landed in hawaii. passengers for the sunken ferry crewsd and waited while recovered bodies from the vessel. about 190 people still missing. a majority of victims are students from a single high .chool they were on a class trip. today, joe biden expressed u.s. .upport the u.s. underlined support for politicians. biden reiterated the white house's position that it does not recognize russia's annexation of crimea as legitimate. >> no nation has the right to simply grab land from another

nation. no nation has that right. russia'sever recognize illegal occupation of crimea and neither will the world. as was demonstrated by the overwhelming vote that took lace in the security council in the general assembly. >> possible long-term solution, weakening russia's leveraged by bolstering ukraine's infrastructure. >> more is coming so that no let me be precise, so that russia can no longer use energy as a political weapon against ukraine and europe. >> shorter-term, the u.s. will help out with ukraine's elections next month. >> the united states is providing substantial assistance to make sure there are clean and closely monitored so nobody on

the 26th of may can question their legitimacy. i am encouraged, genuinely encouraged, to see so many ,eople rejecting violence choosing the ballot box over bullets, to determine the ukraine's future. for the u.s.? the white house incurs further penalties if moscow does not back down. coming up and movies, we will hear how social media is completely changing the event, for the better or worse? ♪

>> that is the attorney representing the networks in front of the supreme court as they argue their case against area. this is the q&a portion. let's listen in for a moment. does abriefing really lot of laying the groundwork for the case. we felt like the justices had very good questions and we're happy to point them in the right direction in terms of our view of the case. law he coming obsolete in light of [indiscernible] this case does indicate how the copyright laws will fly in the digital age. we think there is nothing about the digital age that makes copyright laws obsolete. some of the arguments being made on the other side of the case

suggests as long as the content is provided -- the attorney, paul clement, representing the networks as he argues the case of copyrighted judgment against area in front of the supreme court. the supreme court is likely to rule in several months. stay tuned for all the developments. we will bring them to you. annualurn to the 13th film festival in. in. they are kicking up a lot of buzz. withanie ruhle set down shane rosenthal. she cofounded the film festival with robert deniro in 2002. to bei feel so fortunate able to continue the film festival. i do not even think we would have movies, let alone being sitting here 12 years later. the festival evolved into good stories for some of the most diverse audiences in the world, right here in new york city. -- you it is not just

got panels. sxsw? >> it is a great comparison. we will have our own identity. it is a bar mitzvah year. we will turn into something special. look, about 12to years ago, our reality was vastly different in how it -- and how we communicate was different. spotify, instagram, you're not talking about tweeting. how you got your message out there was vastly different. you have all these different forms, they are all different ways to tell a story appeared as filmmakers and storytellers, we have to embrace that. that is what we are trying to do at tribeca. >> all of these platforms threaten the institution? have they lower the barriers of entry so these first-time filmmakers can have a big

audience? >> without question, anybody can have a platform. that is a good thing. the products, the films, is it better because anybody can have a voice? no. people still have to learn how to edit, they have to learn the art of telling a story. that is a lot of what we do in a number of master classes. we tried to focus on story. the interesting thing to us is when we do something like our transmedia program. we are taking technology and storytellers and putting them into the product that comes out of this, the stories that come out. >> you have an online edition of the festival. because you want to broaden out? >> no, because not everyone can come to the festival.

i hear that you missed the screening last night. hopefully, you will be able to see it online. there are different types of programming you can see online. now withing a project new video artists, new online artist. we spotlight and curate that for people who do not want to search around and do not know where to look. atlly, being able to look new talent, no matter where they are in the industry, spotlight it, and watch the talent grow. quest you made a change this year. opening night comedy premiered the documentary and sold tickets for it. this the first year you did something like that and why? >> it was the first year i could. it was thrilling to be able to sell tickets for the first time to an opening night. also, the nasdaq was actually a product of the film institute.

it was a proud night for all of us at tribeca. the project came out of tribeca all access program. it landed opening night at the beacon. >> what is tribeca's brand? toronto phone tester -- film festival has an identity. community, the spirit of the individuals. when you look, we are about triumph survival. great stories. new york certainly has the most diverse in the world. quest you have a ton of access. flexibility? your when you're on your own, you have complete independence to make whatever decision you want. when you partner with someone as big and influential as msg, does it limit you?

>> i do not think so. i hope not. i think it will really give us the backbone, things we have to re-create every year. us an amazing sponsorship team, additional sponsorship, stronger marketing, it gives ush, and different venues we never had before. forp next, brand building best style. ♪

>> this is "lunch money." i am adam johnson. today, women breaking the mold. an organization which supports women's scientists and researchers on the brink of discovery. an amazing story. here is how she got started. >> the whole project started probably 20 years ago when i stopped being able to explore in the field. i had three small children. somebody suggested i look at the role of women in x duration. i could not go out in the field for a great time as i had been. i stopped being able to travel as much. i look at the role of women in exploration and did not know there were many people. quest people think of the world

as well explored. what is left to discover? confidence, but exploration is about everything, and if you look at magazines like science news, which i am an avid reader of, everyday, they come out with 15 new discoveries. they are the people on the forefront making the discoveries that help the rest of us. quest we should not think about exploration in terms of guys trapped -- dressed up in suits heading to the south pole. have 74 fellows. some of them do not have high school degrees. some of them have multiple phd is. -- phd's. their discoveries really change

the way we understand what the world is. quest what is the roadblock raising money? even women investors have a harder time raising money. two women explore or have a harder time getting money than men? quest the hardest time of all. i think there are multiple reasons. not think about women as scientists in our society. that is why this organization is so important. all of our fellows and flag carriers, the flag is very important because it is a symbol of women going into the field to make discoveries. more than 100 women are engaged and they are the people out there on the forefront. they will serve as role models to everybody. i believe everybody is an explorer. quest who do you turn to to raise money?

>> mostly individuals. we are in a small organization not affiliated with any academic organization. it is harder to raise money. we are trying. we have given away about a half-million dollars in the last 12 years. quest another pioneer of a different sort. arguably the world's best-known burlesque star is taking her years of expense on stage to create her own monterey. -- lingerie. >> i am known for being a burlesque performer but also a lingerie designer. for me, my relationship has always been about seduction. my fascination and obsession with lingerie started at a very young age. i watched a lot of old movies with my mother and was i gotated by the lingerie sneak peeks of. my first job was working in a lingerie store.

i feel like women are more dangerous now and are willing to try new things, and especially with my collection, i originally did a few things. then we started growing -- throwing in the risqué pieces and women were responding and that makes me pleased. not always easy for me in the course of my career. i walked into a strip club in 1991 and it was all blondes and rock 'n roll music and neon bikinis. i could have walked in and said, i do not belong here, i'm not ike them and i want -- but walked in, there is no one like me here. i will win. when i first started making shows and posing for risqué pinups and that sort of thing, it was taboo. burlesque, traditionally, in the 1930's was entertainment geared towards men. now you have the movement of women inspired by creation and

the confidence they find in seeing or performing a burlesque show. not afraid anymore of really owning our sensuality. happy toow and very shift from burlesque shows to building my brand and staying focused on something i think i stand for. >> talk about fearless. a 77-year-old man was trying to make it across the tracks. luck was on his side. he escaped unharmed and shaken. today's mystery meat. ♪

>> is 56 past the hour, which means bloomberg television is on the markets. i am matt miller. the hour, we're seeing gains across the board. the s&p 500 putting up a gain of 6/10 of one percent. if it finishes in the grainy, it will be the sixth day in the row

-- in a row. dow jones industrial average up 100 points. the nasdaq gaining more than one percent. in thefocused dive world's stocks, adam johnson. islet's talk about what working right now on the market. might surprise you. time for a little insight and action. low quality, low quality stocks doing better than high-quality stocks. bloomberg ranks stocks a through f. better year doing to date than high-quality. cyclicals are doing better than more defensive consumer stocks. small stocks doing better than large stocks. this is curious. it suggests people are getting more aggressive. given the fact we had a bull market, a lot of stossel or five years, now you have to go a little farther out on the risk spectrum. that appears to be what is

happening with the numbers. we thank him for sending the numbers to us. he commented. the two must turn in markets has all been about adapting. there is still underlying risk appetite and buyers still have firepower left. bulls remain in control. curious what is happening when you look at the numbers. we decided to take all of these cues. lower quality stocks, cyclical, smaller stocks, and we found 33 of them that fit. we wanted to try to understand what kind of companies being talked about. here are some examples. education, barnes & noble, sonic, they are cyclical, smaller, and, lower in quality. i will not give you the 33 again. i'm not interested in giving you lower quality, but what i am saying is you have got to think about what in why is working this year. be aware of why some of your names are going up. it is not necessarily because they are high-quality names and/or growing. of black sheep, the

33 we identified, up 12%. 1.7%. look at your own portfolio and understand what is moving and why. >> thank you. another group of stocks we are keeping our eye on this hour is large pharmaceutical stocks. big deals going on in that sector today as you may have heard already. it decided to focus on its cancer treatments, the unit that handles those drugs. remaining businesses are heavily focused on vaccines. a very interesting move. the ceo was on bloomberg tv to break down exactly how the deal is shaped. surface, it sounds complex, but it is very simple. we are acquiring 100% of their vaccine business. they acquire 100% of our business, and we're building a new joint venture the consumer will control and operate. class also in the job market deals, pharmaceuticals offs -- offered to buy allergan, the

maker of botox. it is a cash and stock deal. the support of an activist investor, bill ackerman, has .eld rate 10% stake bill ackerman is now targeting the maker of botox. notng a takeover would raise any trust issues. a big rally their and that is driving stocks around the board. more on the markets every 26 minutes and 56 minutes past the hour. ♪

>> and live from pier three in san francisco, welcome to bloomberg "west" where we come innovation technology in business. against major broadcasters. arguments today at the supreme court. golden warriors purchase and make plans for a new arena. we will talk to peter gruber. first, a