you can learn about the target hack in the new issue of bloomberg businessweek.t's on newsstands tomorrow. it's online right now. businessweek.com. make sure you download the bloomberg businessweek app on your iphone, ipad and android phone. case study number two. a company that money been able to stop a problem. were talking about general motors dealing with the fallout from a massive recall. 1.6 million vehicles with a faulty ignition switch. the problem linked to 12 deaths and a letter to regulators, they admit they knew the problem as early as 2001. jeff green explain how they handled this. >> she has been keeping a low profile. she said in the most recent statement that she is leading the effort behind the scenes. she's not up front. this does not come back to her all that much. it's for ceos ago when this all happened. it is a rough start. she started out at the state of the union being praised by hillary clinton and now she is recalliled in this messy -- embroiled in this messy recall. >> she says, i did not know this until a few weeks ago. how is it that

you covered this for bloomberg businessweek. the prime minister actually had a strategy in mind. >> he is smarter than he seems. cut off access entirely in 2011. what he did was -- this was a dns block. >> back a technical. >> that is the easiest type of block to get around. if you change settings, within two hours, people had spray-painted graffiti explaining how to do this. we can ask why he was doing this. and facebook have offices in turkey that subject them to turkish laws. there was a vast, sweeping censorship bill just passed. twitter does not have an office in turkey. twitter is on the side of the angels in terms of protecting free speech. what you have now is him protecting twitter -- i can make the bloc more comprehensive and make your life more complicated. until twitter has to make a decision. what is the long-term land? >> with the twitter do for crimea? >> not that much. >> nothing like egypt. twitter only did so much for egypt as well. even the people who sort of follow this will tell you that you cannot apply mag

businessweek did an article the chineseings most want, different elements. they had 10 of them. the top 10 things. friends respect me for it. they actually say, you are right. they live in china. gettingt believe we are away with it either. the thing they most want, anything trump. you believe it? my apartments, my ties. they love me. i have the largest bank in the

an explosive story about the massive target data breach, bloomberg businessweek has learned the target systems quickly detected that someone had broken in the executives did nothing. we will spend the next half hour diving deep into this story and looking at what went wrong plus the secret black market for credit card information and the underworld of who traded. amazon is raising the price of its rhyme membership by $20 to $99 per year. current members are being sent reminders about their renewal dates when they have to pay the higher cost. the move will generate additional revenue for amazon. prime gives members access to free two day shipping and amazon video service streaming. john donahoe is stepping up his game at ebay against harel icsahn who wants ebay to spin up paypal. he has consulted with other icahn targets including tim cook and reed hastings for advice on how to handle the activist investor. he has met with goldman sachs and institutional investors to make his pitch that paypal belongs with ebay. the ende era -- it is of an era for google. it has removed underlined links

this is a bloomberg businessweek exclusive investigation. >> what did general motors know and when is the big question. we're talking about the deadly ignition switch defect, knowing it almost a decade before the recall. >> obama goes viral. to those appearances really get the president's message out? apparently so. you are watching "market makers." i'm erik schatzker. >> i'm stephanie ruhle. did you watch him? it was really funny. >> i think zach galifianakis to a little funnier than the president. of the first time and said, they're so funny. i watched it again, and zach was so funny. serious news. is one steptric closer to getting out of the consumer lending business. the company is registered to file for an ipo of its north american finance unit. they plan to complete the ipo later this year. callediness will be synchrony financial. the biggest investment bank may be taking a hit in the first quarter. according to jp morgan, revenue from trading them under running, and m&a may follow total of 11% simply because clients are cutting back. and also the biggest losers will be barclays

as we told you earlier, bloomberg businessweek paid a visit to oculus headquarters. brad found. >> right now, i'm wearing a popular virtual reality headset. i'm flying off into space with asteroids around me. i now see my enemy. i'm firing my machine gun. this is crazy. >> the maker of the oculus headset is making a big promise that virtual reality will finally feel real. virtual reality were perfect and we could experience of the full body language, full presence, feeling like we are in the same state, like the matrix except everyone realizes they are in it. >> he created this in his parents garage and started showing it in 2012. that was only the beginning. >> now you are the cofounder of the company that just earned 75 million dollars earning toward a commercial product and you get to live your passion. >> it's pretty great. it is great to work with a lot of people that are a lot smarter and what they do. >> one of them is gaming entrepreneur brendan every day. >> i was always skeptical because i grew up in the 80's of 90's and there was a lot expectation, but the

the story is in bloomberg businessweek in the etc. section. here, laura greene as well as them a rosenbloom. -- emma rosenblum. whiskey from frank. >> for not trusting the -- so not trust select is what it called. >> we know that he consumed jack daniels whiskey. >> but he and never -- but he never endorsed it when he was alive. now they have partnered up and it is going extraordinarily high-priced. about $150 up to $250 per bottle. >> what makes this sinatra select any different than the regular jack daniels echo >> it is 90 proof as opposed to 80 proof. and they say it's got rich amber tones and it is an open task. she can tell you why it is actually better. but it also comes with a book about frank sinatra's life and how he relates to jack daniels. >> wasn't frank thatcher buried with a bottle? areasn't frank sinatra with a bottle? >> legend has it that he was actually there it with a flask of jack daniels. .e know that he loved it he chose to go onstage with it. he was introduced to it by jackie gleason in the late 1940's in new york city.

we have this incredible opportunity to make and design beautiful things around us. >> bloomberg businessweeking the second annual design conference in san francisco on march 10. for tickets and information, go to bloombergbusinessweekdesign.com. the son of jimmy choo has created something he wants to replace the smartphone. >> in japan, there is a serious issue. these dolls, we make sure they stay indoors and do not [indiscernible] at the same time. it is a character i created in 2007. up until recently, she was just an illustration. i wanted something more physical. i was born and raised in the u.k. i discovered japanese culture in the u.k. i decided i wanted to live and work in japan. i would share my daily japanese life online. that attracted an audience worldwide. i used to make shoes in my dad's studio. he is quite surprised i created this anime world. he loves it. he has one at home. we ended up working on doll shoes. there are different versions of the doll. there is an automated version which is robotic and powered by electricity. there is a manual version which is powered by your im

businessweek", such a fascinating story.he amount of detail in the story, what happened and how, and the fact that target did nothing when they first found out about it. >> we're going to talk a lot about this. i think the impact is important not just for target and not just for the tons of people affected but for every business involved in customers in technology, which would mean pretty much every business. >> michael riley, one of the authors of the story, joins us now. the headline on the story is, target blewett. -- how target blew it. how did they blow it and why? targeted all the right things to prepare for this kind of event. they spend a lot of money in security and bought very sophisticated tools. fire eye catches the malware at an early stage and it is used by the cia and pentagon and intelligence agencies all over the world. they curated a security operations center, a headquarters where specialists sit and analyze data that is coming in and look at alerts. they have a round-the-clock monitoring service, includin

businessweek has learned a target security systems quickly picked up the data, but executives did nothing. what when wrong? a look backley has at the timeline of events that led to the data theft that touched as many as one in three american consumers. >> the first time that target heard that they had been hacked was december 13. the bridge itself actually began sometime before then. what the target know and when did they know it? hackers began capturing credit card data on november 27. three days later, a site spotted the malware. soon, a security worker in india on toe alarm and sent it the minneapolis operation center. the alert is overlooked. on december 2, security tools detect another version of the malware, this red flag also goes undetected. had target acted on the alerts, they would have been able to prevent one of the biggest data theft in history. instead, for more than two weeks, the hacker software collected credit card information and bounce it around the globe to places like moscow and odessa. i december 12, federal law enforcement officers contacted target. the retailer hi

and emma rosenblum is with bloomberg businessweek. ♪

businessweek did an article the chineseings most want, different elements. they had 10 of them. the top 10 things. friends respect me for it. they actually say, you are right. they live in china. gettingt believe we are away with it either. the thing they most want, anything trump. you believe it? my apartments, my ties. they love me. i have the largest bank in the world from china, the chinese , theyiggest bank in china are my tenant in one of my buildings and they said we will never leave. we love you. we love the building. smart and they respect you. they don't respect stupid people. they are dealing with. ok? obama care has to be changed. immigration, we are either a country or we are not. we either have borders or we don't. we either have borders or we don't. [applause] you know, you have a border, you have a contrary. whatu don't have a border are we doing acting nothing? i feel strongly about that. as conservative people and does some are so conservative you don't even want to be republican and i understand that, too. [laughter] as conservative people and does republicans

thes talk about investigation by bloomberg businessweek.t was interesting is that target was ahead of the game. they still had this happen. ofit is the biggest gays institutional ineptitude -- biggest case of institutional ineptitude. this could have been stopped. you mentioned russia and the ukraine, the pirates took it right. they compromised tens of millions of consumers, it is inexcusable. >> target is in the midst of their investigation. information to get on why this happened. why do you think they were asleep at the wheel? the director of the s in october. he was not replaced. in addition to that, target outsourced the 24-hour watch of its system overseas. for all of the red flags that should have been monitored every day and night, target was not watching them. when they did find out, it did a three-day internal investigation. consumers were compromised andng the thanksgiving christmas time. >> it sounds like our retailers are not is up to speed as other companies in other industries. there was a discussion -- it says target was ver

michael moore of bloomberg businessweek has covered this issue extensively.wall street to rejoice? this is primarily stock? >> there are two ways to look at comp. what you were awarded and what you actually got in the bank. with deferrals going up, those numbers have diverged. are getting inu your bank account. this is cash on the day. this is deferred comp from previous years. you are now just getting. has been bank stocks have been on a tear lately. >> all of that compensation they got in stocks is now investing is worth more. what does this tell you about the market? is wall street having to pay out more in order to keep cap people? >> a couple of facts. -- effects. people are getting more money and the competition is picking up. it is taking more to pull somebody out of their current spot because that deferred comp is building up in value. it is worth double what it was when you got it. to poach youoing out of that seat, they have to pay up. >> you are not going to leave $3 million on the table. ?> what is the average deferral >> most companies, three yea

in the period between two thousand and eight two thousand thirteen haven't well functioning in businessweek which affects the functioning of their backs that may not open the case of an accident. and test. us. six employees at the olympics. it's the only new scientific research institute and charismatic both of us will be no meaningful. the descents and dictated to solve problems of the tracks in the speed of the unicorns to start the second concentrates to see me. a thirsty. it should be noted that more than four hundred another instance of the institute for ecological seedlings grow into adults of the bbc. the timing of its stock. in two thousand and three that the publishers association was reduced to its association with the indictment of the proceeds to tell me that i can to provide our incomes to my missing on the summer season in the development of the kopitiam industry protection of the interests of the news that the proper stance. i think the real reasons for it. michael harbison said the twenty first of march to present a physics or something like this the kids each week we would

theon't forget to pick up newest addition of bloomberg businessweek.n issue. ♪ >> i am in morning. we will be bringing it baseball spring training. is already heading out to florida. he tried to do the florida arizona junket. he will be in florida on monday. >> scarlet, it is the yankees. we're not showing the yankees. >> for those of you on radio, it is a guy named derek jeter. >> he could not look better. we promise we will mention the red sox on monday. it is bloomberg surveillance. you have company news? >> it is a tech themed company news. reed hastings once bigger traffic.ns for steve bennett was let go after the company struggled. it is often bundled with new pcs. microsoft loses a board member. he is stepping down from the board. he was a member of the search committee that led to the new ceo. he said he is leaving to focus on his full-time job as ceo of his own company. bell system breaking news. buy wheneral will media. -- lynn media --lin media. richmond, virginia. country --d that company in 1965. it used to be in nashville. >> is the price

kyle from bloomberg businessweek knows who will be cashing in. >> it is march madness, which means onwill have a new college basketball champion. there will be plenty of winners and losers off the court. cbs and turner agreed to pay almost $11 billion over 14 years for exclusive rights to the tournament. that is almost 900 games. the tournament draws more ad dollars than the nba playoffs, then the super bowl tv advertising, and the super bowl. each regional conference get a payment from the ncaa of $250,000. conferences generally pay that money to the schools competing. the payments are spread over six years, so there is a big incentive for schools to go deep in the tournament every year. last year nike had its gear on 52 of the 68 top teams. this year the teams are undefeated and all eyes are on them and their nike gear. some 86% of workers say they will spend part of the day checking out the tournament, which equates to 1.2 billion in activity. warren buffett's berkshire hathaway is offering a $1 billion offer to those who hit the perfect bracket. they don't think anyone is lucky en

we're joined now by came back with -- and the head of research for bloomberg businessweek, who recentlythe static ad business. what is going on? the idea that it is not changing. as a percent of gdp, we saw the chart. it is one percent and oh it has been that way for a century you compare it to industries like the financial and insurance industries and we have seen a triple. we have seen manufacturing the down and technology go up. they have been flat one percent. >> it is counterintuitive. you think of that growing right now because of social media and online advertising. with thel grow economy. you expect three or four percent growth. that is about what we expect with the economy. qwest there's one thing you're not considering. earned media is not part of measured media. all social media, facebook, twitter, youtube, that stuff, that stock -- that is part of it. other parts are flat. he earned media part is growing. factored the economic value of earned media, it probably doubled in the last five years. would you think that is their? >> that is what i wanted to ask you about. you see a

special weeklong series on the role of design and technology -- in conjunction with "bloomberg businessweekalking about wearables today. >> i have downsized to only one. >> you are wearing all of them. one have downsized to just but i am a big fan of fitbit but it's an interesting experience to its variance -- to experience the differences. >> we have the guy who designed the fit bit and you designed the whistle which is a fit bit for dogs. also the one for babies. >> it is more than a baby monitor. you can be more aware of the babies situation, fever or not, movement or not and so on. >> i understand there is some you strap around your cat. >> yes. >> what goes into the process of designing something you're going to wear every day? issue withest designing things that are on the body is that you need to fit onto a lot of different bodies and there is a huge variety and big size and small size people. many of these pieces of technology are quite cumbersome and you want to soften its and make sure you are comfortable wearing it a long time. that makes it even more connotative. a lot aboutng i

if you are going or just curious, pay attention, sam grobart of bloomberg businessweek breaks it down>> heading down to austin for sxsw? not going but still curious? three things everyone will be talking about. there is a paradox -- everybody loves coming to austin for its laid-back vibe. if every corporate marketing department blows out its budget on a giant event, a ruins that vibe. the city has been pushing back. last year, the police shut down the pandora party. this year, lady gaga was denied a permit to do a concert in a vending machine. we are getting into dangerously close yogi berra territory. no one will go anymore because it is too crowded. this year, there are more sessions at sxsw discussing women in tech than ever before. 17 of them. after leaning in and analyzing marissa mayer's every move, it is natural this would become a huge topic. now in the second phase of the issue. the first was recognizing there are not enough women in tech. the second is to talk about it. the third will be when women in tech is a reality. it is almost too obvious to bring this up. facebook's $

we are also joined by businessweek brendan really. talk about what's happening at staples.coming. they plan to close up to 225 stores in north america, planning to cut costs by half $1 billion. there are a couple of things going on here. come addition from lower-cost retailers like amazon. -- competition from lower-cost retailers like amazon. sales of staples.com gained 10%. this is the take away here. the news is not all bad. half of its business, which is much higher than most other rick otherrtar retailers -- brick and mortar retailers, is much higher online. not mean that amazon is not still a risky, but staples is one of these retailers that has adapted and continues to try to adapt to this changing landscape. >> didn't they have those amazon lockers? order at, you could amazon and store it at staples. i think they did that. >> in the last three or four years, they've done much better than they did in the beginning years of amazon. it's not that brick-and-mortar is necessarily doomed. where do you actually need to talk to a human and physically look at something? when

. ♪ >> be sure to check out the newest edition of "bloomberg businessweek."ou can also read it on our cap as well. be sure to check it out. welcome back to "bottom line." we are streaming on your phone, your tablet, and bloomberg.com. for mark steel in crumpton. my next guest has been in investing in russia since 1993. he is the founding member of austerity capital management. he joins me from london. -- founding member of prosperity capital management. thanks for joining me. what changes have you made in your investments in the last couple of weeks? >> we do not make that many changes on a weekly basis. we are long-term investors. we have fairly large stakes in good companies around the world. of course, we are monitoring everything that is happening summit to see if anything changes fundamentally, but right now our investments are working as normal. yourfore we get to investments, you have visited the russia-ukraine region. what was your take away? of.e were in key we -- kiev. we have investments in ukraine. relaxedal, they were about the situation and very

eric chemi is the head of research for bloomberg businessweek.t is as static today as it was in 1920. >> it has never changed. it has been flat line the entire time. we're used see -- where you say things like finance that have tripled. >> you see social media and the internet -- >> you think yeah, advertising is really growing. but is this a transfer of funds? of advertising looks like gdp, which is why the percentage is just flat. it is all a share game. everything you see on the internet just takes away from newspapers, television, and radio. qc -- you see -- >> that is exactly what you see this. they have to consolidate. it is all about stealing share. thehat does that say about creativity of the ad industry? coca-cola,s like they have not got more confidence in the value of advertising. you go back a century, and they spend about three percent of their sales on advertising and it has never changed. they are no more confident than they were in the night t 90 -- in the 1920's. be the more the economy grows, the more they sell, and the shares s

this issue of bloomberg businessweek is the design issue, also completely awesome, full of stories like think he just hit the stands today, so pick it up. it is the quintessential italian fashion brand, fendi. we get a look inside the family business that has made its mark on runways around the world. stay with us. and they have made their mark. james bond's iconic cars on display in london, the biggest display of bond cars ever. we will give you a sneak peek, coming up next in luxury. ♪ >> in luxury, bond cars, handbags, and fine art. let's start with art. now you can find it alongside books and toilet paper on amazon. amazon art launched last year, selling everything from $25 prince to half a million-dollar oil paintings. how will brick-and-mortar galleries compete? >> it is great that amazon is coming into this space and opening up to more people, but what i have seen, they seem to be focusing on a category of art that is more functional, art that you want because you have space over your couch, as opposed to something more aspirational, something you buy because of the brand. >> thi

. ♪ >> be sure to check out the latest edition of bloomberg businessweek. can read it on the go with our new app. it is 26 minutes past the hour. that means bloomberg television is on the markets. street right wall now. >> it has been a strange day after that -- we got that jobs report. changed,ittle kicking into the red as we watched it. it did close at a record yesterday. there could be the thinking that some of the upside of the jobs report might have been priced in. there are concerns about what is going on in ukraine and whether that situation will continue to escalate. in terms of into visual stocks that we are watching, mastercard and visa, the two biggest critic card companies are creating a working adoptionaccelerate the of chip technology. they are under pressure to advance chip tell -- chip technology in the u.s. after a data breach exposed information of tens of millions of customers. visa has said these chips that are used in europe could help address 70% of these frauds. we will be back in 30 minutes. more "bottom line" coming your way next. ♪

. >> that was an interview with brad stone of bloomberg businessweek a few years ago.e is the ceo and cofounder of facebook iscompany buying. the company has a product that is still in development. remember, they split just bought a mobile messaging company, at 19pp, and that was times projected sales, but whatsapp, well, at least it adds one million users a day, and it is on its way to one billion users, so you can see why facebook like whatsapp, but why would it like a company that makes a clunky videogame goggle? >> ultimately, what facebook has decided is that oculus and the rift will be the platform, $4 inlion in cash -- $4 billion cash. it is a huge decision for a company to try to determine what this will be very far out and to put that that down there. >> that was a take from our bloomberg editor, cory johnson, and here is what they are saying. >> this is an important acquisition for them. >> you have to imagine this is hotly competitive. seems likeends what an auto mount of money, and it is like a bunch of people are detting i believed -- eye blee plus a lot o

begin a special weeklong series on the role of design in technology in conjunction with bloomberg businessweek'sssue on design. the way a product looks and feels is now as important as its function. great design leads to great user experience and robert brunner is the former head of industrial design at apple. great to have you back here. you left in 1997, how has your design philosophy evolved over the last two decades? >> i have always been around designing things that are simple an example and accessible but at the same time aspirational. that is what apple continues to do and the way i like to work with companies and create meaningful things for their customers. >> one of the things i found interesting is that you like to jot your thoughts down right away. explain that to me. >> design is very emotional. i like to dive in and see what my reaction is right away. what are the first things in your head and how you react. i put that aside and go through the research process. i like to come back to them. a lot of times i am right. it is that gut reaction of what our products should be, look, or b

be sure to check out the newest edition of "bloomberg businessweek."an read it with the bloomberg+ app. you should check it out. this is "taking stock" for thursday. have a great night, everybody. ♪ .

" -- sam grobart of "bloomberg businessweek" head down. >> not going but still kind of curious?e three things everyone will be talking about. there is a paradox. everybody loves coming down to austin for its laid-back vibe, but with every corporate marketing blowing out its budget, it kind of blows that five. last year, the police shut down the pandora party, and this year, lady gaga was denied a permit to do a concert in a giant doritos vending machine. we are heading into dangerously close euro b perez territory. berra territory. this year, there are more discussing south by the role of women in tech. 17. after "leaning in" and analyzing marissa mayer's every move, it is natural that that will be a huge topic. that means we are in the second tech of women in issue. the first is recognizing there are not a lot of women in tech. he second is to talk about a lot. the third is when women in tech is not an issue, it is just a reality. it is almost too obvious to bring this up, but facebook's $19 billion otis of messaging service whatsapp is going to have everyone wondering what com

talk about bloomberg businessweek's involvement in all of this. >> bloomberg business we got quite ahout outs in that senate report. our colleague worked with a team of reporters to uncover how hackers got in and always target went wrong in their response. today's hearing appears to have come about thanks to that same exposÉ, so good job, bloomberg. lex lawmakers have introduced legislation to address the data breach. where is that going? >> senator jay rockefeller, chairman of the day's hearing along with diane feinstein, introduced a bill to address this very issue. it would allow them to said data securities tendered and establish a reached notification system and be empowered when state attorneys general to ring penalties against companies that fall short of their requirement. it hasn't gone anywhere yet, but with target as its poster child, rockefeller is making a strong case this afternoon. >> inc. you so much. let's talk all it took now. gave jolly's victory outside groups a playbook to explore ways to possibly gain the six seats the party needs to take control of the senate.

be sure to check out the newest edition of "bloomberg businessweek."ead it with the bloomberg+ app. you should check it out. " foris "taking stock thursday. have a great night, everybody. ♪ ♪ live from pier three in san francisco, welcome to "bloomberg west." we cover innovation, technology, and the future of business. i'm emily chang. after thet investigation into the massive data breach that exposed 40 million credit and debit card numbers. target security systems quickly detected the hack attack but executives did nothing. we spend the next half hour diving deep into the story, looking at what went

vanessa wong from "bloomberg businessweek" was quoted knows the drill. >> it's time for your fast foods economics. fast food chains want your business before lunch. it is a huge opportunity for them to ring up extra sales since their employees are preparing lunch. case in point -- mcdonald's. burger king has been trying to boost its breakfast sales and taco bell is rolling out a new breakfast menu this year with creative items like the waffle taco. but it's not as easy as it looks. wendy's tried to offer breakfast and it did not go too well. we spoke with a food industry consultant about how fast food chains are getting sleepy customers through their doors the morning. number 1 -- coffee. not just any coffee. good coffee. look at the recent success of starbucks and dunkin' donuts. coffee is highly cravable and it's a daily ritual. number 2 -- low prices. many people don't even eat breakfast and those who do do not want to spend a lot. so if your menu prices are too high, your customers will have a cereal bar at home. three, creative menu items. did i mention taco bell's waffle taco? yo

bloomberg businessweek is out with this design issue.on newsstands now and is available with the app for free on your iphone, ipad, or android device. we are all connected. coming up, 15 central park west is one of the most powerful addresses in the world. ♪ >> this is taking stock on bloomberg. i'm pimm fox. if the walls of central park west could talk, they would have some interesting stories to tell. it has been the home of some of the most notable and wealthy new yorkers, and globetrotters. current residents include lloyd blankfein, yahoo! cofounder, jerry yang, bob diamond, and dan loeb. the famous address is featured in a new book entitled "house of outrageous fortune: 15 central park west, the world's most powerful address." the author is michael gross, and he joins me now. thank you for being here. i want people to understand that you seem to have a penchant for real estate, because you've written a previous book on real estate, and now this one. what is it about real estate that attracts you? >> it's a window through which you c

businessweek has learned a target security systems quickly picked up the data, but executives did nothingg? brendan greeley has a look bac

bloomberg businessweek's second annual design conference, and animation director talked about the evolutionanimation. i am here to talk to you about giant robots battling giant monsters. the animation industry and the visual effects industry has changed a lot in the last few decades in terms of the business end of it and the technology we are using. when i started out, if you wanted to do creatures and movies, you did it with stop motion animation. now, everything is computer graphics. in terms of the actual job of the animator, creating performances from characters, that job really hasn't changed a whole lot. just creating characters that an audience looks at and believes it whether it is a monster or a thinking character, a speaking character. when they look into the eyes of that creature, they believe it is thinking and living and breathing. when we are doing a film with creatures, the more outlandish and alien they are, the more we need to look to nature to inspire us and to ground the creatures and things that are familiar. we look at all different kinds of animals and skins and the wa

was your long set budget week on bloomberg businessweek. joshua green called the budget obama's $3.9 trillion campaign ad. is that true? >> there is a short memory about how budgets are. the time of in divided government, budgets serve two purposes. item model for the appropriations committee that is going to fund the government. that is not been as relevant in recent years, because time is has not been able to pass a continuing resolution -- has not been able to pass a budget but continuing resolutions. it also lays out a broader vision of how the government want -- of how the president wants to govern. last year, we took a detour and embedded in our budget, the last offer made to speaker boehner was an attempt to jumpstart additional negotiations and get rid of the sequester. it was dancing around but was not being done for a long time. he was tried to put forward some compromises on entitlement --orm, spaces of specifically chained cpi. >> you pull back on that. >> let me explain. speaker boehner said any deal should have was chained cpi

>> that was "bloomberg businessweek's" sam grobart. ahead, the changing of the guard at y combinator. we will talk to the guy who is taking the reins from founder paul graham next. ♪ >> welcome back to the best of "bloomberg west." i am emily chang. after 9 years as the head of y combinator, paul graham is stepping away come in taking over as the new president is sam altman. he has been with them since the first start of class. i talk to him about what it is life to be in charge of the organization that launched him. >> i believe this is an important institution for startups. it is really important to me. >> what is your role going forward and what is paul's role? >> paul is going to advise the startups. that is what he did when it was small. there were only eight companies in the whole batch. i will handle running and organizing our operation and hiring partners. i will make decisions that run day-to-day. there is so much incoming at yc that it takes all of your mental cycles. paul will advise startups. >> you have invested in 630 sta

much of the credit -- bloomberg businessweek's brad stantec -- checked out the latest products. >> im wearing a virtual reality headset. here i come flying up into space. icy asteroids around me and i see enemies. i am firing my machine gun did crazy. >> the maker of this headset is making a big promise, that virtual reality will finally feel real. reality wereal perfect and we can have experience with full body language, full presence, feeling like we are in the same space, like the matrix, except everyone realizes were in it. created thispalmer and his parents garage in 2012. only the beginning. >> your personal passion. now you are the cofounder of a company that has $75 million, moving for the commercial product, and you get to live your passion. >> it is great. a lot of people who are a lot smarter at what they do. he is of the people working with is gaming entrepreneur brendan. >> i was skeptical up about virtual reality because i grew the 1990's980's and when there was a lot of expectation and excitement, but the technology was not ready. the technology luckily is finally ther

. >> we have to do a victory lap at bloomberg businessweek. quite a few shout outs. with a team of reporters to uncover how the hackers got in and all the ways target went wrong. aboutarings have come thanks to the exposÉ. introduceds have things to address breaches, there has been a lack of cooperation between the fbi and companies, a reluctance to share information. is that accurate? >> i would say yes. earlier this year, jay rockefeller, chairman of this hearing, along with nine -- along with diane feinstein addressed this issue with a bill. allowing security standards and the bill would empower the ftc and state attorney general's to againstvil penalties companies that fall short of the security requirement. with target as a poster child, we can expect rockefeller to make a strong push. >> thank you so much. lots more coming up on "in the loop." we will be right back in a few minutes. ♪ >> 56 is actually our, bloomberg is "on the markets." higher, durable goods coming out stronger for february than estimated. investment in business equipment fell over that same p

quantities and you can read about it in the new issue of "numbered as this week -- "bloomberg businessweekyou want to buy a soccer team? ac milan might be for sale. stay "in the loop." ♪ >> more and more companies from banks to advertising agencies are starting to pay attention to the millenial generation. a new brand has been designed with smartphones in mind what emphasis on going out. we are joined by the food and editor.ital futures great to see you. >> thank you for having me. >> this is nothing new in that we know the millenial's are a hard group to capture. respects,add in many bombarded with information right . how do you plan to capture them with your product? >> we are excited to create a site that is approachable, fun, and easy to access. a lot of our posts bridge the gap between entertainment and service. we might have content -- >> what does that mean exactly? >> we have a full spectrum of content where we have actually researched comedians to write for us. whose alias is boobs readily, she wrote a piece about how to become friends with your bartender. it is sarcastic. dying i

latesterg businessweek" cover story features gap's.cca they who wants to bring the brand back to simple fashion, t-shirts and jeans. is her strategy working? we are joined by customer growth partners president greg johnson and senior markets corresponding julie hyman who has been covering retailers. craig, let's start with you. how important is it to have y at the helm of style creation at gap? >> she will make a real difference. gap was on a strong role for going on two years, but that ebbed late this fall and has had a rough couple of months since that, but the new product is terrific. old navy and banana is a different story, but the product at gap is different eric >> julie hyman -- different. >> julie hyman, how did cap lose their way? >> they had a series of management changes. bringingmickey drexler in the right mix of merchandise for many years, but when he left in the early-2000, the brand lost its way and was focused operationally on cutting costs and has come back under glenn murphy, the current ceo. really, some of the sale

car in thewo wheeled newest edition of "bloomberg businessweek."oss may be complaining that march madness is killing productivity. ♪ >> the tournament is in full swing. before it is over, you will hear much about companies and using billions to people watching television and obsessing over brackets. one company says those assumptions are wrong. a company that places temporary candidates in jobs. they came up with some different results. >> we looked at morale. to benefitany can do from the cultural phenomenon of march madness and all the energy and momentum that builds and take that the workplace and embrace it. beat them,e of don't join them. to get into productivity and morale and camaraderie amongst individuals. it is a common thing that is going out there. >> march madness on its own may be fun, in order to make it productive, you have to embrace it and channel it into something? >> you can use it to put a contest together. put your employees in different brackets. the standards and use it as a reward. you can again stepping out of it as oppose