>> from bloomberg world headquarters in new york, i am mark crumpton, this is "bottom line." to our viewers here in the united states and those of us joining around the world welcome, we have full coverage of the stocks and stories making headlines on this tuesday. shelby holliday is in long beach , california, covering the dockworkers dispute in los angeles. peter cook outlines the next move from the white house after a texas judge temporarily blocks

president obama's immigration order. we begin in brussels, where hans nichols has new development in the greek bailout crisis. good evening. >> good afternoon to you. according to a person familiar with the matter, greece is planning to ask for an extension of its bailout loan program for six months. remember, the deadline is that they would leave the program at the end of this month. they have still not agreed to the conditions, which is key and important, the finance minister has made it clear that the decision is for greece. >> greece, represented by its democratic elected government has to decide what it wants. i cannot extend something that the country does not want. >> that was from earlier this afternoon when talks basically fell apart. they collapse last night and there is no effort to put them back on track.

earlier today he told the hardline and he does appear to have all of his finance ministers united behind him. the 18 euro area finance ministers say that greece needs to abide by its reform package if they want to stay in the program. crucially if they want to keep access open the funds. >> if there is an agreement, what happens next? >> you would have to hammer out the details and then they would have to go to all the individual national legislators. that is why friday really is the dropdead deadline. they would have to have all the agreements on friday, it would have to be approved. germany, for example police said that it needed to get done on the 27th or 26. remember, if any one of those national legislators in -- object, greece would be left out in the cold and without a

bailout protection. mark? mark: hans nichols, reporting for us this afternoon from brussels. stocks are rising in the s&p 500 index to a record on speculation of a greek bailout extension. the s&p 500 rose above 2100 for the first time and it is right now at 2100. the chairman and chief executive officer at cumberland, plus the chief monetary economist, are with us. welcome, gentlemen. hans was just reporting from brussels on the latest in the developments that greece. the german finance minister says that it is time for greece to ask for a bailout extension and until that happens eurozone finance ministers will not meet to discuss help for greece. what is the next move? >> this is another chapter of pretend and extend. there has to be some resolution

of a debt that is too large for this population. and how to do it and reach it with a frontage that does not stop economic growth. it is an impossible task. they tried to reach an agreement. they came to the 11th hour and 59th minute for they reached it. we are going to see it all over again. >> can this be done without the backing from germany? >> the germans are alternately going to have to step up. they do not want to see the greek problem that they are facing and it is a game of chicken at this point. mark: a political game of chicken? is this a showdown between the new greek government and angela merkel? >> it is beginning to look that way. >> i would agree. you have an issue here in that you have a political process in greece where you cannot take the austerity and they have elected a government on that basis and

that government can negotiate. a great deal of the recycled funds are to repay the existing debt already. you might argue that greece has stronger negotiating power now because they know that this is not so much new money as recycling money. >> the finance minister of malta says exactly that the dispute is political. or is it about the eurozone simply wanting greece to stick to the terms of the original bailout that they agreed to regardless of the fact that there is a new government in place and that that government has for all intents and purposes a mandate from its people? >> i think so. how do you get people to pay when they are unable to pay? you can have all the terms and conditions that you want and the fact is that if you cannot pay and do not have the cash you have to either advance more money in turn things around or they do not pay you. >> and if they do not pay, they must default? >> it is the old mine.

give the old man $100 in you are his slave and the other way around. mark: does the eurozone want to reach an agreement with greece? >> i have to say -- >> i have to say that there is chatter that they do not and that they are throwing their hands up and saying -- how often do we have to keep going through this? >> suppose that greece launches hyperinflation, all the things that happen when the society goes down and the banking system struggles and the other 18 of them say -- i have got to change my behavior. the lid just went on the cookie jar. maybe that could make the eurozone, the remaining eurozone stronger. mark: what about the ecb and quantitative easing? it could solve the structural problems. >> i don't think that it solves structural problems at all.

they are structural and fiscal. the ecb printing money is not going to deal with those issues. that's another dimension of kicking the can down the road. mark: does this help them return to solvency? >> one dollar trillion is a large sum. the fact is i don't know if it does much for greece. it means a lot for our markets. when you suppress these interest rates like this you suppress interest rates worldwide. here is the u.s. paying a country at a 2% yield? the highest in the g7, the strongest currency? banks and the other part of the world and in the u.s. are going to come to the equality. mark: you talked about those who wanted to audit the u.s. federal reserve and you said "perhaps they should start auditing the u.s. senate where the ratio to

blustering to action confirms we are suffering a national political intelligence deficit of alarming proportions." i told you that when i saw you earlier, you should not hold that back. tell us what you really feel. >> i love it when you talk dirty. [laughter] this business of auditing the fed is a political sham. there is nothing to audit. are you going to count the treasury bills and finding are not there? their books are transparent. if they want to debate policy what should the interest rate week on how it should be implemented and what the reserves should be, that is legitimate. auditing the fed is a political hype machine. mark: we just received word that one of the fed presidents says that he thinks that they should drop the word patient at the march fomc meeting. is it that time to drop that language?

>> they want flexibility. they want the option to make decisions as the data flows in. at this point cutting the words or not cutting the words it really is more directed towards observing the option and i do not think that it tells us much about the timing of the policy move and when it will take place. >> we think that anytime towards 2016. there is no way to know. mark: david, gentlemen, it is always a privilege to have you on the broadcast. >> thank you. mark: there is a new twist in the executive action over immigration. a federal judge in texas has temporarily blocked the orders for 5 million undocumented immigrants. peter cook has more on the decision and its implications. peter, how big a blow is this to the obama administration?

or is it? : -- peter: those who support the president see it as a temporary setback. but they are confident in their legal position. outlined in a decision from judge andrew cannon, it blocks the administration from teasing deportation for as many as 5 million undocumented immigrants. 26 states that are left challenge the action, saying the federal government was abdicating its responsibilities. a george w. bush appointee wrote in his ruling here that the job of the dhs was to enforce the job past but no statute gives them the discretion that they are trying to exercise here, so his order bars the administration from carrying out the executive action until he issues a final ruling on the lawsuit. the white house responded this morning by saying that the district court decision wrongly

prevents commonsense policies from taking effect and the department of justice is indicating that they will appeal the decision. eric holder in washington says that he thinks this is an interim decision by a single federal judge in that this will be a longer process. supporters also pointed out that other judges ruled in the president's favor in december they call this a common injunction to be lifted on appeal, but right now the judge in texas? is decision rules. mark: what does this do to the fight over homeland security funding? peter: it could potentially ease the fight, but that is not clear that it will happen. republicans said they would not fund the department unless those actions are rolled back. they could put an end to the standoff over funding and look to the courts for relief but so far the public reaction has been the opposite their position has been to dig in their heels even more.

mark: all right, peter cook thank you so much. we will head out to the west coast of the united states and tell you why cargo ships are sitting idle with millions of dollars in goods sitting on board. my colleague will give us the details when "bottom line" continues in just a moment. ♪

mark: welcome back, it is 50 minutes past the hour. the ukrainian cease-fire is being ignored in one part of the country. pro-russian rebels have claimed control of the key railroad junction where thousands of ukrainian troops are holed up. ukrainian say that 300 government troops have surrendered. it was just a few days ago that all sides agreed to pull back heavy weapons from the front lines. the leader of egypt is calling on the united nations to get rid of those -- get rid of islamic street -- islamic extremists -- it's a lot -- islamic extremists in libya.

this was after they killed over two dozen coptic egyptian christians. they said the next step was creating a u.n. backed coalition. at least 20 were killed in the capital of haiti after a man on top of a carnival float was electrocuted, setting off a panic. the accident occurred as thousands filled the streets of downtown port-au-prince. that is the latest world news we have another update coming up in half an hour. the president's top labor official is in california to try to settle a heated labor dispute that has all but shut down west coast ports and halted the movement of billions of dollars in cargo. shelby holliday is live in long beach, where operations came to a standstill over the weekend. what are you seeing on the ground out there? shelby: you can see this huge ship behind me and we see dozens of these babies sitting idle,

waiting to be loaded and unloaded. to get a better look at just how much stuff has been suspended at sea we went out on the water yesterday and the containers look like legos from far away but when you get up close they are massive. 140 foot container can hold 130,000 pieces of clothing, 60,000 toys, or 1500 auto-parts. these ships are holding thousands and thousands of containers. to give you an idea of how much stuff is out there, if you take a look at the top imports you have got furniture and auto-parts apparel electronics, footwear, acute ripple effect across the u.s. economy impacting a number of industries. >> speaking of the ripple effects, what is the economic toll like? >> the national retail federation says a west coast port shutdown would cost $2

billion per day. automakers haven't hit pretty hard. honda just announced they were cutting u.s. output because they could not get the present needs to the manufactured cars. anyone manufacturing electronics is facing an electronics shortage. there are all kinds of different industries impacted and if you take a look at the bigger pictures the 29 ports from seattle down to san diego handles 40% of the container cargo in the united states, accounting for 12 .5% of gdp. >> what are you hearing from the people on the ground? is there any talk of a possible resolution anytime soon? >> there is, but there has been talk about this for months now. i spoke to a union representative and someone representing the shipping companies, who say that an agreement is close. a professor who studies unions says he thinks that the increased political pressure is going to make a settlement days

away instead of weeks. the people are certainly hopeful that they will reach a deal in the near future. mark: shelby holliday, joining us live, thank you. coming up, hackers are targeting your medical records and we will tell you how you can protect yourself. ♪

market: welcome back. hackers are increasingly going after your medical records. the attack this month on anthem is one of the biggest examples. shannon why do hackers want medical information? shannon: it becomes very valuable on the black market. a lot of people think about credit card numbers and social security numbers but your

medical information is actually 10 times more valuable. here are a few things that they can do with it. medical identity theft. they can take your insurance information and sell it to someone without insurance, sell it to a hospital and pretend they are you. sham companies can start up and do insurance fraud. they get your information and then bill medicare for a wheelchair that you never bought, for example. then there is the secret world of state-sponsored corporate air espionage. they may be looking for particular information on a person's health. maybe a politician, trying to get health information that could somehow be used against you for black mile. -- blackmail. mark: how widespread is this? shannon: hackers used to go after banks, businesses retailers, targeting all of that.

we had 300 health-care companies hacked in 2014. you can see the break -- the breakdown in the sector. we had 300 attacks last year which was just 16 in 2000 eight just a few years earlier. it really has shot up. 41 million people had exposed data in 2008. mark: the people at home have got to be shaking their heads. im to feed feel away from you, i cannot believe what i am hearing. -- i am two feet away from you and i cannot believe i am hearing. now with mobile devices and people doing a lot of their stuff on their mobile device it seems that this is just another entry point for people to get this information. shannon: i spoke to a security analyst who works for different companies and he said if you can get to it on a phone, it can be hacked, and he said that health care is just find other

industries. banks and retailers have been worried about this for a while because your credit cards have been so sought after. health-care companies have not been targeted by these sophisticated and in some cases even state-sponsored hackers. mark: this health-care information is even moving online, and medical devices are another honorable area. what is being done about that? shannon: like a pacemaker someone could remotely hack into a pacemaker. let's say you are an important person, like dick cheney who had a pacemaker at one point they could hack into it. security experts are trying to stay one step ahead of the hackers. that is the game here. it really is just a race, again to see who gets there first. mark: what can people do to protect their medical information? shannon: looking the statement

that you get in your insurance quarterly or at the end of every month -- look at the statement that you get in your insurance quarterly or at the end of every month. take a look at that. most people throw it out. if you see something fishy, call right away. if you can catch the theft early, you can put a stop to it. if it goes on for years and years, it will take you years and years to resolve it. you will have to get a lawyer and it will cost potentially thousands of dollars. mark: why does it seem like they are behind the ball on this? it seems like that should be the template when they create this stuff. why now, after the horses is out of the barn? shannon: hackers have outgrown those updates, they have advanced and we have not. mark: shannon, thank you so much. coming up, we will tell you how lego rebuild its business one brick at a time. -- rebuilt its business one

brick at a time. ♪

mark: look a mac to the second half-hour of "bottom line," on bloomberg television -- welcome back to the second half of "bottom line," on bloomberg television. let's check the price of crude oil today. up one and one third percent, trading at 5348. a shakeup at the starwood hotels. the ceo has stepped down by mutual agreement. starwood's board says that now is the time to speed up.

burger king posted again in the first quarter. burger king purchased the canadian coffee and donuts chain, tim hortons. sales at burger king were up 3%, tim hortons posted a 4% gain. the government is opening the skies to the widespread use of drones. numeral's from the faa would permit small businesses to use the unmanned aircraft. flights would not be allowed out of sight of the operator. drones could not be used for pizza deliveries or delivering other products, like orders from amazon. that is a look at the top stories this hour. it has not often child's play for lego, the danish toymaker. it saw its value tank between 2003 into thousand seven. it has rebounded since, overtaking even mattel in the first half of last year. the company's president is here with me in the studio.

welcome to "bottom line." >> thank you for having me. mark: lego group, not far from bankruptcy at one point. last month you told a group "we became a company that did not listen to our customers." is that not rule number one in business? what happened? >> per team much so. we had too many years of consecutive success prior to one decade ago and we had become too introvert in ignoring the needs of our customers. market: what did the company learn from its mistakes? soren: exactly what we learned over the last 10 years, it came from really understanding the names of children, making sure that we had products relevant to any ages. mark: did you have focus groups of kids? soren: all the time.

but we were filtering it in a different way than we used to. we were really listening with a different year. -- different ear. mark: to make money, you had to spend money. which areas did you target? soren: we spent a lot of money on the development side. we spent a lot of money with the retail partners to make sure that the execution of the brand, label, and line has become really interesting. mark: you are in an industry that is constantly evolving. what are you doing to keep up? where are you being challenged? soren: right now we are really being challenged and are enjoying the time, having fun. i think that the key to our success is constantly listening, constantly being in tune. how do we move into the digital space instead of trying to ignore it?

how do we go more into storytelling? mark: the lego friends, a aimed at girls. it has been growing 20% per year . why did it take so long to break this gender stereotype? soren: it really was more a question of listening predominantly to girls and figuring out what needs they have in the play process that might be different from a boy. we got some fascinating insights in terms of how they play more in smaller process steps, and the role-play needs to be a projected in between. as you said, as -- it has been a fantastic success for us. mark: are you surprised? soren: no. i am proud, we did our homework and, admittedly, we failed a few times and from every failure, we

brought a new example. mark: what did the girls tell you that they wanted? soren: a different building process. more small steps, the core gameplay is the same, but they wanted different excess reason to play with. it is very different now, but obviously getting there getting -- took very hard work. mark: you mentioned the digital age. how has that changed your approach to how toys are made and marketed? soren: it has definitely changed how it is marketed and is being played with. this space has been important for us ever since we introduced star wars lego games on the wii, xbox, and playstation, years box. -- years back. it enticed them to come back at the end of the day we are not a digital company, we are hands-on minds on company.

for figuring out how to allow children to interact seamlessly between those worlds was important. mark: what does it mean to you, personally, to see a child playing with legos? to see that create a process taking over? i see that with my own son, they make their own toys -- you are thinking engineer, architect. you see the wheels starting to turn. soren: most of us go to work every day with a mission. we believe in the importance of developing creativity. seeing that focused moment, it is immensely important to us. mark: fandango conducted a poll last year "the lego movie" was cited as the top omission.

soren: i am not an expert in hollywood. [laughter] mark: did you build your own lego oscar? soren: i think we could do that. it is as important to us as any award. mark: will there be a sequel? soren: in 2018. mark: nice. pleasure to meet you. thank you for your time. up next, the latin america report and a report on the biggest european phone carrier in latin america. "bottom line" continues in just a moment. ♪

mark: welcome back. time now for today's latin america report. the biggest european phone carrier in latin america released the value of its that is wayland assets and switched

to a lower exchange rate for 2014. telefonica calculates at 50 boulevards to the dollar in 2014, 20% lower than the 12 boulevards are dollar used last year -- 12 boulevalivars to the dollar use last year. still to come, what do danica patrick and patrick wilson having common? they are all helping derek jeter in the latest event. we will tell you more in a moment. ♪

mark: we are 45 minutes past the hour. bloomberg news has learned that greece is considering asking for a loan extension after accounts of talks is the greek bailout breaking down requesting the extension of the current bailout program. >> in the history of the european union, nothing good has ever come out of this. in the history of the union we proceed from crisis to crisis and this is how we prove it. i have no doubt that within the next few days any notion of an ultimatum is going to be withdrawn. mark: the greek government says

that the terms are too tough, they want the deal rewritten but time is running out, the current agreement expires at the end of the month. germany now says that there is a 50% chance that greece will leave the euro. the british inflation rate fell to its lowest rate on record last month. the reasons? the falling prices of gasoline and crude. auto sales in europe rose for the 12th straight month, and of the five largest markets, spain had the biggest increase. the biggest sellers were volkswagen and were sadie's. we will have -- mercedes. we will have another update in 30 minutes. what does a baseball legend do when his playing days are over? for derek jeter it is about giving fellow pros of way to express themselves. we spoke with the former yankee

captain about launching the players tribune and how it would be different from other social media platforms. >> i spent an entire career dealing with the media. let's be clear, the media has helped to shape my career, but i wanted to have a platform for athletes where they could speak directly to their fans in their own words in a first-person point of view, unfocused unbiased. i have spoken to athletes from all different sports. they are excited about it. betty: how involved are you going to be? eric -- derek: the looting network, aol, legendary pictures -- i have enjoyed being behind the scenes, meeting with strategic partners who will help us out. betty: are you involved in recruiting any of the players? derek: i would not call it

recruitment. i have talked to some of the players, but they want to do it. a lot of people think that players are one-dimensional that that is all that they do but we want to give them the tools to develop the concepts they want to share with the fans and i guess that is what excites me. eddie: it is a great article. i think about that and i say -- there is social media out there now. there is facebook, linkedin instagram, other avenues to say the same thing. why would they come to a player? derek: i don't have a twitter account what is it, 140, 160 characters? eddie: 140. -- betty: 140. eric: -- derek: athletes are

always going to have tools but we are going to give it to them to develop, produce, curate whatever they want. in this day and age, athletes like sharing anything with the world. it is fun for us. mark: that was derek jeter with my colleague betty liu. tonight on "charlie rose," david axelrod for the hour, a political strategist to lead the historic barack obama campaigns. his new book is called "believer." it reflects on his career working on over 150 political campaigns. david axelrod, tonight on "charlie rose." more on the greek bailout deadline, tricia ragan joins us with more. trish coleman clock is sick -- trish: the clock is ticking.

this weekend they were of course talking about the talks collapsing within hours. europe is trying to play the heavy here saying -- greece, this is what you need to do, stick to the original plan and if you do not you are on your own. they will not be able to make their pension payments if they are on their own. they could actually default on some of their loans to the imf. mark: trish, when [indiscernible] was running for prime minister he said the current greek bailout turns are draconian. that they were suffering under the weight of austerity, which germany has been trumpeting for the last several years. now the finance minister of germany said that they would consider extending some sort of bridge loan but that greece has to ask for it first.

they making them beg for this? trish: there is a lot of animosity right now. mark: very much so. trish: rightly so, you would feel like -- look, why should we have to support this population that is retiring early, not paying their taxes? why should we have to subsidize that? politically it is touchy and difficult for angela merkel to move it into what you needed to be. we learned a few hours ago that greece may in fact request a six month extension, as soon as tomorrow affectively keeping this big it going for another six months while trying to renegotiate this. of course, what is to renegotiate? specifically of germany is saying -- no, these are terms that you agreed to and you have to start making some hard decisions, as we have seen happen in other countries.

some of them have been rewarded with lower yields when it comes to the debt market. i think that it is definitely a challenging situation, but the big question on the minds of everyone is, mark -- does the european union really mean greece and does greece really mean that you? that is -- mean the eu? that is a question we will be tackling today on "street mark." -- street smart." we will be talking about protecting against hackers. every day it feels like we are talking about another hack attack. i don't know about you, but i am getting ready to turn in my credit cards and computer. mark: it seems like the hackers are at the heads of these companies, rather than the other way around. trish: definitely. mark: thank you so much.

stay with us, alix steel will have a check on the markets on the other side of this break. ♪

mark: we have the latest headlines at the top of the hour, streaming on your tablet and our website. that does it for this edition of "bottom line." thank you for joining us. "on the markets" is next. alix: 56 minutes past the hour,

bloomberg television is on the markets. the s&p is at a rest -- record high in the dow, the highest levels so far, the nasdaq pretty much unchanged. they closed at a 15 year high, with the test sector spider etf ok, up more than 3%. is it time to bail? they have received $650 million and outflow. not just this year not just the day today, but the whole year we have seen about $2.8 billion. what did you think about that? >> i did not think that we could make an adjustment on the flow from the etf.

apple alone is a $750 billion company. it is not enough to move the needle on the stock, but last year they had about 1.5 billion and outflow. in the s&p 500 rose about 15% on the rest of the market. it is more that the flow is a judgment on the popularity of the product. alix: i was going to ask -- how sticky is the money in these etf's? >> it changes every week, obviously. they are not necessarily addictive of what comes next. the big flows this year have been in the tracking energy and commodity. this year we will be making a bet on the back of that flow. last year it is up confirming

again. centered on the sector itself, people going out of etf's. alix: nevertheless, i was looking at the index of the tracks, and it has been the highest since 2010. are we on the expensive end of this? put that in perspective. >> it is a bit more expensive, compared to the overall market. , and it has been the highestthe thing that you have to look at indexes is that you have apple and you have the rest of the world. apple has been trading at a discount for whatever reason. people are just not popping value into an overvalued stock this might spectacular growth. looking at the average of the companies in the track, the p goes up to about 30 there. it is a little that hot -- higher.

apple is basically trading below market multiples now. a lot of these other companies in the tech sector are higher. alix: what about ibm? >> technology is the sector most exposed to overseas sales. that is a big concern for investors. alix: thank you so much for putting that into perspective. "street smart" is up next. ♪

>> we have 60 minutes ago. investors are relating greece may take a critical stop. and spyware reportedly installed in hard drives around the world. lots coming up for you. street smart up now. here is a look at