>> live from p or three in san francisco, welcome to bloomberg "west." stocks are down as we await the federal reserve policy statement. the fed is six 56 moving closer to moving interest rate and may drop the patient from the guided. janet yellen's news conference starting at two eastern on bloomberg tv. -- 2:00 he turned. gunmen stormed a museum in the capital of tunisia. having to keep overkill.

two of the attackers were killed in a shootout with police. at least to others remain at large. gunmen were entered -- were dressed as soldiers as they entered the museum. anti-austerity protesters took to the streets and burned cars and threw rocks. some of the governors had to be thrown in by helicopter. mario draghi about the protest. >> the ecb has become a focal point for those frustrated with the situation. our action has been aimed precisely a cushioning the shop suffered by the economy. as a central bank of the whole euro area, we must listen carefully to what the citizen are saying. cory: protesters are frustrated over high unemployment and a

failing economy. $5.6 million to greentree. yesterday we reported j.p. morgan chase was reported 45 billion. the ceo is under pressure from regulators to shrink the company. verizon the latest company to go after corn cutters. a mobile tv service could launch as early as june. the person familiar with the top says verizon has secured streaming rights and offering each of the four major broadcasters. now to the lead rhapsody making its music available to twitter users including 32 million songs . the first is extremely service that lets the -- that people listen to a full license library within twitter. anyone who opt to listen will

click on a link back to rhapsody. this is going to be a game changer for the music industry. the interim ceo joins us right now from austin, tex thias, which is a little better than rainy seattle area districts me as a big deal. the inventors of twitter jack dorsey and others wanted to share musical stuff. now you're giving away to do it. let>> absolutely. it is amazing the new streaming services that exist. everyone can listen on headphones. kind of a lonely experience. we thought, why don't we find a way to make it social again gekko partnering with twitter seemed like the perfect combination. cory: bringing music to mobile

in a lot of ways revised the music industry but the licensing quality, how much money apple was able to hold away from the publishers the industry. what is the licensing background to go why has it taken this long for it to happen gekkhappen? >> at the end of the day, we had to make the decision to pay for people to stream music. rhapsody has been here for a long time. we're still very early days. less than 1% of the people in the world are using a subscription music service. we want to educate the market that you can listen to music artists can get paid and you can have access to all the songs in the world.

cory: this will come out of not all that deep pockets of executives at rhapsody's got some? >> that is true. we're paying for music. in return as people get educated and understand streaming is a is possible that we have a service and will engage with the product and get more customers. we believe it is a very sound business decision by us and great for the artist. they get paid. great for people on twitter because they can listen on twitter and share it. fundamentally a thing on twitter. 20% will subscribe to the service. talk to me about this.

maybe not 100 on the probably happy with two or three. do you think about it that way gekko like this could lead to real business for you guys? absolutely. the conversion rate when you think of it like advertising conversion rates for apps people to install them are fairly low single-digits, but it works. it is today's social way, what we used to see when people would send you mail for direct response. what works today is social. i think we have hit on something that we believe will work great. if it does not work great, we will stop. in the meantime, we think the fact that you have to be a rhapsody user to share music on twitter will guide people to the acpp, and once you are there,

nothing better than having all the music in the world that your hand. listen to it all the time, take it with you. our customers experience this and we get more and more customers. cory: radio is very different now than it was even five or 10 years ago. music discovery seems to be the great mystery in the new world of streaming music where a lot of music is available in a lot of different john russ. finding music has not gotten any letter. fact, you could argue more difficult. >> this is why we could argue the twitter partnership is so important. where do you learn about music gekko you learn about it from your friends, the people you know. that has been lost when everyone

has their own apple headphones by themselves. twitter provides the opportunity to share the music, what you like. people can follow you, check it out. then we get excited about sharing music on their own. cory: i'm curious what is going on in the world of license and emerging trends. we keep talking to the holders of most of the rights to the music written in the last 100 years, and they are pushing back, wanting higher entire royal for every stream and play. pandora has been very vocal about fighting back paying less so they can have a chance at making a profit. what has happened and does that differ from the demand of the label? the music but not songwriting. >> i would say in general the

service from the beginning has been sent out to pay rights holders for the music. we have created a model of all you can consume, and then paying on the back end. we pay a lot of money and continue to believe it is important to do that. we just want equal rates for the rest of the industry, and if we can do that we will compete with a great product and innovation for acquiring new customers. cory: what is the first song you will share? >> i believe it will be 10 five pearl jam -- by pearl jam. cory: bloomberg "west."" will be right back. ♪

c i am -- cory: i am cory general motors making big johnson. changes in russia. it will no longer sell the old will. gm will take a $600 million charge over the business changes. volkswagen looking to get back in the van market. those comments today from the executive beginning in germany. they also plan to design and annexed to months whether battery technology in quantum gate is ready for prime time in electric cars. lindsey vonn captured her seventh world cup down filled

game. she is one of the final race of the season in france. she returned to the slopes after two surgeries in her right leg caused her to miss the olympic games last year. facebook diving deeper into mobile payments, giving users the ability to send money to the friend. for now facebook does not plan on charging a fee for the transaction. this news not a huge surprise to david marcus. payments guy going over to messenger gekko maybe that makes sense a year later but should others be worried gekko joining us is sarah frier covers for us. i was a little bit surprised initially but this could be a really big deal. >> the fact that facebook has been charging fees.

this is something you are already connected to your friends, they will connect you to your facebook friends network if you want to send your friends the invite, maybe a lot easier. cory: facebook has happened billion users of messenger all over the world. that is the process -- not that it is particularly daunting. i/o $1.21 to my friend jeremy in detroit. does this make it easier to g? >> i would make it a little bit -- i would be a little bit skeptical. you have to look at how they have treated things like this in the past. we saw skepticism when faced with worst users to use messenger in that chatting through the facebook app.

i know people who still downloaded to read a message and then delete it right after because they are concerned with the privacy concerns. if people are so freaked out about, will they use it to send money? facebook is saying they are not asking for your bank account. it will be a little bit more seamless. this is qlik technologies they have developed in-house so they are not giving it to a third-party provider. cory: this allows users to facebook friends and link debit cards and send money through the process. something a button on the massive -- messenger screen. >> it is designed to be pretty seamless. the question is, have people gotten into the habits of this

enough gekko cap people used paypal enough capital or are they just a skeptical as they will be of the facebook messenger gekko i think they will hold them accountable for privacy. cory: there is so much innovation in the arena right now. with a lot of money behind it. with it is snapchat was something like this. do these guys immediately jump to the front of the payment business. visa has an interesting business there as well. this they spoke jump to the front of the contenders in this arena? >> we will have to see how it gets adopted. people have had this small mentality about facebook over the years. there was a big person got them more than 500 million to use it. there is a massive power for

wide audiences. it will be interesting to see what side it falls on. i have not used it yet. we will have to wait and see. i do know the payment people do with paypal has becoming -- been increasingly common of the past year. cory: for research purposes, why don't you send me some money and we can see how it works out? >> maybe two cents. i will give you my two cents. cory: thank you very much. ♪

>> i am scarlet fu at the breaking news desk. starbucks>> sledding. 241-- splitting the stock 2 for 1. $94 goes to $47 per share. that is affected april 8. payable april 8. the six stocks slipped since the ipo. in addition, the earnings-per-share sees this with adjusted earnings per share for the second quarter of 32-30 three cents. once again, the news from starbucks, splitting the stock t wo for one. we know this can happen

reverberations down the road. tomorrow apple will join the don jones -- don jones is one of the biggest companies. we will continue to give an eye on the market reaction. more bloomberg "west." ♪ >>cory: i am cory johnson. new videogame store in town. north irishmen and four-time major winner nuvasive the gulf franchise. the first phase of the gulf tour the release in june. the see of the same star power? this is so interesting to me. we're seeing gulf is fullback in terms of popularity. -- golf has fullback in terms of popularity. >> just looking at where we were

at with our golf business, we made the decision to take an extra year of development in the game and move to a new engine. it was her first offering on the new generation of videogame console. we really had this mantra of next generation of golf. really soft about what that meant for the game. really it became fairly easy decision for us. rory mcilroy represents the next generation. he is up-and-coming stars in the game. the rickie fowler's of the world. european tour and pga tour

player of the year. i think his star just continues to rise. the list of accomplishments at such a young age, 25 joining the likes of jack nicholson at how things are trending historic week. what he represented in terms of representing the next generation of golf from an actual sports standpoint and have that tied to the game and lunch it on the first generation of consoles. cory: tiger was not on the cover of the game every year since 98. there were a few years and he was playing and was getting divorced and the colorful story for a while. you took him off and. you brought him back. could he return yet again gekko is this about building franchise the future gekk? >> i think it is really about

building a franchise for the teacher. he made a commitment and derek added to be partner with murray -- rory. i think the sky's the limit. i have some time to time with him in dubai in between termite -- tournament there analyzing the swing for putting it in the game. just where he is and where his game is at, i think he truly is obviously the number one. cory: he is a beast. he won the masters at the young kid. what is the cost to your business to make this change gekko? >> i don't have it you can quantify the cost per se. i think it is right time to get on board. his star is only continuing to

rise. i think he is poised to do great things in the world of golf. he has -- he is one masters away from competing. cory: we have to jump right now. thank you. it will be right back. ♪

cory: you are watching "bloomberg west." i'm cory johnson. let's get to bloomberg's top headlines. the obama administration stops short of congratulating regimen netanyahu on his election victory. -- netanyahu says there are issues that must be addressed immediately. >> we are facing great challenges ahead. i cannot elaborate on all of them but i can say with certainty that we have challenges in both diplomacy and security. cory: netanyahu's party

performed better than expected and captured as many as 30 seats. the sweden central-bank cuts interest rates deeper into negative territory. lowering the rep to negative -- -.25%. bank officials said interest rates remain at this level until at least the second half of next year. the lower interest rate is designed to combat a decelerating inflation and sweeting -- in sweden. the on am u.k. chancellor reveals his final budget to the parliament before the may 7 election. >> the hard work and sacrifice of the british people have paid off. the original debt target i send out in my first budget has been met. we will end this parliament with

national debt chair falling that share -- national debt share falling. cory: unemployment in the uk's at a six-year low. the jobless rate heading study at 5.7%. aaron schock will resign at the end of the month. he has faced questions about his spending, including private jet trips. the expenses first came to attention after he decorated his congressional office and they don't and abby theme -- downtown abbey theme. sony is selling playstation bureau in three cities -- playstation view in three cities. customers get on-demand and live programming.

a quick correction -- i said more about roy -- rory mcilroy won the masters. he won the u.s. open. musicians and comedians and artists had to spend this the penndot or luck to make it -- had to depend on pure luck to make it. a company is taking a step further. no label come in a publishing company, no middlemen. artists and their fans connected directly. how does the business work? exactly like you just said. there is this new emerging creative class that is not 1000 people, 5000 people it is hundreds of thousands of people growing up to become creative bunch of norse. -- creative entrepreneurs.

it used to be that there were three pipelines to the people. people who controlled those pipelines. it is not that way anymore. if you have something great to say, people will listen. >> how does it work? >> you create a page and then you go to your fans through whatever channel you happen ask them to help you. a dollar per video or five dollars per web comic. some folks paying a hundred dollars every time an artist releases them. cory: fans are offering to buy a subscription to the work of the artist. >> it is not a pay wall. the artist is not saying you can watch this unless you give me five of the month. the artist says i'm making stuff anyway. if you want to pay me five dollars a month, you can. if you do that, you get this

other stuff. cory: didn't knew we c.k. do something like this? he said i will sell my stuff and if you want to throw some money at me, i would appreciate it. >> he sold his comedy special director the fans. it was an incredibly successful campaign. cory: you are a musician as well? >> i have been a professional musician for the last 10 years now it has been my living. i still am a professional musician. my fans are pledging a little over $6,500 per video that we release. the band makes one video per month and we get $6,500 for making that video. cory: does this let you change the way you do your work?

>> having a regular budget as an artist is the coolest thing ever. other artists can tell you, money comes in chunks in this field. you will go for six months with little income and then get a big licensing deal and it's hard to budget when you have such a regular bursts of income -- a regular bursts of income. we know when we released this video, we will get a check for $6,500. cory: people found that the revenue was not there on youtube. is this dependent on the charity of strangers? >> you could call it charity. i don't like thinking of this as charity. there are some creators that i love so much it is a feeling i have -- i want to pay them to make more stuff. that is an old feeling. cory: i don't want this music to

go away. >> that's how every great piece of art we've ever known has been made. cory: there were patrons. >> why is it different? cory: it was smaller groups, not infinite groups. >> but now you have the crowd. you have everybody. instead of depending on one rich person there is a million people to give you a dollar. >> what was your initial inspiration? >> i had spent three months working on a robot music video for myself. cory: as opposed to a regular music video? >> and anna medtronic -- anna imatronic had. i knew it would get the half a million hits.

that leads to very little and revenue. my last check was $74. cory: you were doing a tech video. hey, maybe there is crowdfunding. >> the connection was i will get half a million hits on this and a lot of people will enjoy it. it will lead to 70 bucks a bad revenue. that doesn't make sense. five football fields of people should not be worth 70 bucks. cory: can't wait to hear it. interesting stuff. we appreciate it. ♪

cory: this is "bloomberg west." this is a story about elon musk. he is turned but questions about the car's battery to rest.

tomorrow, he is making a big announcement that he says will soothe customer anxiety. tesla has been hit with technical issues. george joins us via skype from chicago. the director of the joint center for energy storage research. this issue of battery innovation is such a fascinating one. how much can tesla push the envelope on the technology they already have with the software? george: we are on the edges of our seeds to see what he will say tomorrow. the battery is computer batteries repackaged for the tesla. they take up a lot of space. his announcement that he is going to make an announcement is a little strange because tesla already goes farther than most

electric cars. i and everyone else and curious to see what he will say. cory: i wonder, you guys have been trying to push the technology of batteries much further than tesla. i wonder how you guys look at tesla and say why don't we get some duct tape and compete batteries and do what tesla is doing? george: lithium-ion batteries just don't have it in itself to go more than about 50% what it does now. we are taking the next step. we want to look beyond lithium-ion and get suffering -- get something that is a factor of five or better. it is very aspirational and aggressive. we think we can do it.

we gave ourselves a short timescale. we set five years. it might take a bit longer. the answer is out there. cory: i think it is so fascinating, it's interesting how tesla has used the infrastructure of tax credit to fund their business and development. it may be one of the reasons they could not raise -- you look across the map of all the places where you can get tax credits for building the cars as long as they are selling cars in new jersey and new mexico and new york and a few other states, they are getting tax credits based on how many cars they produce to be sold in those states and those credits are available now and not later. is that something that factors into the economics of what you guys are doing?

george: it is one of the motivators for tesla and common sense would tell you it is. is smart enough to figure these things out. -- elon is smart enough to figure these things out. we hope to transfer what we are producing to manufacturing in a few years. it will take them another 3-5 years to bring it out. we are talking about something 5-10 years out from now. cory: two that come in the last quarter -- tesla is leaning up 33% -- 33% from these tax credits in the last quarter. tesla says that is going away. is that worrisome when you think about how this business works? george: tesla has to try hard to get its market bigger.

the current revenue generation mechanism is shrinking. he needs to sell more cars. that is one reason for the announcement tomorrow. to make it more appealing for people to buy a tesla car or the next generation tesla car we hear about was coming in the future. that is a real step. he's probably feeling the pressure of time. cory: you think they will have a $30,000 car in the near future? george: i hope they do. i was waiting for the $50,000 car. i'm on the verge of buying. if the price gets low enough i'm there. cory: thank you very much. an interesting story. time for a check of bloomberg top headlines. edward snowden holding a news conference via video link in

hanover, germany. here he is talking about the u.s. government's surveillance program. >> we were removed from the ability to know that these policies have been enacted without our knowledge and consent. we did not know that we had to think about who we were calling in the middle of the night. our weaknesses, our own abilities come our hopes and our love. cory: he previously addressed sxsw earlier this week. starbucks announces eight -- new shares payable april 8. it has split its stock six times.

starbucks gave a modest boost to its earnings guidance for the quarter and the year. bottom line coming up at the top of the hour. mark joins us from new york with a preview. mark: we are on fed watch. global markets are paying close attention to the language that the fed uses particularly as it relates to interest rates. we will have live coverage of janet yellen's news conference at 2:30 p.m. washington time. rfid coverage begins in just a few minutes -- arafat coverage -- our fed coverage begins in just a few minutes. ♪

cory: more people are ditching traditional jobs to work freelance. freelance and health insurance does not always happen. a company using big data to predict health care expenses and

offer recommendations. joining me is the ceo, no appeared -- knownoah. this issue of insurance for freelancers is a huge problem. >> it is very tough. these are individuals -- one in every three american workers on their own. they love their freelancing lifestyle making fractional work -- they are on their own when it comes to picking their own health coverage. cory: what do you guys do to help that? >> we are a mobile first web app. you can go to stridehealth.com. we help freelancers build a health profile we can use to forecast their health care use for the next year. it is a fairly complex financial model on the back and but for the user, simple.

cory: you look at what insurance copies have to offer and legion for them. >> we don't just drive you to an insurance company. we stick with you. we are like a financial advisor. then we stick with you throughout the rest of the year. we get your government subsidy if you qualify for one. cory: is obamacare the thing that leads your business? >> it is one of the few things that enabled our business. we can create an index out of all the health plans on the market. and use intelligent engines to

sit on top of that index and make recommendations. cory: the affordable care act made the plans codified in similar ways they could be compared. >> right. you had all these different benefits, very hard to figure out as an individual or machine. or a piece of software. cory: you are doing it in many states across the country. are you picking it by market size or by the ability to do business in those states? >> for us, it's mostly market size. the largest states out there. we cover 44% of the u.s. population across seven states. the regulations are different in each state. we are regulated like an agent or broker. it is an agent model.

cory: it is interesting that you are matching with new economy companies. >> for the first time gathering freelancers around a particular type of work and recognizing they have needs. they are at risk, on their own any someone to take care of them in a human way. that's what we are therefore. cory: thank you very much. it is time for the bwest byte. tell us a whole lot katie. what have you got? katie: three problems for uber today. the company is banned in two cities in germany the office in paris was ratedided and they've been charged with running an illegal taxi firm in korea. cory: it seems like the business plan is storming into a market

finding out how it is legal or illegal later. katie: they have grown tremendously. these hiccups threaten their ability to own these cities. they have to press pause and then competitors can come into the market. cory: when i talk to investors, they say they have a better shot at going market by work market. are the challenges different in south korea and germany and france? katie: that is what they were finding. their expansion plan is hitting roadblocks because there are cultural challenges they did not anticipate. uber has been scaling back its militaristic approach to entering cities and countries. cory: thank you very much.

get all the latest headlines all the time at bloomberg.com and bloomberg radio. we will be back tomorrow. ♪ mark: this is a special edition of "bottom line." we could get the answer to this question in five minutes. should the federal reserve jettison a promise to remain patient about raising interest rates? if they do, it could mark the end of an area in fed communications policy and could usher in greater market volatility. the statement is released at 2:00 p.m. washington time. janet yellin will hold a news conference half hour later washington. we will have live coverage of both.

peter cook is at the fat. we will hear from him in a few minutes. also joining us, constance hunter, chief economist at alternative investments. a senior forex strategist. these are brought moments -- lisa abramowitz standing by. let me begin with this. 69% of the 49 economists surveyed by bloomberg news believe the fed will remove the word "patient" from its forward guidance language. will it be taken out and will it be replaced by some other form of guidance? >> i think they will take it out. i don't think they will replace it with another word per se. they realize having this word creates a bunch of interest of when it gets removed.

i don't think that stops them from being patient. the fed will be patient. they will be data dependent. >> will they take it out? >> we have a 5% probability it doesn't happen. they will take it out. we are going for a rate hike in june. >> what is the bond market expecting? >> the bond market is expecting that they will take patience out. if they don't, that will be a bitter surprise and will say something about the confidence they have in the u.s. economy. the bigger surprise is that they don't take outpatients. -- out patience. >> they are saying march, april, may. by how much? >> it doesn't mean they are going to hike in june.

they have tried to detach themselves from the to meeting constriction they set out last year. >> let's go to peter cook with the fed decision and statement. good afternoon. >> patient is gone. the fed is dropping its pledge to remain patient. at the same time, their forecast for interest rates going forward show the pacing seems to be scaled back. somewhat a mixed message. consistent with its previous statement, the committee judges an increase in the target range for the federal funds rate remains unlikely at the april fomc meeting. the committee of his space it will be appropriate to rage -- raise the rate when it sees further improvement in the labor market and is confident that