Complaineders have that it does not work. Mulally isalan replacing the in Car Technology with blackberries Technology Like barrys technology. Alan mulally first says no. Job. E microsoft now he is taking microsoft out of his cars. There are no details. People familiar with the companys plans. Ford has had real problems with the Microsoft Technology in its cars. Numberd lincoln ranked 26 and 27 out of 28 rands in the Consumer Reports survey because of these problems. It has been a thorn in Alan Mulallys side. If blackberry cant come in and save ford will ford can come in and save ford, ford will end an era of reliability air of reliability to blackberry. Qnx is the Software Company that blackberry bought in 2010. They make software that runs ,uclear plants, military drones it has to run things that cannot fail. It has been tested. Bulletproof stuff. Bmw used it. Volkswagen, audi, mercedesbenz. All of these systems are so much leaps and bounds better than fords system. What was wrong with the system . Nc offered you a lot of interesting possibilities as far as controls on the touch screen often times, it just did not work. Sometimes the screen would just blank out. Hugely frustrating. That was basically the problems. The time, your phone does not sync up as you would expect from the name. It was a problem and continues to be a real problem. It is such interesting timing. Right after alan mulally says no isthe job at microsoft, he able to ask the contract with that company. Well he is free to. Thank you so much. Matt miller on ford. Joining me now for more in at the mobile world conference is caroline hyde. We just mentioned that this is where all of these gadgets are unveiled. It is a huge deal in europe for a lot of the telecom companies. The whatsapp ceo was the highlight. He had one big announcement. He was adding voice service. Tell us what more he had to say. Yes, i was moderating the panel he was joining. The minute he walked on stage, a cheer went up. So desperate is everyone to be hearing from who is the new addition to Silicon Valleys billionaire club. The chief executive and cofounder of whatsapp. Just shy of half a billion users. Mark zuckerberg is paying 19 billion for the company. The whatsapp ceo remains very humbled. You will also be able to make calls as well. That was the key announcement. The first question i put to him was, did you ever envisage what is a very personal product, a product of his upbringing in the ukraine where you had very little privacy on phone calls and very expensive to talk abroad, that is what he came up with the principal did he think it would catch on to this extent . He said they are still amazed. The area of growth is all about the emerging markets now. Emerging markets indeed. Any other big teams come out so far . Themes come out so far . A key one is to do with privacy in large part. Many companies, mobile operators, App Developers, how can we really secure our data . Our data which we are tracking on our devices, are wearable the new whether it be bracelets, watches and how we customers comfortable that this is not being accessed by governments . The digitalo driving force for the European Commission and i asked her her take on the privacy views. We need to be active in giving not only one partner the policyy in taking their is the main policy, we have to combine our policies, we have to give people privacy. It is of extreme importance. We are active on that. Crucial that she feels that in europe they need to act together. Operators tomobile work with the App Developers to work with the Network Suppliers to come together and put in place regulations they can all enforce an area that we are far more involved than. In. Just to give you a sense of scale, 75,000 people are here today. , the ceorucial players of whatsapp and Mark Zuckerberg. I imagine that will be a standing room only crowd. Caroline hyde at the european at the mobile World Congress. Let me turn back to what is going on here in the u. S. It is merger monday. Mens wearhouse boosting its offer for joseph a bank. This is after joseph a bank said it was buying eddie bauer two weeks ago. Boosting itsse is offer to 63. 50 per share. That is contingent on the acquisition of eddie bauer clothing. It could increase the offer to 65 per share if it is able to conduct a limited due diligence. The original offer was 57. 50 per share in cash. It has boosted that offer, conditional on the acquisition of eddie bauer. This amended effort offer expires on march 12. These two companies have been back and forth on various attempts to buy each other. This is the latest shot slung across. Thank you so much. Scarlet fu there on mens wearhouse. Moving and shaking this hour, defense secretary chuck hagel who wants to cut the army to its smallest size since before world war ii the pentagon releases its proposed budget today. Hagel called for cutting the army from about 570,000 troops to as few as 440,000. He wants to eliminate the a10 attack planes for the air force. The budget is likely to run into and theon in Congress Defense department. We have a Great Program ahead for you today, including the former new york governor. With theined forces myspace cofounder to help you get a job. President onmer the run following last weeks violence. We will again with what is next for the country. Stay in the loop. The manhunt continues for former ukraine president Viktor Yanukovych. The interim government has issued an arrest warrant for him. The u. S. Is working with the European Union on a financial bailout and inviting russia to participate. Joining us now is republican congressman mike turner. He is also a top member of the House Armed Services committee. Also with us is our Bloomberg Contributor richard falkenrath. Also, peter cook. I want to get to our bloomberg correspondent on the ground in kiev. Start with what is going on right now on the ground. Give us the latest on this manhunt for the former president. Kiev is getting to normal. We see more cars. We see traffic jams, which tell us that the traffic is getting to a normal way of life. , it is a veryme tense situation. Also 24 hours of military groups and trolling the cities. They are keeping law and order in the city, they say. Hear unconfirmed reports that some occasional clashes during the night. Theyre working on forming the interim government. Theyre working on getting the aid package. Yes, the aid package which is now in question. The details are being ironed out right now. Thank you for joining us. Our news correspondent on the ground there. Commerce men, let me turn to you first. You are keeping your eye very closely on what is going on. Do you support and aid package . This is incredibly important. It is another example of the president s uncertain policies. This country was on its way to europe and joining our largest. Rading partner with the disruption of democracy, the president has not stood to ensure that this president has a country has a stable democracy and looks to the west. Putin has been playing to try to pull the Company Country in the other direction. The west needs to step up. As you say, there is a very precarious relationship with incidentst helped by like Edward Snowden come allowing him to come into moscow. If putin harbors another fugitive from justice, it will be a further problem in our relations. Ukraine is in a major transition. It has a major job ahead of it. They have to do with the fiscal imbalance and Macro Economic crisis. The United States will step up with everyone else to offer them an aid package. It will be conditioned on domestic Economic Reforms that are extremely painful, that did not get any easier as a result of these protests, and that Viktor Yanukovych shied away from. They will find out that it is a lot harder to protest in the depose and autocrat than run a country. States does not have much choice other than be involved, beyond this aid package. There is not a lot of leverage for the United States at this point. Money is one of the points. We have the treasury secretary jack lew calling top ukrainian officials, talking to the u. S. Support for an aid package, led by the imf, but supplemented as well directly by the United States and the European Union. As richard just said, the secretary also stressed that they want to see some reforms. The u. S. Does not have a whole lot of leverage to paul right now, other than rhetoric and financial support. It sounds like that for the administration is heading. Will congress be on board . One thing to put in focus is that this was a country that was on its way to the west, but for the meddling of putin trying to savage sabotage that. This was a hunter that was looking for a relationship with that you the eu. I think to respond to putins meddling is essential. You mentioned the president. Durban was dick on one of the sunday shows. I want to show you what he said. We have to combine our efforts with the European Union to help ukraine move forward in a peaceful, democratic way. We have to put the pressure on to stop putin undermining this Natural Evolution toward democracy. It does not sell my care is disagreement on both sides sound like there is disagreement on both sides on what to do. The president needs to be engaged. What does that mean . Has no plan, he has no real interest in how this is evolving, the concern of foot is happening to the people. Why is this our business . Why do we need to make it more of our business . We do have some interests here. The congressman is right. It hasne is in the lead been the Foreign Ministers of the major european states. Isnt that rightly so . I have no quarrel with it. I think our instruments of state are extremely limited. Putin nukovych and not to apologize he was democratically elect did elected and was the leader of a seriously divided country. Eastern ukraine is ethnically russian. If push came to shove, it is not clear they would decide to stay. We could definitely see a split. I feel like we have to avoid that. The issue of the president s uncertainty and Foreign Policy has given putin that impetus to move forward and metal. Meddle. Congressman, this is peter the, what do you see as risk of a Russian Military intervention at this point and what, if anything, could the u. S. Do to avoid that at this point . Is a greate, there concern that after the olympics that putin would feel he had a freer hand and would take military action. That would incredibly escalate the tensions between russia and the United States and with our european allies. I think the people in the ukraine, having taken the steps that they have, make some really difficult for him to do that. Like this. Book goes crimea and some of its people declare independence. Tries to restore control. S that is attacking say the government is attacking them and they respond with control. Chuck hagel is going to be releasing the budget for 2015. There was lots of speculation that our army will be cut to about 440,000 one of the smallest in decades. What do you know about these cuts . This is very concerning. They are still looking at the effects of the sequestration. The sequestration is over a 10 year the word period. They are trying to make tough choices. Jobs going to be congresss to move those numbers up. The world is not going to be a safer place. This is not time for us to retreat or cut our military. Thank you so much for joining us from ohio. And also to our contributing editor. And to our chief washington correspondent. You need a job, there is not cap for that. Now an app for that. A new venture that is launching today. It will be announced right here. What is the creator of one of the first social Media Networks think of Mark Zuckerberg . We will hear from him in a moment. You are watching in the loop live on bloomberg television. Good morning. I and betty liu. Bloomberg television is on the markets. Equity futures are trading higher. We close on higher within one point of the record for the s p. We are near those record highs. Some stocks that are moving, including comcast, netflix, on the news that netflix will be paying millions of dollars to comcast for more direct access to its Broadband Network. We will have much more on that. Here is a look at our Bloomberg Top headlines. New turmoil in egypt. The interim Prime Minister announcing that his cabinet has resigned. The surprise resignation comes amid a series of strikes, one by public transport workers and garbage collectors. Egypt will hold elections later this year. The mens and department. Mens wearhouse has boosted its offer for joseph a bank to 63. 50 per share. That is up six dollars from its previous offer. It wants the company. Here at home, it is all about the weather again. After a warmer than normal weekend, i was wearing short sleeves and no jacket, the polar vortex is making a comeback. A blast of freezing air is forecast. It threatens to bring nor snow to the northeast. Just when we thought it might have ended. Hase the Unemployment Rate steadily improved, finding a job remains a difficult feat. A new Online Service aims to facilitate the hiring process through the use of social media and tv and radio content. The Company Brought in the myspace cofounder joe abrams and the former new york governor david paterson. Network willnel its the former governor chief jobs officer. Great to have you both here with us. With you. Let me start what is that exactly mean . I havent the slightest idea. [laughter] we are in trouble. The point is that jobs are like the weather. Everyone talks about them. But the man who founded this have notound that we really changed the way that we recruit people for jobs. The employerslped or those seeking employment in over 50 years. Platform a technology which is onestop shopping. Theoretically, the thought basis of what Federal Express did with packages, bringing them all to one place and then farming them out, and creating that proper form platform to enhance the ability of corporations, companies, individuals, even people who are working and just want to see what the market would hold should they try to change jobs. That is what i would be been theng having governor of a state during the worst recession and having seen the job losses and all the states. It is something that is exciting for me to work on. I think about a company like linkedin, where they say the same thing. Shop. Re the onestop employers and employees and people looking for jobs are all going to be there looking on the same platform. How was this different . Were approaching things differently. We are looking at a situation when we started to look at the market several years ago, about 80 of the jobs go unfilled at the recruiter level. A recruiter gets a job order from a company and they are unable to fill it about 80 of the time. 80 . That is because the companies go to one or two or several recruiters. They do not want to have fee agreements with 100 different recruiters. The put the job out there. What we are looking to do is create an electronic marketplace where employers and recruiters can go and, rather than the company having to do fee agreements with 10 or 15 recruiters, they do if the a feeent with us agreement with us and a coauthor in network and we have strategic arrangements with a lot of recruiting firms and recruiters. Ave we allow a higher fill rate by allowing companies to use other recruiters simply. How will you make money on this . We are transactionalbased. We take a small percentage of the recruiting free fee. But the employers will go on the website for free. If you are just working with a few recruiters with a massive amount of information that exists, you are recruiting in the dark. This is a way to bring all of these tentacles to the same table and then you can see the entire marketplace. How do you draw in the applicants . What about drawing in the applicants . The applicants come from the recruiters themselves were the applicants will come through other strategic relationships that we have with other job related sites. Is this really the problem . About not being able to find employees to fill certain jobs . Or, as we have heard many times, it is a much deeper problem . Is it about a skills gap . A training gap . There is no doubt that there are aret 3. 5 million jobs that available in this country that americans are not qualified for. An internationallybased company. We will be recruiting overseas as well. That is something that needs to be addressed. Our educational system is not teaching to the jobs that are available. That is a bigger problem than all. People are coming out of college right now with sociology degrees, Political Science degrees, they make 40,000 per year doing something unrelated in a fieldeople work unrelated. You were in politics, that paid off. Yes, but i was a history major. [laughter] you have people working 40,000 jobs with 80,000 student loans. This generation is pilloried without respect. , what joee time pointed out earlier, is that the research that went into founding and joe once told me it took them 12 years to become an overnight sensation, the fact is that we have realized that just the technique of getting the right person into the right place is so antiquated, so obsolete in this country that it needs redress and that is what we are attempting to do. We are going to talk more about this. I want to talk about the growth of jobs in the tech industry. A job industry that you know quite a bit about that, joe. We will be back with the former new york governor and the myspace cofounder in just a moment. 19 billion dollars for whatsapp. His facebooks strategy of buying the competition sustainable . From one billionaire to the next. Jeff bezos is playing catchup. Much more on that story. Five days. That is along the took mark forerberg to ink the deal 19 billion to buy whatsapp. It is the most expensive purchase and more than a decade for an internet company. Whether buying out the company at a premium is in question. Facebook, joes of abrams, one of the cofounders of space i want to clarify, you were with the company intermix that funded and started myspace. Thats correct. Myspace was growing like gangbusters and grew and fell almost as quickly as a grew. When you look at 19 billion for whatsapp, do you say history could repeat itself . Nobody can predict and it is a very fast changing environment. 1983. My first startup in these days it seems like months are a long time. Exactly. You really never know. And my experience, what you are really trying to get at the end of the day is distribution. You are trying to get eyeballs. Then the burden is on the company to always refresh its content and the way in which consumers are using its application. It is interesting. They have one million eyeballs per month going on to whatsapp. I believe. When it was announced that facebook was taking over, some of those eyeballs decided to leave. You always have that in this business. My First Company was a computer Software Company. We were considered heretics in 1983 because we were selling our software. 1980s, the early software was given away free, sponsored by the government and the universities. The idea of a commercial Software Company was revolutionary. In 1989, the idea of a paid for app was considered to be antisocial. I think over time, people have realized that the way in which Technology Advances is by investment and investment is made by companies receiving revenue. Governor, both of those companies are based in california. Yet this is more growth for the city, for the state, and for jobs. Every single state, every governor wants to bring new tech companies, startups. One person wants to make st. Louis the next big how do you really compete . How do you make that attractive . The biggest mistake that states make is that they seek out a highend companies. It is a great press conference, it is very exciting. It is actually the startups that build a job network and inevitably build their economy. I remember in 1980, paying to watch television seemed impossible. We are doing it right now. That is very true. It is incredible how behavior changes. Are you surprised that here in new york and particularly new york city that it has become the next Silicon Valley . The companies have come here and headquartered . I am surprised that it did not happen sooner. New york city is heavily dependent on the Financial Services industry. The Manufacturing Industry in upstate new york been falling since the 1980s. I was surprised that we did not exert the kind of creativity that made new york such a hub for Economic Development in the 19th and 20th centuries, in the 20th 21st century. What do you think took so long . Reliance on the fact that these other markets were coming back instead of raving the future, as they did when they built the lackawanna radio and construct railroad and constructed the erie canal. Population and created new york as the epicenter for shipping and rail and freight travel. But that was a dream that became a reality. Somewhere we became dependent on it and lost that sense of trying to move to the next level. At the on the board school of business at the university of rochester. When i started doing work there maybe 15 years ago, the number is inb situation investment banking. Over the last 15 years, things have changed. When i go back there, the number one thing people want to be our entrepreneurs. Isnt that interesting . I dont know if it was magnified by the financial crisis. Right. Responded tosity the students and now there are joint programs and entrepreneurship with the medical school and with the engineering school. Do you think that you would be able to start the same company that you did back in the 1980s now . Would it be easier . I think it is actually easier today. I think Technology Enables people to do what whatsapp has done. I will say that in my experience nobody that i have ever seen be successful has started the company in order to make money. Everybody wants to make money. You have to love what you do, you have to look for an innovative idea, you have to work incredibly hard, you have to be incredibly lucky. [laughter] still, i think more and more people want to do that than ever before. Technology enables it. It enables a 15 Person Company to become a huge company. Thank you so much for joining us. Joe abrams, who helped cofound abrams myspace. David patterson, thank you for joining us as well. Be 2014, but may it pays to be retro. We get behind the wheel of one companies that is cashing in. Breaking news. Has just written an open letter to ebays shareholders. More gan joins us with more. This is an open letter to shareholders. He is criticizing the board, pacific lee to members of the board specifically to members of the board. He goes on to urge ebay shareholders to vote for his support two separate paypal from ebay. Extend the message to management that shareholders want these companies separated. We will have much more on this developing story. Carl icahn will be joining me at three clock p. M. On street smart to discuss it. Thank you so much. Carl icahn on her Program Later this afternoon. Lets switch gears for a moment literally. Major carmakers have nothing on Detroit House newcomer at qwest equus. This car both modern suspension and technology. Matt miller has more on the auto throwback to the 60s. And may be 2014, but from the looks of cars hitting the road, the 1960s about in full swing. It is a trend that has persisted for years. It is more powerful than ever before. This is a brandnew porsche. The thing that people are excited about is the styling. It has the silver roll bar that harkens back to the original back in 1965. Chrysler has taken the design cues from the 62 guatemala level, giving this Dodge Challenger a shaker Cold Air Intake as a factory option. There was one automaker whose 1960s styling is a cut above the rest. Is it a camaro . Is that a mustang . No, it is an equus. A mashup of the most important muscle cars ever to come out of the 1960s. This is the 770. It cost 250,000. Not the supercharged engine that really is the star of this car. The owner wanted to create something that was limited and ultra highend in performance. Everything is fully customizable, from the interior to the exterior. Carbon ceramic rakes from for ari breaks from ferrari. It is hand built here in detroit. They have sold about 20. They only plan on making 100 this year. It will be truly exclusive. While one of these soupedup new 1960s style supercars will cost you a quarter of a Million Dollars, an original american muscle car will cost you about the same now or even more. Yet another card to add to matt millers collection. I wish. Who is behind it . The company is super secretive. They always say it is a european businessman and they did not expand much further. If you do a little digging, you find this character. There is some strange connection to a nigerian soap detergent company. It is a really weird story. Apparently he is a millionaire car collector based in paris who loves american muscle. Very mysterious. That adds to the mystique of this car. It is a quarter of a Million Dollars . It seems like a little much. Everything is custom. They have the big new corvette engine, the ferrari breaks. Would you pay that much for it . I cant imagine spending it. They do not look 100 finished. They are not perfect. The lines are not exactly right. I dont think i would fork out a quarter of a Million Dollars. Carmakers have been doing this for a decade. Ford started when it did the retro mustang. Gm followed suit with the camaro. You have the charger and the challenger. You now have european makes getting into it with porsche doing a throwback. It really is just the greatest period of design at least for american cars. There is nothing like it. You mayopean cars prefer different eras, i still would prefer a 1960s. It is unbeatable. The art of the design. Great to talk with you always about cars, matt miller. Still ahead, more on the breaking news just moments ago. Carl icahn very vocal about spinning off paypal from ebay. More on his open letter to shareholders. Dont miss the exclusive interview on street smart at 3 00 p. M. Bloomberg television is on the markets. Equity futures are heading toward record territory. With an open letter to ebay shareholders, forcing the spinoff of paypal from ebay. This is in the loop with betty liu. The countdown begins right now. Here is what we are working on. The ukraines interim government has issued an arrest warrant for former president Viktor Yanukovych. Indicating that stocks will open higher this morning, heading yet toward a record. Netflix will pay up for more direct access to comcasts Broadband Network. According to three people familiar with the matter. Back to the breaking news we have moments ago. Carl icahn is very vocal in his desire to have ebay spin off its paypal unit. He has written an open letter to the shareholders of ebay that they need to do this, they need to vote for this. Trish regan joins us. He came out with an open letter on his website. Urging investors to not only alsofor his proposal, but to change up the board at ebay. There is an annual meeting this april. Four Board Members are up to read he would like to see two of his people. How is it possible for the current board to engage in any meaningful discussions about longterm shareholder value while at least two Board Members are directly competing with ebay , one board member is directing that he bases hiring the most talented employees, another board member is funding , and at least two Board Members appeared to have put their own financial gain in ongoing conflict with their fiduciary responsibilities to stockholders, and the ceo seems to be completely asleep . Some interesting choice of words there from carl icahn. He goes on to talk about Mark Andreessen. He purchased skype from ebay and then sold it for a big premium. He mentioned that he has invested in five competitors to paypal, Online Mobile payment systems. He points to scott cook, the alsor ceo of intuit, who had some conflicts and has, apparently, advised or asked ebay not to hire people from intuit. There are interesting things in this letter, as well as urging shareholders to vote for his proposal in april. Tell us a little bit more about this proposal. You say it is nonbinding. This would be a nonbinding vote, but it would send a message to management, if shareholders say we like this idea. This idea of paypal being spun off from ebay so much so that we are willing to vote on this proposal for it. Nonbinding, would not require the company to do it at all, but maybe it would send a message. I spoke with them must week on street smart. We talked about this very issue. Here is a listen. We look at how ebay and paypal can be most successful. The board and i continue to believe that the best way is together. Stronger makes paypal that it makes paypal stronger by helping it grow faster, it provides more data, it provides a Strong Financial foundation paypalll ultimately make more successful as part of ebay then separate. Quitel icahn disagreeing strongly. At 3 00 p. M. More today on street smart. Thank you so much. Trish regan of street smart. Some of the top stories. Herbalife is a candidate for a buyout. Our investors willing to bet that bill ackman is wrong . Calls the Nutritional Supplement company a pyramid scheme. It offers private equity firms substantial cash flow to pay off debt. Herbalife is not commenting. Tumbled. Prices have it is having technical problems. 151 on oneg for exchange. The takeover in battle involving mens wearhouse and joseph a bank. It will raise it even more if joseph a bank drops its takeover bid for eddie bauer. This began in october when joseph a bank offered to buy mens wearhouse. Hagele secretary chuck will release details of the pentagons aja plan later today. The proposal to reduce the size of the u. S. Army is already coming under fire. Peter cook joins us now. Hagel should be ready for some pushback. We heard from congressman mike turner this morning. That is right. A preview of what is to come from chuck hagel. A variety of forces from capitol hill. He will try to sell it on capitol hill. Decembert deal back in , a continuation of sequestration, forcing hagel into tough choices. This budget represents the administrations best use of shrinking defense dollars. Here are the highlights. The topline number 498 billion. He cannot go beyond that. He will propose to reduce the u. S. Army troop levels to 440,000 from the current 480,000. That is the lowest we have seen since world war ii. Two spy planes would be terminated. 1 ompensation increase of and significant benefit changes, including Housing Allowance changes, the benefit reductions over time, and there are some winners. The f 35 among them. It will be controversial up on the hill. What can we expect from congress . They absolutely will make changes. That is the history here. The Defense Department proposes and then Congress Makes changes. Dont be surprised to see changes to the troop levels and compensation changes. Changes toation active duty military personnel will get the biggest pushback. Chuck hagel will have a sales job on his hands. Thank you so much. We will be back in a few minutes. We have been reporting live from the mobile World Congress in barcelona. Companies are unveiling latest devices. Apple does not participate. Joining me now with his expectations. . Reg, what strikes your fancy ee things seen thr that have caught my eye. What is coming from nokia. X. S is the xl, this is the these two funds are interesting. They will run android apps. It is not the lumia. If its in between. It is affordable. The other one i found very interesting sure. Go ahead, greg. The other one i found interesting was this one from sony. 2. Is is the xperia camera. 4k video it also has a very interesting noise reduction headphone that you contact onto it. If you have a noisy environment, you can have the bulky headphones. It will be out in march or so. The final one that i really found very interesting yes, betty . We dont have that much time. I wanted to get to the other topic on the floor, the buzz around Mark Zuckerberg and what. S next for social media what are you hearing . He is not speaking for another couple of hours. We do not know what he is going to say. There is a lot of discussion about social media and how it ties in. This phone, you can have all your messaging appear. These platforms are designed for messaging. It does not use the power. It is on all the time. Devices,look at these a watch, a phone with a dual screen, the social messaging i think we will see a lot of that. Messaging is a big deal. Thank you so much for joining us. You seem like you are really into what is going on there. Gregg harper, the ceo of harper vision. Coming up, comcast is in dealmaking mode. The company has now inked a deal with netflix. Much more on that. Two companies we are watching. Netflix on comcast. Netflix will pay comcast for access to its Broadband Network to speed up streaming. I want to bring up our media investing reporter and also ed lee. Ed, lets start with you. Netflix will pay millions of dollars, even more . Even more. They were paying other providers. Isp. Ix has their own they were paying somebody to get traffic across the internet. Faster toll get comcast customers. Hopefully speeds will be faster. What comcast is getting from netflix is what no one has revealed the actual numbers, but it will be this is them cutting out the middleman . This is been under discussion for six months or more and it comes at a propitious times. Asmakes comcast look good the ftc and fcc are looking at the merger with time warner cable. It is curious timing. Why would netflix not want to hold off on the steel this deal . The thing of it is is that there is Something Else that netflix wants. Pp towant the netflix a be on the comcast box. They want tohing happen. They want to have the app on the set top box. This is critical. What happens to payperview if you can get for 7. 99 10,000 movies from netflix . All of this is driven by speed. Customers are having a harder time. There have been serious problems. I have had problems with netflix. The internet is managed by a whole series of other Third Party Companies that consumers do not know about. Companiesose content work with these companies, the way you route your traffic could have a huge difference in how could consumers see it. A lot of times it is not even the isps that are necessarily the factors. One of the biggest middleman for netflix is amazon. A really . Because amazon has so many other businesses, including the prime. Content Distribution Networks and their servers are as big as anybodys in the world. In a unique position, where they are servicing netflix, but also competing. Very seriously. They just bought a u. K. Version of netflix. Some are saying that this is another salvo that amazon is lobbying against netflix. The u. K. Is a prime market for netflix. Has spikedith amazon the growth that netflix was looking for in the u. K. Raised money for growth internationally they need that money for content acquisition. The other problem is that in the u. K. And europe, paid Television Market is not as built out as it is in the United States. It is more palatable for everyone over there for the streaming services. Isnt netflix still winning the game here . Doesnt amazon still have a lot of catching up to do . The thing that amazon will soon have is a set top box. That is part of the problem that netflix has right now. Short of them having their own set top ox, the need to work out these deals with everyone else. Not see a netflix app on an amazon set top box. You have to figure that will be a negotiation. There is another thing missing from the netflix negotiation. It is called prophets. Their content costs are going through the roof. Have offbalance sheet liabilities approaching 10 billion over the next three years for content. Motheron is not making money either. It is profitable because it is part of the amazon prime package. They throw the video and movies in for free with the Free Shipping on amazon prime. Next year, they will be bigger than netflix in terms of subscribers. Great to see you. Lee. R and ed still ahead, much more on carl icahn and the open letter to ebay shareholders. Ebay has responded. Much more. Welcome back. It is 26 minutes past the hour. Bloomberg television is on the markets. Scarlet fu has the latest on futures. We are mixed. We are mixed. Futures are indicating a higher opening for u. S. Markets. The s p 500 within 1 of its alltime high. European stocks have changed a little. Emerging markets down by 0. 25 overall. The real story is in china. Chinese banks are curbing loans to the Real Estate Industry and that is having an effect on copper prices. We are on the markets again in 30 minutes. We are on the markets again in 30 minutes. Lets count on the top 10 trades. Scarlet stays and julie hyman joins in. Immunity as part of the global investigation of currency markets. They aim to be the first bank to report its own conduct in currency markets to regulators. The ceos sands said he was ready to make a big investment in japan and do whatever it takes. They are hoping to win a casino license in that country. Number eight is united technologies. They will lay off 600 workers over its helicopter unit. The job cuts archer beaded to changing economic conditions. Netflix has agreed to pay for more direct access to comcasts brought and Broadband Network. Netflix announced a multiyear agreement with comcast in a statement yesterday. Number six is hsbc. Missed estimates. Be impacted by greater volatility in emerging markets this year. Number five is blackberry. A vote of confidence from ford. Use qnx. Ford has more than 7 Million People vehicles on the road they use for second rated software. Verizon communications forecast higher Profit Margins this year. Following the 130 billion dollar acquisition and full control of its mobile home unit phone unit held by vodafone. Number three, joseph a bank. Mens wearhouse raising the bid for its rival retailer. It will up the price even more if joseph a bank terminates a separate deal to buy eddie bauer. Rf micro two is devices. The combination is expected to result in cost savings. Number one is ebay. For icahn has been calling ebay to spin off paypal. He asked shareholders to vote in favor of the split. He will join street smart anchor trish regan exclusively at 3 00 p. M. Eastern. You do not want to miss that interview. Coming up, the internet that boastsvice more users than apple tv. Much more on that story in a moment. Activist investor carl icahn wrote an open letter to ebay investors to have the company spin off its paypal unit. Ebay has responded. Trish regan has been going over this. Issued an open letter this morning urging shareholders to vote for his proposal was would be nonbinding. It would send a message to management that shareholders want the company to be split up. He urged shareholders to vote for the boardcks and to move Mark Andreessen and scott cook off the board. He cited their complex of interest, one of which was the skype deal that Mark Andreessen had a skit have a stake in. We have a letter from ebay responding to to what mr. Icahn said. For example, in terms of defending theskype deal, the board determined because of these limited synergies, it would be in the best longerterm interest of stockholders to explore a divestiture of skype. They said this was the best thing to do for the company. Regarding scott cook they say the overlap and accusation is because scott cook was ceo of intuit there was a conflict there in terms of hiring. Regarding hiring whats interesting here is that john donahoe, the ceo of ebay, he was on the show a week ago, he had a conciliatory relationship with carl icahn. It seems like this deteriorated. Carl icahn was very aggressive in his letter and ebay was aggressive in the response. Say mudslinging attacks and it looks like they are firing back in their dissent. I what did carl icahn describe donahoe . He questioned whether he was asleep at the switch. He was asking why you would have Board Members that have these perceived conflicts. Its an interesting drama unfolding. I will talk to carl icahn at 3 00 so we will have lots of questions for him. Thank you so much. Tune into that interview on street smart at 3 00. Isle tv rival roku considering an ipo this year. Its devices connectivity to the internet and are giving the cable guys a run for their money. Many people are trying to break this cabletv model. Jon erlichman broke that story and joins us from l. A. What is the likelihood r that thisoku ipo could happen . I spoken to several people with direct knowledge. They have not made a final decision, they have been thinking about this. They have hired a lead banker to potentially lead an ipo but they have spoken to bankers. Its less about getting access to cash. Venturese a lot through capitalist and is more about what is happening in this area and the ability to stand out. Roku devices have been pretty successful. Of differenta lot players coming into this market to take advantage of this streaming phenomenon whether it is apple tv or google has Google Chrome. Consoles likeng xbox that is used for streaming and there is some buzz that amazon will get into this as well. Perspective,crew this company can say look at the landscape. Say we could be the pure play on this interesting trend. It makes for an interesting investors story. Moreple wants to get aggressive and amazon is entering this market so what is left for roku . Them thatd question before and the ceo makes the argument that if more companies have come into this market, it has helped them. When google launched from cast, the rolu sales went up. They said more people are aware. There is a certain amount of familiarity that is required for this market to continue to take off. That was good news but lets assume that more competition were to hurt roku but the company is making the argument that it can license its technology to others that want to be in this business. Think of the smart tv manufacturers that want to make sure you are still buying their fancy products. Potentially give apple tv or Google Chrome cast a run for their money by having their own offering and some of them are partnering with roku to get their operating system and that is potentially a business that could be larger from them selling little boxes. Thats an important part of the business that maybe gets less attention but could fuel them going forward. You about thisll other story so stay with me. Parkerk cofounder sean is taking on the gossip columnists. This is sean parker. He made his name with music sharing service napster and now he is worth 5 billion. Website rant over at a because there was a story in which his neighbors were upset because they blamed him for turning the entire block in new york into a snow bank so he could get verizon files installed in his home. He says the gossip columns got the story wrong. Thinkawker how do you think gawker will react to being called names . You can count on reading more sean parker items. Gossip inw, with l. A. , people who read this story will say another spoiled tech billionaire brett. B rat. Didnt you check out his digs in new york . He had his famous wedding which was a little on the strange side. He puts himself out there may be differently than some of the morgue guarded tech ceos and is a little bit more plot flamboyant than Mark Zuckerberg. He is calling for a little bit. We were at a party at his house and i did take lots of photos but im afraid to even tweet them because i might be sued by sean parker. Fair enough. Thanks so much. Country in need of 35 billion in a new president so what happens next in ukraine . Stay in the loop. Time for our global outlook. The ukraine interim government has issued an arrest warrant for kovich. Nt yanu lets go straight to key a kiev. Tell us the latest on the manhunt but also the transition in ukraine . [indiscernible] can you hear me . I can hear you. Tell us what is going on on the ground not only with the manhunt but also the transition in the ukraine government . The city is getting back to normal life more or less. We see more cars and some traffic jams and the streets of kiev. Thereependence square, are protester camps and people here are Gathering Signatures for a petition for new authorities asking them to come back to Independence Square and have consultations with the people. On a new appointment. People on the square seem to be authoritieshat the are making decisions without having permanent consultations with the people. They are the real power here. Happyeem not to be very that people who have been part ovich power before yanuk are back in power. Time, the government will be holding invitations with european parliamentarians. They are seeking Financial Aid from the eu. Issued the arrest werent for the expresident yanukovich. Who may merge as a new face . You mentioned people want new faces in leadership in power. Who may emerge . The problem here is that they want new faces that they dont know what new faces to propose. Its just a general message from the streets oof kiev to the authorities is to bring in people who were fighting for and fighting for all those minds. They want to see those people who may know from this. Emergedanders who , they these three months did not pick a Single Person to say this is our candidate. Are just throwing in the air the general demand for new faces for new people. It is not clear who they want to see in the government. Happening as the eu and the United States put together a bailout package for the ukraine. Thank you. The dramatic Political Developments in the ukraine have overshadowed that at the heart of their problems are financial needs. They need to do painful reform and Michael Mckee is joining us. Take us back economically to how all of this happened. It started over alull a takenspends more than and it needed additional money to pay on the bonds it has sold internationally. It went to the eu. They have been trying for some time to integrate more closely with the European Union. Unfortunately, there are difficulties because of the ukrainian economy, the ukrainian background, and the political difficulties of russia. It has not worked out. The terms the eu wanted to impose along with the imf were significant reforms of the economy. Ukovich did not want to do that so he turned to the russians. He said that they said they would give them the money without conditions and that upset people wanted to be prowestern. What about the bailout . It will be the eu and United States but should the imf be involved . They are leading it. The ukraine needs to in reform the economy tremendously. They never reformed after the berlin wall came down in a way that poland did. They relied on soviet air industries and did not modernize and used soviet subsidies to keep that going. The ukraine per capita gdp versus poland and the United States. They have made no progress in those 20 years. The choice is going with russia and continuing that arrangement or go with United States and the imf and reform your economy. It will be painful to do. The politicians are not anxious to embrace that. Note, the g 20r met in australia and they are about to raise their Global Growth forecast . They came out with a proposal , a pledge, as it were, to raise Global Growth by two Percentage Points over the next five years over what it would have been which is around four percent. They are looking to boost that to add to the global economy. The trouble is, it is not going to happen. They cannot specify how they will do it. There are problems with the three biggest economies. The u. S. Congress will not approve additional spending so barack obama may say he wants to do this but he will not be able to. In the u. K. , austerity seems to be working. They are not going to want to propose any additional spending. In the eu, they are still struggling and they will not have the ability to spend anymore. Thank you so much. Also, in egypt, shakeup in the government as the country per pairs for president ial elections this year. Cabinete ministers submitted resignations today and there is speculation that the egyptian powerful defense minister may run for president. He ousted resident Mohammed Morsi last summer. In rio de janeiro, theyre getting ready for the pre lent festival known as carnival. Two religions held a cleansing ritual in a radio. In rio. Carnival begins friday. The s p 500 has just hit a record high. It erased all of its 2014 losses. Keep your eye on the markets. Tomorrow on in the loop, we will have congressman Antonio Cardenas and head of the newly minted spanish minority district rising unemployment, the economy, and what he is working on in washington. Bloomberg television is on the markets. We are about dirty minutes into the trading day. The s p 500 is setting a new alltime high. It is currently at 1850. 97 and the s p 500 is now positive for the year. Its time for futures in focus and we are looking at natural gas futures that rose to a fiveyear high this morning. Heating fuel has been getting support from low inventories and forecast a more cold weather is on the way. We are joined now by greg bender. Is still driving natural gas . Its a combination of the cold Weather Forecast them a colder than normal winter, even with the warm weather this past week . Yes, we have an updated forecast and theyre looking at Colder Weather this week. There is the drawing inventories that dont seem to be getting replenished. Another thing to remember is that the cold Weather Forecasts are volatile. We had just make an intraday 56 nd reversed down . 50. Traders are definitely trading on a much shorter timeframe. , is thisis volatility on the back of more or less volume . Inmore volume and not just futures but also in the derivatives. The natural gas etf is seeing more volume and options on that etf in the futures itself are also seeing a lot of volume. Its not necessarily a risk fleet play but a lower risk play. You mentioned traders are using shorter time frames but we are on the cusp of spring. We need to look ahead to the summer where there is lots of disruptive weather. What are people and traders ofing about the possibility summer hurricanes and that disrupting inventory . If you look at the open interest in the futures contract, march is coming off the board wednesday, most of the role has occurred in the april contract and beyond that, the next outlier is sober which is in the middle of hurricane season. Traders are not only trading the marchapril spread and the april out right futures but they are also trading the apriloctober spread which is the spot relative to the hurricane feature. We have march futures expiring on wednesday. What do you expect to happen on thursday . I think traders are looking at either a lower risk entry point to join these bullish trends. We saw that two weeks ago where we went down to 4. 50 which was the old resistance. I dont expect to see much buying at these levels. We are at fiveyear highs. On the support level, i think we will see maybe about four dollars 75 in the april contract which is a high from a couple of weeks ago. You dont think we will get back to 4. 50 . It is hard to say. The trend is definitely will is right now. There are traders looking to fade this move and trade the spread. Thank you so much. On the markets we areon the 30kets once again in minutes and Market Makers is next. From bloomberg World Headquarters in new york, this is Market Makers. The facebook hangover is over and the window for tech ipos is wide open. Investors are hungry. Is there a race to the Public Markets . Pollution, traffic, all reasons not to drive. We will debate the theory of peak cars and its impact on detroit. New process a center. Why they are shielding their most viable data behind