>> live from bloomberg headquarters in new york, this is "market makers." >> under armour goes high-tech. the ceo wants to dominate the world of fitness >>. this had fund manager -- hedge fund manager get his map. one of the world's best. >> hackers attack one of the nation's biggest health insurers and still data on tens of millions of customers. we will be speaking to a rival ceo about cyber defense. welcome to "market makers."

>> i don't have a cooled high or pocket square, but whatever. >> girl power day here on "market makers." >> pfizer has been looking for an acquisition after it's failed bid for astrazeneca last year. the biggest provider of adjustable drugs valued at $17 million. pfizer is paying 39% him him. -- premium. another big company attacked by hackers, the second largest health insurer, anthem. hackers installed at on tens of millions of current and former customers and employees. it they will provide credit and identity threat -- that the monitoring -- theft monitoring for prepared short men collected $500 million in dividends last year.

pretty soon, watch out, tom keene. your tweets will be more searchable online. google making them searchable s&s they are posted. the twitter ceo is trying to get more tweets seen by nonusers. >> under armour is building its own digital fitness empire. the sports apparel giant just bought my fitness pal for a total of 506 $2 million. i had a chance to sit down with kevin plank to find out why he is expanding into the digital field. >> with think there is an enormous opportunity and wearables in general. the energy around it is something that as big as we have seen -- no one is around

community. we started this journey of making this acquisition more than a year ago. what we learned with the leadership of our team there was the things we love our in community and we did not have nutrition and a global perspective. by buying my fitness pal, gives us an anchor in san francisco and europe. we can aggregate the largest -- the world's largest digital fitness and health community bar none. 120 million registered users. >> how does that translate into you selling products? >> the one thing we know is the more someone exercises and works outcome of the more athletic apparel they will buy. last month alone, we had over 100 million workouts logged into one of our four applications between my fitness pal and you a record -- ua record.

>> nobody is paying for those. >> we want to drive a value. monetization -- there is an advertising model in place. we don't know what it is yet. there is a subscription model available. the ability for us to push content. last year, we had 13 million youtube views. we have one or 20 million registered users, 72 million of which are women. -- we have 120 million registered users. there voluntarily giving us this data. >> does that mean you are becoming a media/content company? >> our goal with these acquisitions was to sell more shirts and shoes. everything we do must come back to the core.

we think if we can help athletes and help humans and help everyone find ways to make it easy for them to understand the information and track their progress, we think they will buy more shirts and shoes. >> are you getting out of the team sport business and into the health wellness lifestyle? >> we are never going to depart sports. growth driver women's apparel and men's apparel and footwear. it hits on all of those drivers. there is a high school linebacker measuring himself in the door jam of their bedroom. have quantifiable data making that athlete better. for our footwear business people walk into -- the duration of the shoe they have. we have 52 million people outside of north america that now have their first handshake with under armour in this

digital capacity. >> my interview with kevin plank. clearly, he is confident in his $560 million bet on this digital fitness craze. we have to get a second opinion. an analyst at -- he has a buy rating on under armour and says the company's revenues could triple over the next five years. plus an editor at men's health. let's start with you. triple? that is a lot of shirts and shoes. >> big aspirations for a big brand. the thing we learned yesterday from the financials perspective under armour proved they can grow on difficult comparisons. 31% topline on top of 35%. that is outstanding growth in what was a challenging and volatile retail environment. this is a brand that is expanding the company, getting

bigger. this is a 91% north american based business. the world is still open. the footwear is growing double what the core business is growing. there is a lot of opportunity in other categories. >> let's talk about this specific acquisition. you are a fitness guy. i have a drawer in my house that is like a graveyard for tidbits, wearables -- >> from the consumer standpoint that is the biggest challenge. trying to become essential. polls indicate that people who have these fitness wearables come only half of them wear them every day. the burnout rate is really high. after six months, 25% of the people who buy them stop using them completely. a lot of people have bought them once, don't want to buy them again. at the same time, there is a

huge flood of new products coming to the market which is creating a a lot of confusion. >> do they actually get me to work out? >> i don't want to say they have no value because they absolutely do. they still work on very broad estimates. when it says you've burned 1500 calories today, that could be 2530% off -- put 5%-30% off. -- 25%-30% off. it's one of the reasons people turn away from them eventually. they can be very good for keeping you motivated. ultimately, that motivation has to come from within. buying a fitness tracker does not take you from a couch potato to a cross that warrior overnight. -- crossfit warrior overnight. >> the one thing that is not -- your cell phone. let's not lose sight of

where these apps are being used. it is on your phone. your phone is with you every single day and with you at night. mine is. >> under armour is showing up on our phones. we all have my fitness pal. what does this mean in terms of are they going to sell me more shirts and shoes? >> it's all about under armour being a bigger part of your day. they start out making compression shirts. you can use that for one hour a day when you worked out. the cotton gave the consumer permission to use that brand outside of the gym. you are expanding the amount of time in a day that you can wear the brand. this takes it to another level. >> you agree? are you an under armour guy? >> i wear under armour.

it's a great product. the place where i and a lot of the people we talked to come our readers and reviewers where they tend to fall with the absent wearables and stuff like that you are putting in a lot of effort to log the food you eat or charge your wearable. after you have maybe already identified the problems in your routine the reason you've bought that app or that product in the first place you might not needed anymore. that is a big hurdle. can they make a product that is so useful yet so effortless it integrates into my routine so seamlessly that i will continue to use it six months from now? >> the question is how much the company will have to spend to do that. they just spent a lot of money on these two acquisitions.

>> let's put it into context. if they put that money towards sports assets, college teams or endorsements -- >> you could spend 600 million -- >> paying 500 athletes to get on board with their brand. are we talking about the advertising model of old or of new? where will it be in five years from now? i agree with your assessment that the wearables, you lose interest over a few months. if we look back, we are in the eight track phase of this technology. is it smarter to drop 600 million bucks on this type of investment then two teams? >> they just got 80 million users in europe overnight that they can speak to directly. those are users that are athletic, that want to be more

fit. >> that don't have a relationship with under armour. >> if they can speak to that consumer twice a day directly as opposed to putting out some advertisements or coming abroad as an american football brand but speak to them more in their home country directly to what they are doing every single day that is a strong connection that they are wielding and that will enforce a loyalty to the brand. >> they pay just under $600 million. if they paid one billion, would it have been too much? is there a number to make you say this is too much? >> it is too early to tell. we will have to see what they do with that data. >> apple coming into the wearables. how does that wind up changing the adoption rate and retention rate? >> that is a great point.

we will see what happens there. that separates the wearable model into two different categories where you have one that is so simple and so streamlined that you do not notice it is there and you have the other one that is so much a part of your routine the apple watch has so many more things than just your health metrics. we have these two different kinds of models. people will see which one wins out. we have not had a chance to test the apple watch it. >> do you use my fitness will tell that's my fitness pal? >> when you kind of have an understanding of how many calories are in your lunch you have an understanding of how many calories you are burning in a workout they don't really add that much extra right now because i don't trust that some of these apps are more accurate than the estimations i make myself. >> let's see what the value of

these users is to the business. they have wondered 20 million users they can talk to every single day. -- 120 million users. 20 companies have more than them. only 20. some of them are public. inc. in, twitter, facebook and a couple others. those valuations are partner is of under armour's value. >> will we be saying under armour, twitter, lincoln, facebook? >> you are seeing the evolution of a technology company. >> thank you so much, delmon. -- thank you so much, gentlemen. be sure to watch our interview later with my fitness pal's ceo later today. >> finance ministers from greece and germany meet. any progress?

we will go to berlin to find out. >> meet the hedge fund whose as his style of investing is making a comeback. his bond returns 39% last year. -- fund returned 39% last year. ♪

>> welcome back. it is time for some of the top headlines from around the world. germany's chancellor angela merkel and france's president are on a mission to moscow. they will meet tomorrow with vladimir putin over the fighting in ukraine. they will be stopping in kiev where john kerry is meeting with ukrainian officials. the 15 survivors of that translation crash in taipei were all seated in the rear of the plane. -- trans asia crash in taipei. one of the pilots radioed that

its engine had quit working. social media users in china are slamming argentina's president who is on a visit to beijing. she published a twitter post mocking the chinese accent. her cabinet chief says the tweet was a sign of affection. i will say lost in translation. >> do not insult the people you want to do business with. >> we will wish her luck. >> fine. this comes hours after the ecb says it will no longer accept junk rated collateral from greece. here's the greek finance minister. >> we do not even agree to disagree from where i'm standing. we agreed to enter into deliberations as partners with a joint orientation towards the

european solution for european problems. >> hans nichols is in berlin. partner, join, work together, do you buy any of that? >> we did get a big deal of clarity. this press conference showed just how far a part the two sides are. they could not even agree to disagree. we have greece wanting to renegotiate their debt. they will have a new deal out there. doing something, having growth -- what are they going to do for their financing needs? the ecb cut off a key source of funding last night. we have an offer to have a temporary bridge loan. the germans are saying not so fast. we liked the old agreement. we have more clarity. we>> how much longer is greece

going to be able to access certain lines of credit from the ecb? >> last night, they swapped their collateral. they still have access to emergency liquidity assistance. that is reapproved on a two-week basis. there could be a 60 billion euro limit on that. right now, greece is at 56 billion. we have confirmed the broad outlines of it. even if they have access to funding, they don't have much headroom. if greece leaves their bailout program it expires at the end of february. there is not a whole lot to the ecb can do to open any financing window to them. they could be cut out. you have seen a number of basis points, up some 285 basis points

on the day. >> since we are taking down the clock, any word on capital control? >> you clearly look inside of my notebook insult the question i was going to ask but did not get the opportunity to. we have heard nothing on capital control and that is the big question. you saw 11, 12 billion euros flow out of greek banks. we spoke to the ecb shortly after that. they said they were not overly concerned. bank stocks were down some 25-30%. today, they have come back up a bit. the finance minister made a risky comparison. talking about how greece is in the same situation now that nazi germany was in the 1930's. that is a risky comparison.

we will see how that plays out in the german press throughout the next one is for hours. >>-- next 24 hours. >> "market makers" will be back in just a moment. stay with us. ♪

>> we have some news on -- halted from trading. the company has come out with announcement that curtis crawford and richard brown will be leading the board of directors. the back story for dupont is the fund management had taken a stake in the company. they had a 2.7% stake and he has been pushing for a breakup of the company.

he has been meeting with management of dupont to discuss bringing his people onto the board. it is unclear whether these new members are his nominees presumably, you would think that is the direction. ♪

>> live from bloomberg headquarters in new york, this is "market makers." >> welcome back to "market makers." >> we are having some fun on this thursday. it is time for the top bulletin. prosecutors are investigating what of switzerland's biggest banks helping americans avoid taxes. the issue is whether ubs used securities to let owners hide their identities. >> for the first time in three years, sprint has added subscribers.

helping the wireless carrier post better-than-expected earnings. you were americans than forecast filed for initial jobless claims last week. -- fewer americans. a number usually associated with improving labor markets m. >> we have been highlighting the best hedge fund managers in the world. from the 2014 hedge fund 100 list, these are the funds that had the best performances of the year. bill ackman's purging square westas ranked number one. a fund that saw a 39% gain last year. most of those gains came at the end of the year. congratulations. how did you do it?

>> good question. what we do, i suppose, is look at hundreds, maybe thousands of different securities across many, many years of data. we investigate rules which appear to have -- we look for the persistence of those rules. what work well with other affects. we do them in the future. that is the effect of things we do. the reason it is possible is like any systematic or quantitative firm we are incredibly dependent on technology. it is what we are. computers are exceptionally good at doing thousands and thousands of things dids. we can come up with rules, models which should overtime

make money. >> does that mean you are putting traders out of business and hiring the math geeks that graduate college? >> no, we are not. like everything, there are lots and lots of different ways of doing what we do. trading can be done by computers. there are things computers are very good at. we have a stock portfolio with 1500 stocks. there is no discretionary trader that can handle that kind of bread. there is exactly the same issue where computers cannot know everything about the stock or have the gut feel or react as fast or integrate new information into the model as fast as a discretionary trader. there's two camps. that does not mean one is going to win over the other. there are different ways of investing. >> you can't use your gut.

before last year, you had a rough couple of years. what was the biggest mistake you made by not trusting your gut and going with the computers? >> i think the biggest thing we did right was not trusting our gut and going with their computers. systematic models don't work all the time. equities don't work all the time. we all remember 2008 when the equities markets were down -- that does not mean it is wrong. the way we look at it, when we have periods of a flat or poor performance, which sadly happen to us all, we look at what we do from a very skeptical point of view. we are always trying to see if there is something wrong. the fundamental thing is if you can't see there is anything

particularly wrong or statistically wrong, it is likely what you are doing is just doing unlucky rather than broken. we can be wrong. certainly, that was the way we look at our model. they were just going through a. of bad luck -- a period of bad luck. >> are you without not bad luck when you were asking investors to give you -- are you allowed to have bad luck? you are clicking two and 20 every year rain or shine. >> we don't collect 20 when we don't make money. and a 2% management we should be allowed to have bad luck. back to the equities markets, normally managers collected their fee when they were down

50% in 2008. i should also say, it is possible investment won't allow us to have bad luck. that is their prerogative to do that. investment styles don't work for ever and there is a tendency if you fire managers when they had their first bad year, you end up becoming investing in last year. >> a return chaser. what we saw from a number of funds. they tried to chase it and it didn't work. what worked for you? >> i was referring to their terms of investing in managers. there is an element to returns of all securities. if they are going up, they tend to continue to go up.

if they're going down, they tend to continue going down. that is the traditional trend. it is right to chase those trends for a certain period of time. what worked well for us was that over the last six months of the year, oil dropped by 50% interest rates continued to go down and bonds continue to go up in the dollar strengthened dramatically. our model said, even though the dollar has been going up for a long time it will keep going up. it is not returned chasing in the sense of investing in hot managers. it is much more about following trends. the heart of it following trends or following rules in a very disciplined way. if there is one thing systematic

traders are good at it is the discipline of investing. >> you certainly have it. thank you so much for joining us. >> i'm winning for the terminator to start making stock trades. that's waiting for the terminator. >> robotrader? >> that is also the one of the nation's biggest health insurers . ♪

>> welcome back. it is time for the top headlines from around the world. the plunging ruble has meant rising prices in russia and russian consumer prices rose 15% in january. the highest rate in almost seven years. it was worse than economists had originally forecast. there is a vip traffic jam in kiev today.

john kerry is in the ukrainian capital for talks on the fighting with pro-russian rebels. ukraine wants the u.s. and nato to supply weapons. angela merkel and francois hollande are also traveling to kiev today. they will head to moscow to meet with vladimir putin. the bank of england has kept its key interest rate at a record low. inflation may not hit its 2% target until the last part of 2017. it was their last round of forecasts before the british elections back in may. >> cigna out with earnings that beat analyst estimates with a 29% jump in profits. there may be some bumps ahead for the insurance industry. the supreme court will hear a case that could bar the federal government from offering subsidies for insurance premiums , the key part of obamacare.

where closer look at these risks, let's bring in the cigna ceo, david cordani. congratulations on a good quarter. cigna's single biggest driver, increased premiums or paying less per person? >> are single biggest driver is underlying growth. we are growing our customer base, growing our cross-selling of products and our profitability. that is our primary driver. >> when you look over the next couple of years changing the landscape of obamacare, how scared are you of the supreme court decision? >> relative to the supreme court decision, that relates to the public exchanges. they represent a small portion of our overall business, about 3% of our revenue in 2014 was tied to the public exchanges. we did not expect to make money in that business. we don't expect to make money in

2015. while important in the national dialogue, from a cigna shareholder standpoint, it is not a big driver of our business. our business is predominantly in the united states. a self-funded relationship with employers where we put benefits around health and well-being and the related services around that and coordinate the care. we do not activity-based programs in the united states. we are the largest provider of expatriate solutions outside of the united states. obamacare is known for the public exchanges not a large portion of our business. having option algae there with 3% of our revenue. -- option aality. >> it will not affect you. >> think about i have 200,000 of

my 14 million customers tied to what you are referencing. we are losing maybe 10-15 cents per share in 2015. more broadly to your comment the changing regulatory landscape to provide the right level of coverage for individuals and the right level of affordability, that is the main thing. we have been nick successful with our employers. specific to your point the removal of those exchanges subsidies would not be a disruptor to us in 2015. >> i am reading e-mails from my husband. i am an anthem insurance user. our social security numbers -- i'm worried about this. what are you doing to protect yourself? >>'s overall cyber security topic is across multiple

industries. we take the protection of consumer information and consumer data as a number one priority. we have multiple layers of protection, multiple layers of diagnostic services built into our business. we have taken the steps to hire professional hacking firms to come in and seek to hack us to see whether there are soft spots and commit to an ever present innovation process around that. >> no ceo will come out and say i'm not prepared for a hacking scandal. everyone is trying to take the kind of steps you are taking. the hackers seem to be 10 steps ahead of a lot of these companies. how much revenue will you have to diapered for tackling these issues? -- by ber fordivert for tackling these issues? >> that is job one.

having the right governance and control structure is required. whether you look at the banking industry, the retail industry or our industry, there are threats that are ever present any portion of our investment will have to be expended in that area. -- and a portion of our investment. we will continue to do so. this is an ever present innovation curve we will have to drive to make sure we have the protections in place for the benefit of our customers. >> thank you so much. cigna ceo david cordani. >> we have some breaking news on dupont and its fight with activist investors. >> dupont has not yet resumed for trading. it was halted from trading pending the news announcement. it is changing its partnership. two people are leaving and it is replacing them with edward green

and james. the vector vest investor -- activist investor has nominated his own candidates. they found one of the nominees it would consider for the board and offered to add that nominee if they withdrew the whole list. they refused any kind of proposal about nelson peltz. we have a bit of a standoff here and do dupont has rejected the nominees. the fight is not exactly over yet. we are not seeing trading resume yet. it was up for a fourth straight day. that has not changed at. >> when we return, a lot of traders, this is the pit. the end of an era. ♪

>> you want to update you on oil prices. nymex crude recouping half of yesterday's losses. dropping 8.7% yesterday. the worst day since november 28 when opec made its decision not to change any production quotas and let the market dictate which wait while prices will go. we have seen oil prices decline since then. what we had yesterday was bigger than expected increase in u.s. supplies which led to a renewed selloff in oil prices. an indication of the volatility we will likely see where the remainder of this month -- for the remainder of this month. in the equity markets, seeing energy stocks come back a little bit.

>> i still say rallies -- is the end of an era for commodity traders. closing most of its -- so sad. just 1% of the cme's orders. four years, i would go down and talk to my oil and gold guys and we would hang out and talk shop. i will miss these guys. >> pretty sad and cold down there. >> four years, i believed in the easter bunny and santa claus. if the trading is not going on down there, it's a waste of time. >> part of the idea is the group mentality helps you work.

imagine if you had to work alone at home every day. who would you talk to? nobody. >> i'm just saying times of change. we talk about the new york stock exchange all the time. one of the reasons the companies love to bring their deals to market there is this new york iconic landmark, true american place. when we are talking nuts and bolts of trading businesses, less and less are happening on floors with a human touch. >> i just know i got my commodities trading from these guys. that's where i learned everything about these fundamentals. >> every single time i set foot on the new york stock exchange floor, i'm overcome with pride and excitement. the fever of capitalism running through my veins. at the end of the day there is a much smaller percentage of

people actually engaging in trading activity. it is a tv set. >> you will still have options pits but it will be pretty slim pickings. >> wait for it -- no futures guys for those exchanges. in the past. >> be sure to catch the cma president -- cme president later today. >> we will be back in just a moment. you are watching "market makers ." when we return, networking takes on a whole new meaning in hollywood. we will be speaking to ben silverman about why he takes his projects to streaming networks instead of broadcast or cable. ♪

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>> "live from bloomberg world headquarters in new york, this is "market makers with erick shaztker and stephanie ruhle." >> the companies that are fighting for your risk -- that bit was a pioneer and apple smart watches about to come out and out under armour has bought two major fitness apps. >> there's no hiding those tweets anymore. twitter has reached a deal with google to make tweets more searchable online. >> the shift to streaming -- why more hollywood producers are taking their tv shows to netflix and amazon. we will speak with the entertainment entrepreneur, pennsylvania and.

-- ben silverman. >> i'm out steel in for erik schatzker. what you watch on netflix? >> "orange is the new black." >> season four of "friends." >> friends with jennifer aniston? >> that's old. >> you're lucky there is another hour left of the show because i'm ready to push you off it. >> what is wrong with "friends?" >> "orange is the new black is a whole new level. >> let's start with the top business stories of the morning. pfizer is beefing up its roster of generic medicine. they have agreed to by the egg's provider of injectable drugs for $17 billion. pfizer is paying $90 a share. radioshack may be just hours away from filing bankruptcy.

according to people with knowledge of the talks radioshack would sell leases on as many as 2000 stores to sprint and its bigger shareholders standard general. the rest of the chains 4000 stores would be closed. you've never gotten a hotel bill like the one expedia got to stop they could omar than $800 million in tax payments for tax things. hawaii and scores of governments say they are after the money. expedia has offered -- has said tax apply to the companies that own the hotels and not websites that book the rooms will stop >> it's easy to figure out under armour's exist competitor, but who is their dumbest rival? >> we are not going to compete with our dumbest competitor. they will chase the old model and we've got good competitors

but we also think things are rational. >> but is a deed is your dumbest competitor? >> specifically, i don't mind you quoting me. i don't like them. i don't like the other guys ease her -- i don't like the other guys either, but that is my job. >> under armour is making a push into the fitness tracking market. they spent $560 million to buy two apps. what do you think of the fact that the founder of under armour comes out there and basically calls a deed is dumb? >> i guess you have to hate these guys. if you are in a business that competitive and you started a t-shirt company in your granny's basement, you've got to be hard-core. >> adidas has had a lot of problems. their management has not been on target and they have not been able to execute in the same capacity as nike or under armour. >> i certainly would not say

that i hate our competition. >> but we have a tv show. >> i don't think we have any. that was the worst high-five. just like chris christie. there's nothing worse than a bad high-five. we have an amazing guest host for the hour, the managing partner at softek one of the most established venture firms in the valley. they've invested in startups like the bleacher report, august, about me and event right. you were very bullish on wearables. your biggest investment is fit debt and i'm questioning -- speaking to the under armour founder, what do you think of this guy? he makes shirts and shoes and dropped $560 million to get into this game to build wearables. mistake or genius? >> it is all about connected

vices and connected wearables. it's about aggregating that in doing something interesting so you can shell -- you can sell their shirts and the rating. it's quite a bit of change when you think about it for two apps. >> what gives you the confidence it will translate into selling shirts and shoes? it seems like a lot of money for apps that don't make any. >> it is a lot of money, but they want to go into the game and fit bit is clearly the market leader. data last quarter said 66% of the trackers sold in the u.s. were fit bets -- fit bits. out of the four trackers in the u.s., three are fit bit.

clearly under armour was to play in that market. >> let's talk about valuations. when you saw those numbers, $560 million total, is that the right price? >> it is a buyers market. >> it's a buyers market or sellers market? >> in a sense that to convince those investors and indicative's it was worth being taken out -- investors and executives it was worth being taken out. >> how do you tackle the retention rate in this industry? stephanie says she has 17 devices in her wearables graveyard. so you pay $500 million or $600 million, but why are people going to keep using it? >> it is about hooking people up with key data. i am wearing my fit bit, looking at my number of steps, not only because i'm an investor, but i want to be fit. if you can get people to check

those data or get them to share them with their friends and run a contest to see who's going to work out the most. >> if you like that about fit bit, are you -- do you wish fit bit did the deal and set of under armour? >> no because i think fit bit has a lot of organic retention if they want to get into other types of services. i don't know whether it would have been that price. it seems a little steep to me. >> qc -- you seem to think the price is little high. >> it is a sellers market. >> where do you want to see fit bit's strategy going? what's the best route? >> trying to figure out what are the holes in the product strategy they have to harbor --

when you look at the family of devices we have, we have the enterprise will we have the surge now which is a watch focused on sports. it is a pretty rich product line we are going to see how that sells and what also need to offer to have a more complete lineup. >> does that mean acquisitions might be there? >> so far, the company has developed organically. i don't think we have found anything interesting to us. >> what is interesting to you? >> as an investor? i spend a lot of time in new platform and drones. we look at augmented reality and do a lot of very boring and unsexy service investments. >> what is your goal question

mark do you want to see fit big o public? >> the goal is to look at founders, while exceptional in a market that could sustain a company, it takes several years. for us, it is can we get to 10, 50, $100 million in revenue? once you are there, you are a big company. from there on, you don't inc. about the potential outcome. one of the things i learned when i started as a vc 10 years ago is good things happen to good companies. build a good company and the exit or outcome will take care of itself. >> good things happen to good companies but you have to have a lot of strategic luck. >> bs. the stars have to align and i invested in fit bit in 2008 when they had a big block of plastic connected to the --

>> i could not understand what he said. but almond or? -- pedometer? >> yes the whole thing is you can build the next generation of market leaders. collective good things happen to good companies, why do we look at companies like uber who can't get out of their own way. i believe it's a good idea in terms of customer usage, it's really well executed in the world seems like they are out to get uber. if it's not the media, it's the regulators, if it's not the regulators it is the taxi unions. >> it's more than looking out

window -- looking at when will ipo. it's interesting to see how their competitor l,yft is well beloved by their consumers and -- >> why? is it just the ethers of the management? >> i think it's an approach would have been more aggressive and they have a winner takes all approach. >> they being uber. and lyft is more open. >> the pink mustache -- i don't know if lyft is dumb. whether they figure out how to become more popular amongst the rest of the ecosystem. >> we will be back. we have a lot more to cover.

when we return, twitter has come up with a way to make people see more tweets. the question is will this attract more advertisers that will bring dollars in the door? >> he brought you hit like "jane the version" but now ben silverman is more likely to bring his shows to streaming. we will talk to him in a moment stop -- in a moment. ♪

>> now for some top headlines around the world at this hour -- neither side appears to have budged in talks between greece and germany on the bailout. greece's new anti-austerity government wants the terms of the deal to be relaxed. the german finance minister said we agreed to disagree. his greek counterpart replied we did not even agreed to do that. the plunging wrubel asman rising prices in russia. russian consumer prices rose 15%

in january from one year earlier, the highest rate in almost seven years. it was worse than economists were cast. the 15 survivors of the trans-asia crash in taipei were seated in the rear of the plane. that's generally considered the safest zone in case of a crash. 31 people were killed and 12 people are missing. highlights had radioed that one engine quit working. >> soon, your tweets will be showing up in google searches. twitter has inked a deal with google. this is the latest attempt to getting tweets seen by nonusers, but is it going to work? our "bloomberg west" editor at large, cory johnson joins us as well as our guest for the hour jeff clavier. who wins more with this? google wants people to keep searching on google.

>> twitter needs google more than google meet twitter. there's a lot of information in tweets and accessing that information is a key part of clue -- of google's global goal. twitter could greatly benefit from this. the thing they have figured out about the problem with twitter is that lots of people are not on twitter. most people don't want to be on twitter and they can't seem to grow the user base. the growth of the user base has continued to slow and everything they have tried has not worked. that is a metric we have evaluated linkedin, facebook and twitter. twitter does not like this because it doesn't look good because they are a fraction of the size of linkedin and facebook. they have to get tweets seen by people not on twitter and getting a better search result was google is key for that. >> your handle for twitter is at jeff.

i have to guess you are one of the first people on twitter. >> i think corey is completely right -- cory is completely right. the data is timely, relevant and popular -- >> why does google need to have the data? >> google is to show relevant data but also timely data and that is what you get with tweets. the fact that you have a tweet that has been retweeted thousands of times shows the popularity of that tweet and google was to show that as well so i think it is twitter's advantage to be in the google search results but it's also good for google. >> i think jeff is right him -- jeff is right. facebook has excelled at contextualizing the experience.

they know who your friends are and they know it you are thinking and i advertise to that for that reason, they are in a better place to get a higher cpm than google is. twitter knows what you're doing right that minute. they know the people you are following at that instant in ways google does not exactly in terms of search results. this will help google have more data and it poses a risk to google or twitter on some level because now they're secret sauce will be more exposed to the data geniuses at google. >> is it significant twitter came out with us today on the day when it reports numbers? sort of a show me, don't tell me? >> i will attribute it to great reporting by our very own sarah frier. but one does worry when a company comes out with something that looks like really good news just before they report earnings and maybe the earnings results

would overshadow the news. more times than not, that can be the case. >> it looks like it is dick costolo saying he is going to do that. >> i will see you later. >> when we return, the e-commerce dog fight it comes to delivering with drones. alibaba is beating amazon. you are watching "market makers" right here on bloomberg television. ♪

>> alibaba is giving amazon a is

cut. they will begin using drones to deliver tea in china. jeff bezos has been laying out his vision of drones and delivery for years but the company has yet to push through regulatory hurdles. so what will the drone delivery market look like? let ask our guest host of the hour, jeff clavier. you actually invest in drones. what is your company do and why? >> drone the is based in san francisco. it's the first flat -- flight control system for drones. it's a piece of software that allows you, say you are a farmer in the midwest sending his drone over a cornfield, he's getting instantly a map of the field to see were he can use pesticides and fertilizers. by using drones, he can cut used by 40% and increased yield up to 15%.

what drone deploy does is build a piece of software that automatically sends the drones and flies around the field, gets the images and sends them to your ipod or computer. >> it sounds like you think the future of drones is corporate rather than consumer. >> there are two markets which are both enormous. one is the consumer market, those small drones which are treat -- which are cheap for entertainment. but you have a lot of mining, agriculture and exploration but amazon is not trying. it's the faa which has not offered a set of regulations. >> why do you have any confidence the faa will get on board? >> as the company like amazon level up the potential market

and push through regulations and lobbying, at some point the faa will have a set of regulations with a specific usage of drones. >> they are going to spend all of those lobbying dollars to make it happen and you are going to slip in behind? >> you can already use a drone to take a picture of the property. there are some specific cases approved by the faa and we will see that develop. we need something like drone deploy to get the drones to repel from airplanes. the big issue is if your drone flies close to an airport, there's a risk to run into an airplane. if you have the right piece of software, you can repel from the airplane fast. >> what industries will drones

change the most? >> agriculture will be the first. >> we've got more to cover. when we return, do you need an excuse to binge watch? ben silverman is the guy to give it to. ♪

>> "live from bloomberg world headquarters in new york, this is "market makers with erick shaztker and stephanie ruhle." >> welcome back. >> i'm alix steel in for erik schatzker. european markets are closing for the day. its head over to the breaking news desk to check in with scarlet fu. what was the damage today? >> there's some pretty muted action that belies the volatility we've seen in greek banks. the news with the dax is that it did not close at a record high. it dropped after the ecb changed the rules, leading the way in

athens as they have been doing. even as the stocks increase, the u.s. listed exchange traded fund that tracks greek stocks is rising, almost up 6%. the single country etf's can act like a price discovery vehicle. we will see how that goes. we know overall greek bonds have been falling after the election over uncertainties regarding debt negotiations with creditors and the talk from new greek leadership. when price goes down, yield goes up. this is a chart of the 10 year yield. yields have moved higher in the last couple of weeks of last year but they are nothing like we saw in 2012.

even though debt yields have been rising, this is no 2012 scenario. >> thank you so much, scarlet. when we return the shift to streaming and why hollywood producers are taking more of their shows to netflix and amazon and away from the big boys. we will speak with entertainment superstar, ben silverman. ♪

>> our next guest is one of the most prolific producers in hollywood. he brought us "the office,: and ran nbc entertainment and produces shows like "jane the virgin" on the cw. but lately he's show that she's selling more shows to streaming companies like netflix and a show based on the life of casanova to amazon.

welcome back. what is up? suddenly amazon and netflix? you are turning your back on your roots? >> they have arrived in town. great to see you stephanie, by the way. they arrived in town very aggressively and upended the model. netflix is doing straight to series which is a huge differentiator from the other networks who just by a pilot test a pilot and go to series. both "marco polo" and "flaked" or green led straight to series and is a huge benefit. that's why we attracted will arnett to be the star. it's also an idea of his, and i think the reason they grabbed a lot of top-tier talent. i ask going to hurt your relationship with the networks? all of this disruption has to be rocking them. you are an old school guy who has known the network for years.

hollywood can't be happy with you. >> at this moment, they are all interdependent. netflix and amazon are the new backend buyers of the networks products. meaning "the office" is on netflix the same way it aired on nbc. there's a lot of partnership between these companies but the biggest one is the huge deal netflix made with disney specifically the marvel titles they have green lit to series, including daredevil. all of these companies are fre nemies. they are working closely on some projects and completing -- and competing to the nail on others. >> if it goes straight to series coming have a lot more freedom and how you do it? >> you do and the vision for the series gets to be laid out early on.

this afternoon, we will be talking through with our partners on netflix about the series arc and we are not just going in around the single pilot but we are able to take the liberty and luxury to push out the storytelling and allow the characters to flourish and develop throughout a series as opposed to eight episodic concepts and i think people are responding to that storytelling. the shows don't always have a beginning middle and and like those traditional dramas on nbc. it's not like "law and order." it's not a full meal in one sitting. it's how they played together. one of the things about when you watch netflix, when they put on the shows, you become your own lead-in. it starts clicking on the upper

right-hand corner -- 10 seconds to the next episode and you are very likely to keep watching. it's the best lead-in for the show. >> how does the fact people are binging on content and their social media implications change the way you design those shows? >> binge watching means we are not just making a single episode . we have to make episodes that are connected together and make sure the people sitting down and watching are getting a season arc that is as powerful as the episodic arc because it's likely over the course of the week and will watch all 8, 10, or 12 episodes. there is no question it has impacted how we tell the story, not just the medium in which they are delivered but how they are presented to the audience. >> the fact that social media is a big part do you do anything

around cliffhangers or the is there something special that will help? >> social media has absolutely become an incredible marketing tool within the arsenals of netflix, turner's and cw. there's no question that social media policy amplification is something they are trying to create omentum around. it is a hard system to game because it's getting people to create a push around storytelling and the heat around the tv show. one of the series i am leading with and i think alix mention that she came from the theater world, you need to be thinking about quality today. the real differentiator before us how do you get on a broadcast that form as quickly as possible

and sampled as many audiences as you can get and hope that translates to a sale down market either to and off net cable channel or broadcast syndication? now i think it's about quality. that the audience slowly discovers it and it gets amplified through a platform like social media and do that qualitative edge, it becomes a hit. >> we saw that with "breaking bad" which found its legs with netflix. you think quality of content but you also need a quick delivery over the internet and no grains. there needs to be a clear picture. how does the net neutrality debate change the discussion? >> i'm a little conflicted around it because i felt originally it made a ton of sense as a storyteller and content creator to be pushing aggressively for it. now i am concerned google

apple, microsoft and yahoo! and facebook are the same thing as viacom disney, time warner. meaning that although we are aggressively pushing for equal access there are still five big companies at the front end. i'm concerned the same issues that have come through the vertical integration and have affected me as a content creator are going to happen in this new media landscape. >> you don't think anything is going to get resolved here? >> i think both sides will be lined up to all about the's will be lined up against each other. it's still going to be hard for the little guy. they assign the networks to the broadcast system.

the national broadcasting system got number for in the case of nbc or cvs. now you are looking at apple tv 's potential new product and netflix is number two. next to it may be showtime and then hbo and then the tennis channel. so there's going to be a reorganization through the digital delivery and web delivered television. but i still worry that big and mx will end up controlling the top-tier of the dial in his new players will be shut down. >> real quick, not counting your shows, what are you watching on netflix? i'm watching "friends" which i got totally locked on. >> you deserve to be mocked. [applause] >> no no, no.

>> you are paying for something that is free. i'm impressed. >> what are you watching? >> "peaky blinders." when of my favorite things about netflix is finding the niches. they have interesting shows from outside america and brought them to the into my living room. "peaky blinders." and i love the documentaries. i use it for a sense of discovery and they have been great as well as their algorithms because they keep pitching the new shows. >> and there's nothing to discover in ross and rachel's relationship? [laughter] >> again. >> i have been enjoying watching "marco polo."

>> always great having you on. congratulations on "jane the version." our friend, ben silverman. >> stay with us because jeff will be back and it's time to play -- ♪

>> now for some top headlines around the world at this hour. prosecutors are investigating whether switzerland's largest banks helped americans eight taxes. the issue is whether ubs used securities that let owners hide their identities. six years, ubs settled another tax evasion case with u.s. authorities. germany lost chancellor angela merkel and the president of france are on a mission to

moscow. they will meet tomorrow with vladimir putin over the fighting in ukraine. verse he will stop in kiev where secretary of state john kerry is meeting with ukrainian officials. >> social media users in china are slamming argentina's president who is on a visit to aging. she published a twitter post mocking the chinese accent. she said it was a sign of affection. i had not read the tweet. i read it and it is not good. >> as much as i think give people a moment, give them a beat -- i'm not sure how to give them a beat. ask you cannot say i'm sorry. you have to type it and it's not the same. it's time for some final thoughts with our guess -- our guest host, jeff clavier. we are going to say word and you say the first thing that comes to mind. apple tv. >> so bad.

>> so bad? >> i'm so disappointed. it barely works. we can barely connector computers to them. >> fascinating. marissa mayer? >> poor girl. >> really? >> it's not easy. she tried hard. >> we are not judging. why? >> it's not an easy job and people don't realize how hard it is and how hard she has been trying. >> do you think she's doing a good job? >> as a shareholder in yahoo!, she has doubled the stock she joined. >> so she's doing a good job? >> at least as a shareholder. >> is she doing a good job managing the alibaba stake were doing a good job managing yahoo! ? >> i would not want to do that job because it's difficult to turn yahoo! around. what has been mentioned is the

alibaba assets and then potentially be acquired, that should be the best outcome. >> uber? >> i wish i had invested. i actually passed on it. i'm that idiot. >> vaccines? >> important. >> artificial intelligence? >> i love it and i hate it. i love it because it is really powerful and exciting in this is an area we are looking into, but the skynet concept is pre-scary. >> fcc chief tom wheeler? >> net neutrality is important please. thank you. >> smart watch? >> it will be a success but not a giant success as everyone hopes for. >> we've got to go. women in the valley? >> yea -- yay.

>> unfortunately, we have two leave it there. >> you said we have to go, so i tried to find one word. it's very important. we are trying to help them. >> we have to leave it. jeff clavier -- managing partner at softek. ♪

>> that is going to be it for "market makers" today. jeff clavier thank you for

joining us. jeff thinks he is our best guest host, so you may need to come back on and see how we do. >> i totally beat him on a french accent. >> our guest anchor, alix steel thank you for joining us. erik is not going to be back tomorrow. i don't who is going to accept sitting here for two hours. tomorrow, you can yet -- you better get ready to rock because the grammys are this saturday. we will see how much the statues are worth to the winners and to the labels, the ones who make the money. it is 56 after the hour and bloomberg is taking you on the markets. scarlet fu has more. fax you -- >> u.s. stocks recovery after the ecb decision to change funding on greek banks yesterday. the dow notching his fourth

straight gain after its biggest loss since late november when opec decided not to cut production quotas. joining me is the strategist with keen on the market.com. i mentioned oil prices and that's been a big driver along with earnings and you also have m&a. is that providing support for the market right now? >> i think it is. we have macro data coming out in the form of a jobs number, but that could be a nonevent between the price of oil swinging wildly as it has been doing. news out of europe across a broad range of sectors reporting over the past two weeks. it seems the markets will be trapped in these ranges that we are nearly top and of that range. i think we might be able to test the highs again.

>> for the vix, it means i would not want to be getting long volatility or short volatility. i can look at the cheaper vix and look at it as an opportunity to buy protections if i was an investor concerned about some of these events. >> michael kors trading very actively. down after north american sales miss estimates. is there a pile on against michael coors right now? >> we see a little bit of bullish orders, i don't agree with that trade. they missed on sales and reported narrower margins than expected in the general odd as they will have to discount to drive sales. these luxury retailers are

something i want to stay away from. >> to see of options and other retailers? >> not necessarily. i think a lot of traders are confused. we expected traders to do well with all of these -- we expected retailers to do well with all of the extra cash because of cheaper gas prices but we are not seeing that. >> you've got a trade for us on activision/blizzard which will be reporting results after the closing bell. what extent is your play on today's results? >> my trade only goes out through tomorrow's expo -- expiration. when i look back, the stock is up six of the past eight quarters with an average move of 6% to the upside. i want to look at the call spread for $.30. i can make $70 on $30 worth of

risk so better than two to one on my money. >> it has not been above 23 since september. it has been stuck in a range between 18 and 21. >> i think this catalyst event could rake out higher. it could get there if they come in with a solid quarter. >> right now, activision is higher after its results. thank you so much. "money clip" is up next. ♪

>> welcome to "money clip was quote where we bring together the best years and interviews. i'm pimm fox. here's the rundown. diplomacy in action -- european officials and u.s. secretary of state john kerry make a push for peace in ukraine. europe and greece remain at loggerheads. in company, we get physical -- under armour buys into the fitness app game and concern about the measles -- why the virus outbreak could get worse before it gets better. wall street is eager for sc --e