Tax cuts for families. Phil mattingly is here with more details on the budget. Give us highlights. Click that is right. We know a couple of things before it is officially released. 56 billion in new spending in this budget, a lot of it based on infrastructure, Early Childhood education. The white house is focused on the expansion of the tax credit, to expanded for lower income adults without children. That appeals to republicans, most notably senator marco rubio. The administration is hoping there might be some bipartisanship going forward. There is a notable absence of changes to entitlement programs. This is something they were willing to be flexible on. Why this . That is right. There are no major changes to entitlement programs. They addressed social security. Branch ton olive republicans. The main reason his house and Senate Democrats said to take it out. This is a major Election Year and we do not think this should be in any type of policy baseline. That is gone and officials tell me it will be back on the table if republicans want to negotiate but it is missing from the budget. Is this more policy or politics . It is an Election Year. We look at it through a lyrical lance. Thing they are trying to set up is the fight on equality. Paul ryan laid out a 200 page report calling into question the war on poverty yesterday. Today is the see administration laying out key points it thinks will adjusts in an Election Year, how they will work towards reducing the inequality gap to republicans will counter right back with conservative principles, saying, these are the ways we will do it. Thank you. Vladimir putin in the political spotlight, announcing he has no intentions of adding to russian and he will not fight the ukrainian people. No military action. For more on the political standoff, ryan is joining us on the phone from the ukraine. Thisig of a retreat does present from his prior stance . It does not represent a retreat. He does not intend to escalate right now. No reason to send troops to the ukraine just yet. Needhe means is he sees no to sandwich routes into Eastern Ukraine right now. They are already in the ukraine. Russia believes that artie has the right to have troops there because it has military bases there. He said sending troops into the ukraine would only be done in extra in an extreme case. He said russians have no intentions of fighting ukrainians. He doesreal indication not mean to take this any further than he already has. Quite frankly, before he made those comments, those for his first uggla comments since the crisis began, no one knew what he would do next. No one did. Viktor yanukovych is still the president of ukraine. What is the significance of that statement . Very significant. It is a way of justifying russias presence in the ukraine. The russians have said president toukovych asked for them intervene militarily in the ukraine. If they believe he is a legitimate president still, and he asked them to intervene on behalf of ukrainians for him, they think they are in the right. They said as much yesterday at the security council. What is different about today is today is the first time we heard from president putin himself on the matter. Very true. Thank you. From equities to oil. They are higher today. They are rebounding. Perhaps the easing of immediate pressure in russia over the ukraine. Still aterm outlook is threat to Vladimir Putin and his economy. The drop yesterday of the , it wipedock market out more wealth than the sochi olympics cost. That is an issue for Vladimir Putin and underscores the high stakes he faces. Russia needs to attract capital, not repel it. Countrys economy has been slowing significantly, now growing just over one percent. Very close to recession. There are odds of about 40 by analysts in russia that russia will slip into a recession in 2000 14. Yesterday, it was reported manufacturing slowed for a fourth consecutive month. Plunge makes it likely they will get much higher inflation because of imported goods. They will cost more. Threatens the banks. About a 6 million loss according to the central bank. Yesterday to combat that, Interest Rates were raised. That will weigh on the economy. A small current account surplus which is likely to go into deficit as well. Russia is ofat to course oil prices. The government spends about 25 of gdp and to keep the budget in balance, Capital Economics needs 100 10rice of about per barrel. They are able to get that just barely but as american fracking increases the amount of supply in the world, their chances of getting that are going down. A rush road ahead rough road at thisr the economy point. If it is such a rough road and all the weakness, why is he risking this . Pretend to want to tell you what he is thinking, but maybe it is shortterm here. Compared to where the u. S. Is. Russia has a large amount of Foreign Exchange reserves. They can pay their bills for now even as the current account goes negative. Resident who may be gambling if this lasts a short time, they could get in and get out without any further consequences, it is worth the risk. Thank you. Mike mckee. Ofturn to another region uncertainty. President obama met with netanyahu at the white house yesterday. Closelyries that work in the past and he looks cooked looks forward to working with the president to look for a way to keep Nuclear Weapons out of the hands of iran. Tension between the two continues to be how to establish between the two states. Ceoess this morning is the who has funded over 100 Israeli Companies based in jerusalem and to brought Many Companies the nasdaq. You are a berkeley graduate. I want you to weigh in first on the political uncertainty. Tensions, how do these Companies Start up . How do you continue business . Israel is an oasis of stability. You look up the road in syria and there have been 100 50,000 people murdered over the last couple of years, 7 million refugees. It is insane. In israel, the economy is booming, typically four percent. Lastve a startup economy, year was 2. 2 billion invested in israeli startups. There were 6. 7 billion of exits. 5 billion exits over the last 14 months. Companies went public just doubled last week on its offering, now i billion dollar company. Companies bought by google. It continues to be very bullish. We live in a tool world, with x essential risk. We have issues with the palestinians and the iranians, but on the other hand, we have a partnership and a friendship with america, in particular with the innovation sector. Valley andt silicon tech titans are relying increasingly on israeli technology. Isdo you find because there the risk that always hangs over, israel in one way or another, and i enter stand what youre saying about an oasis of stability, that that is a reason why you see more startups and morons but nor is . Yes. The reality is, the risk of starting a company and losing money for an investor, a big deal. I am not being cavalier. The reality is we live with x essential risk. Life is short. If you are not taking risk in the innovation business, youre not in it. Competent risky country and we innovate. People believe the possible can be made possible. Merrick was happening our own lives. The startups happening in israel are changing the world. What is hot right now . That is being brought here to the u. S. . Medical devices. Companies actually creating glasses the blind see. We have a company, surgical theater, which lets surgeons practice brain surgery. To solve the problem of diagnosis for malaria. How will that compete with startups in the u. S. . They cooperate or they get bought. What happens is israel innovates and then last year, 80 Different Companies were purchased by american companies. , orave become the farm team the incubator, for innovation with these ideas. Get start them and purchased by multinationals. We will talk about that startup culture and how it is exported and imported for many around the world. Warren buffett, whose newspaper business is not Generating Positive headlines, 28 newspapers dropped last year. His idea that they would be crucial sources of local information with few competitors buffett does not appear to have come up with a Solid Digital strategy yet and he faces the same problems that affect the entire industry. Brett newspaper revenue has fallen by one third since 2005. Coming up, we will find out what plus,ercedes sedan another type of vehicle you will never get to drive because the prototype armored truck is driverless. We are just Getting Started on this tuesday. In there watching loop. 19 billion, we are still talking about the price facebook paid for whatsapp. Service according to Mark Zuckerberg is worth even more than that. Were back to the man who is no stranger to valuing companies. John, what did you think when you saw the headline . I thought it was a great time to be a tech investor. You have got to love it. More value than sony corporation. An incredible service. A gutsy move by facebook. It worth it . It could be. It depends on how they play it out and what they do with it. If you have been betting against facebook, as a lot of people did, you have been betting wrong. Smart. Uys are very mark and Sheryl Sandberg are some of the smartest people in the business. I think they know what they are doing. Billion andbout 19 that the company was started only three years ago and we read the headlines and think, it is so easy to get to 19 billion. But it is really difficult. You have helped Companies Reach valuations of 100 million or more and that is hard. Really hard. Oftakes an enormous amount determination and courage and ability to accept risk. What is exciting now is many Tech Companies are not just Bubble Companies and not just creating false start ua shins. They are creating Real Services with real value and revenues and profits. What were looking at in our portfolio, we do crowd funding where we allow accredited investors to come in and pick the next whatsapp and invest their money. We look for companies that actually have traction. Everyone is looking for that. Classes very competitive. There are a lot of entrepreneurs. It has become part of the culture. Everyone wants to be a founder and a lot of people are taking that risk. They are. As your investors are looking at deploying this capital as part give me a sense of who is coming to you and how many of these pitches you actually invest in. We see about 100 pitches and choose two companies. We do about two percent of investments. Companies come to us and we vet them and decide they make sense and then we invite our Community Worldwide from 53 countries of accredited investors who then get to choose. We have a Company Currently called bio catch. What that does is they actually know who you are in a banking environment without having to use a password, just based on. Our bio metric interaction they came to us and it was competitive. Putting 3 million together and the way it works is we aggregate the investors who go on to our site and see a presentation from the company and watch a rep webinar, and they decide and start from 10,000 up. You can try to pick the next whatsapp. It is critical to mention you have got to build a portfolio. This stuff is so risky. You have to diversify. If you do not have 5, 10, or 15 of the companies, youre not doing it right. Today ormpany started even in the last few years, do you see their equity strategy as acquisitions or going the ipo route . People always prefer ipo because you can build real value and continue building the company. An ipo is another funding event to raise money and better valuation so you continue to build value. Most ipos are not showing several others selling shareholders. There are a lot of them in israel. 800 are bought for each woman goes public. We have a lot of Companies Traded in new york and right now were number four behind china candidate in the u. S. View of ther own startup culture here in the u. S. , everyone is trying to compete with silicon valley. New york seems to be the next hot spot for tech startups. Think thereable to will be other cities that can crop up and compete . Absolutely. I spent a lot of time recently in san diego. We just put up a company in san diego from our site out of the supercomputing Center Building a massively parallel Management System for big data. The first customers, it was a great deal and i said, how do we get the steel and were based in jerusalem . Countrye parts of this where there is unbelievable technology but not enough capital. We are investing in san diego and cleveland. We invested in a wonderful where we arew york completely reforming educational systems. Jerusalemng it from but doing it in the global sense. The startup scene now is global. Everyone wants into it. Investors want to invest in different countries. It is interesting. They do not want a job on wall street. They want to start up a company on silicon valley. Stay with me and we will talk about more. Talk about driverless Car Technology. Coming up, one more way to keep soldiers safe on the batter field. We will talk about the armys driverless truck. We will be back. It is 26 minutes past the hour. We are on the markets. Uite a strong rebound they seemed to have eased just a little bit today. Here is a look at the other Bloomberg Top headlines. Jpmorgan bracing for a trading slump in the first quarter. The fourth straight drop in fourthquarter trading. The Fourth Quarter is typically strongest for trading. Half a foot of snow in the south atlantic. A blast of arctic air is set to spend sent temperatures plummeting today. Parts of the northeast could see. Ecord lows Disney Program includes abc and internet and by satellite tv. The deal is the first that allows a paytv provider to offer disney content as part of a webbased subscription. In the automotive world, the u. S. Army unveiled its first self driving vehicle. The department of defense made big push in recent years to put more Automated Technologies on the battlefield in an attempt to scale down personnel and put fewer soldiers at risk. We got inside look at the armys his newest tech. Leave it to the military to be the latest in technology. I want to bring in cory johnson, our bloomberg west co. Editoratlarge. Investing in startups, specifically crowd funding. Allhave been studying, for your research. Interesting stuff. Clearly just the senses. All sorts of Safety Devices going into cars 10 years ago. The carmakers love to talk about the stuff. Every car show for the last six or seven years. They try to attach themselves to the coolest of consumer electronics. It is a little cooler than the Car Technology these days. It is becoming real business. It is the leader in Collision Avoidance technology. What they do is they have a little chip which teaches the car to recognize tesla is partnered with mobile app. They are partnered with the majority of carmakers worldwide. The guy is now on to his next these glasses that let the blind essentially see. Israel in robotics in terms of autonomous driving vehicles and john technology is off the charts. Absolutely. Moretime, it might be made. Aboutusk, he was speaking technology. We are continuing to build on that expertise. The firstto be Company Market to market with autonomous driving functioning in the vehicles. That was a surprise. He just sort of dumped right in the middle of the interview they were working on this. It is kind of a race to see who is able to perfect the technology. He says he will be first. To me what is more interesting is not the car you get and start checking your email or read the paper, but the steps where we take the driving experience and add more help to the driver and we see the very aggressive ways with every release of every model. Class apple is doing something. Yes. There is actually great work going on in terms of automation inside the car. One of the big problems is voice in the car. The background noise. How do you talk to syria . We have a Company Called vocal zoom. It turns it on their ear. Toy use in opticals signal measure the vibrations of your face and then they correlate that with the audio signal. The amount of things you can begin to do not just in terms of Collision Avoidance, but in terms of it hooking up the car to the internet of things, the big new buzzword, the future. A number of cars from mercedes and ferrari and honda, with apple ios interface. On a touchscreen, that will connect to the iphone on your car, and allow you to do things like use serious and use other maps. One of the interesting things about serious it is an innovative morning till. It mightve been crummy but he continues to get better because it learns from every use. They probably thought of this as a vehicle builtin device but knew it would take some time to get the excellence and safety required for the vehicle. I am just seeing on my screen, same sussed same subject, the cfo is retiring. He been cfo for a while now. Eight years or so. Probably boatloads of money. Classic and use that money to invest in startups. I have a theory just getting. Ack this is what i think about when im not on the show. I am really worried. [laughter] with all the Technology Going into the cars, the car industry, it means more turnover or that more, orll release they will turn over their cars a lot more. From the Development Side of things, you have seen major automakers. Ford was the first one who got this. Mercedes has done this as well where they have separate Development Processes because the Car Development process could take three or four years from design to implementation. They actually have a separate unit in these companies to go into the car. They are essentially designing a vehicle with a motor and connections. It is amazing to watch the Auto Industry become a tech industry. It is wonderful. Thank you for joining us. Also thanks to cory johnson. About cars. K more coming up, mercedes is unveiling its new sedan today at the geneva auto show. Most of us do not have to review road rage. Is taking it to a whole new level for his new Comedy Central show. He will join us in just a few moments to explain it. The coupe is set to go on sale in the u. S. This fall. For more, lets turn to the and head of mercedesbenz. He joins us live from geneva. Thank you for joining us. Great to see you. It has been a while. First summit with the new Mercedes S Class code you will the strategics position of the car . It is simple. The most people as class whichever has existed and probably one of the most beautiful cars at all. On top of that, it provides all known from the sedan, described by many people as the best car in the world. Where will you expand the s class . Asco the top niche of the total market, this is a real luxury coupe. We have many people in the world looking forward for these kinds of emotional models from topnotch rants. For all places in the world, where people enjoy luxury goods. Those who have been following your company and following mercedes know you have been outpacing in sales, bmw and audi. Continueseen the trend more thanent . 15 in january, significantly more than our two competitors. February, again in a two digit mode of growth. Asy publish lower numbers far as growth is concerned, the audi is still out. It looks good for us. What about sales in europe . The market altogether starts to recover. Even southern European Companies are showing some sign of life. This is not a steep recovery but a slow recovery. Growing in the depressed markets. With this environment, it is. Ven better you mention in a prior interview youre seeing a lot of demand and your capacity is not able to fill some of the demand you are seeing in other parts of the world. Are you looking to expand your production . Are you looking at building more factories . If you are, where would they be . Are expanding our capacity in china right now. Were adding production for the c class, another expansion. Going to shift basically in all plans we are operating. Then, midterm, we are planning for entirely new plans. It is likely one of them will be in north america. Ok. We were just speaking about Driverless Technology and how various carmakers love to talk about automated cars and how that is the future. Where does mercedes want to be on that front . Were coming from the safety side. We have the vision. Once we are capable of assisting the company to prevent any keep the, to just Steering Wheel or continue to push the throttle or the break, then we have autonomous driving, that is how we are arriving there. Were definitely in the lead in the industry in this regard. Totallyproven that autonomously with our close. Roduction s class prototype our tour current class already includes parts of autonomous driving stop and go autonomously. What about fully automated cars . Did you envision that for the future of your company . Absolutely. We will get there. We do that stepbystep. The next piece, highway traffic, freeway with passing and everything. The car will find its parking lot itself and will be there totally autonomously. Thank you for joining us. Up, online food ordering, a hot business. A ceo joins me to talk about how his company is ordering success as it plans ton ipo. A comedian talks about his edgy brand. How to we get that edge . Stay in the loop. Class Comedy Central is adding another sigh cast sarcastic guy to the mix. The new show is called review. He portrays a character who reviews everyday experiences like grocery shopping. So you can add alcohol to the list of stuff im not addicted to. Maybe i am invulnerable to addiction. Mis superhero . Ok. I have tried cocaine, cigarettes, alcohol, and did not get addicted to any. One thing i need to try his cocaine. [laughter] debutsubious thursday. Did you really get addicted . Housley. It was great. I did not really get addicted to drugs. Forrest mcneal did. He will do anything his viewers ask them to do. It does not matter what it is, whether it is dangerous to him or his family. I was watching some of the experiences, he what its like to be a racist, for instance. What are some of your favorites coming up . One of my favorites is definitely a road rage. Andoes out into the world tells us up front, driving usually makes me so calm. Relaxed driver. How will i find a way to get mad behind the wheel. He figures out a way to do it and has a real competition. Were watching now. There it is. Jason challenges into a smash off, not a real thing but in our world, it is. How to the whole concept, about . Series in australia for two seasons. A very dark and disturbing comedy in australia. Comedy central thought of me for it and sent the australian version to me. The only prison who could adapt it for america. What was the thing you had to remember as you are adapting it . Their version, you often do not know whether the people their main characters are interacting with are real people are not. They did it so realistically the camera hangs back at a realistic difference distance. The cameras never in front of the guy. It is always following him. To make it really feel like a documentary. That was something we hung onto all the time. Nothing outlandish and no crazy quinces is. Coincidences. How different is this going to be for you going from hbo to Comedy Central . Class for me, the visit the biggest difference is that i was one of several people on that show. I probably had 20 days on the set altogether on that show. I was part of an ensemble. For this, i am in every shot. It is different for me as an actor. It is on me. It is crazy. Feel good or is it scary at the it so far feels good. It is only the beginning. Your show launches tomorrow. Thursday. There is an interesting difference between standards. We did a segment on Comedy Central for a review on. There was an awful lot of back and forth about how much blurring we had to do. Not an issue on hbo. I well know. Hope for the star of this series . How do you want to develop his brand . The most important thing to me about the show is that he will go anywhere, even if it sopletely destroys his life, the more outrageous the better and the more experiences accumulate to change and as a person. That is what i am most interested in doing creatively. The show does not reset with every episode. He carries with him everything he has done in the past. Tell me about the team around you. How many writers do you have . I brought in jeffrey. He won an emmy for directing the office. He held make this show. He understands how to make things feel real. We brought in writers from saturday night live and ahead were writer of the onion wrote for us. Put together a dream team of writers and great actors like jessica st. Clair. We dont quite get to do that on this program. I highly recommend it. You are speaking about some of the writers from the latenight shows. We have been covering the latenight wars between jimmy fallon and jimmy kimmel. Such a friendly word. This,a comedian watching and some of your counterparts, what do you think about when you see it . Is it something you eventually would like to aspire to . Not really. I love playing characters and losing myself in characters. Either hard time being myself. The character can host the latenight show and he would ruin it somehow. In that respect, where do you want to bounce from . I know youre just starting the show. From the show to what next . What would be the ultimate goal . I would love to do the show for 10 years. That is a good question. Im so focused on the premiere thursday and the life of this character and the show, it is hard to imagine what is next. Getting to do stuff like this where i get to help write it and be a part of it from the beginning, it is a fantasy and i love it. Great to have you here. Premiere onatch the Comedy Central this thursday. We will be back in two minutes. Equity futures are rebounding. Were up to one percent apiece on all the averages. Political tensions in europe here and were on the markets again in 30 minutes. Coming up, a little red corvette falls through a single. We will show you the rescue in a moment. 30 minutes to the opening bell, this is in the loop. The countdown begins right now. Welcome back. Here is what were working on. Markets ready to rebound after yesterdays selloff. Futures indicate stocks will open higher. Barack obama setting his Budget Proposal to capitol hill. The president wants tax cuts from low income families and also wants to spend more on infrastructure, job training, and preschool education. John kerry is now on the diplomatic front lines of the crisis in the ukraine. The u. S. Preparing sanctions to russia. Battle for breakfast heating up. The breakfast wars. First of was the lawful taco. Starbucks is now going for your egg and cheese dollars with new breakfast offerings. Worlds largest coffee chain is introducing four was sou items that julie kind to bring in. A sneak preview of what they have. We are staring at these. I got a sneak preview last week and i went downstairs to our starbucks and bought them today. There is a new egg and cheese sandwich with vegetables on it. Terkel turkey bacon and egg white and an egg and cheddar on toast. Starbucks told me they look for feedback from their customers. They wanted to see a cut a sandwich with more vegetables and they wanted the turkey bacon want to have fewer calories so the reformulated the bread to have fewer calories. This is a market that is in high demand right now. Theyre doing it without a kitchen. Yes. They do this in a lot of various fast food places where you get breakfast. The boards where you order, it is all still beverages when but they are relying on people coming past the case that has all the patriots all the pastries. It is interesting. We are talking about how you have got the Food Companies the coffeecoffee and Companies Going into food. Starbucks wants to play in this space because others are encroaching on them . It is a matter of growth and getting that order up here and i talked to peter, who covers the Food Companies. Breakfast tends to be sticky. If you decide you like preference in a particular place, you might go there every day. If you like the sandwich, youre quite loyal. If you like lunch, there is more variety. Starbucks owns breakfast in a lot of ways. It owns the morning daypart. The idea is, why not add to the ticket and have you buying something additionally . Certainly, an incremental addon for anyone going there. Exactly. Theiry are still making biggest margins on the coffee. There are still high margins on the coffee. Starbucks is not alone. We had taco bell saying it would introduce a lawful taco. We do not exactly know how much it will be at. It was . 89 we tested the markets. It will likely not be quite that low. It is on the upper end in terms of calories. Switched the ham and swiss sandwich is 4. 95. That is competitive with neighboring muffin. Theyre trying to compete on they and what exactly offer on healthy offerings. It would be interesting to see what people decide they like. Prefaces most important meal of the day. Thank you. Our senior markets correspondent. Lets move to lunch. Chicken wings. Mcdonalds has about 10 Million Pounds of wings to offload on you. The companys mighty wings line has been a thorn in the side of the Company Since its inception. Too have run the gamut from expensive to too spicy to why all the bones. Inventory,he excess mcdonalds is selling the wings. Gain but cheaper at a discount joining me now on the new strategy is nick. Not a newably strategy. They need to offload the wings and are doing it at a discount. Mart move by mcdonalds . It is the only move. If they did not, they would have 10 pounds of wings they would have to eat. They lowered the price by about . 40. About . 10. Sts Gross Margins came down from about 90 today. About 10 is the difference between profitability and basically breaking even. They are trying to offload the wings. Choice . Ad no other could they have done nothing else with the wings . Thats pretty much it. They bought the wings. Stored for a year now. They had a thing bought, that 50 Million Pounds. It was not as successful as they hoped it would be. They had about 10 Million Pounds of wings. Anything did not have to do with. They are basically trying to offload it at a breakeven price. What was the real problem in your view with why the mighty wings did not do well . Was wasnt the fact they cost about a dollar each . Was it too expensive . It was too expensive. The profile was not perhaps as palatable to the average consumer. The real issues mcdonalds is not a place people go for wings. Was not as successful as they would hope it would be. Is it at all possible if they offload these at a cheaper price, maybe at this side of the promotion, it could actually be even more successful given the price cut than the initial one . It will be. But in my opinion, they cannot come back and rerun the promotion. What happened was, and the reason they priced it at in the first place, when they entered the wing market, it is such a thin market, they drove prices from about a dollar a pound to 220 a pound. Prices their own went up so much they had to price at such a level it was not competitive in order to make money. Theyre now just trying to get rid of it and it is unlikely they will get it back no matter how successful. Thank you so much. Moving and shaking this hour, qualcomm ceo steve mollenkopf. Today is his first day as the head of the biggest provider of mobile phone chips. The occasion by adding 5 billion to Share Buyback program. It is boosting its Quarterly Dividend by 20 . Rose more than three percent. The chief operating officer to ceo in december. That followed a Bloomberg News report he was a candidate for the top job at microsoft. Up, we are ordering up success. The ceo of the food ordering site joins me to talk about consolidation and competition in and, do not mess with new jersey. A Consumer Products company tried to make a joke and he did not work out so well. We will tell you more about that in a moment. For it seess to expand its mobile and Online Presence to more cities. Joining us with more is the cofounder and ceo of a lesserknown online Food Ordering Service now operating in 48 states. Thank you for joining us. This seems to be a very hot market so to speak for companies. How are you going to compete with what seems to be the one that dominates the market. How do you compete with that . Good morning and thank you for having me. We have always managed to compete with them. They have been a great competitor all along. They have taken 75 million. It is more of the same. The market continues to grow. There is plenty of room for multiple companies here, unlike facebook were you want to be where your friends are. My choice to order food is influenced by which site provides me the best value and not what other people are using. Right. How does it differentiate itself exactly . We have there are four ways. With item ratings, not just restaurant ratings. Individual dishes can be rated. We have a ranking system, like in boston there are thousands of restaurants that will visit you the bestlect restaurants based on user preferences. Rewards programs, points earns with every program. Exclusive arrangements with restaurants. I was going to say it would seem to me the only differentiator would be you would be able to get restaurants that others would not. Why would a restaurant exclusively partner with you when they have a company like grub hub with a bigger Distribution Network . Technology differences matter. Restaurants are interested in orders. We are able to retain customers better because of our loyalty program. Will continue to prefer us and we will be able to provide the order volume they are seeking. How do you make money echo we charge commission to restaurants. Are you able to say how much a commission is and how that compares . Our base commission is 7. 9 here there are addon programs for additional placements. The individual average is about jesse industry averages to 12 . One final question. Of other Online Companies do. Mount gox blowup with , has that affected at all the way customers pay . Are they staying away from bitcoin . Any impact on that front . No, we see it affects the price of transactions that occur. People deposit more bitcoins to order food. Now cox news has not affected us at all. Thank you. Foodlfounder and ceo of er. Time now for this versus that. Learning that you do not mess with new jersey. This is a billboard they wanted to put up in new jersey. Fun at the states reputation saying, hey, when people call you the armpit of america, taken as a, met. Someone misjudged the garden state, because that is new jersey, as feisty as its governor. New jersey residents took to social media and did not think much of the billboard and the call the armpit of america. Your lever agreed not to put it up. It is the u. S. Headquarters in new jersey. It layson where exactly there. Coming up, these corvettes take a tumble in kentucky. Do not worry. They were rescued in the end. We will have the details straight ahead. Reportedry carmaker sales in february. Earlier this morning, i asked the chairman and head of mercedesbenz what is driving sales. The market altogether starts to recover. Even southern European Countries are showing signs of life. It is not a steep but slow recovery. We have been growing in the depressed markets and with this environment, it is even better for all the new models we are offering. Matt miller joins me with on mercedesbenz. How had they been able to go head . Dont you wish you would get more excited . He is doing so well over there, stiffy, and he is still and tired. Sometimes, he can have a lot of personality. Not know me maybe he gets nervous. They are doing so well. The classic underpromise and over deliver. He is saying the market is not youre just making fun of them. Class i love him. The reason mercedes is doing so well, other than the European Economic recovery, which is slow, that is helping the entire industry, is that theyre coming out with incredibly strong products. They have a great barbell approach. Have got the s class, super luxury, andpensive every single car reviewer in the world is just obsessed with it as far as that class of car. It wins every accolade in word. It is not beatable as far as the 10hnology and precision and and engineering. It is helped them to shine. On the other end, and not that it is a lowend product, but the cla coupe, in the affordable luxury slot, has been such a smashing hit. It has been the fastest fourcylinder out there. The kids love it. I talked to a lot of people this. The bitcoin millionaires who struck it rich because they were interested in this technology. A lot of them, the money has gone to buy cars. Y do want a smaller pardon Carbon Footprint but they also want luxury and speed so they buy this car. It is the fastest and most and very efficient fourcylinder engine. He has done well with the products. Class i can see that. I want you to listen in on the other story we have got on cars. Youre going to love this. Two classic corvettes were rescued from a giant sinkhole yesterday. Have been trapped beneath the mask the National Museum in kentucky over the last months. On damaged cars will be display through august 3 before being repaired. Can you imagine . It is great. The story has been going on for months. It illustrates the passion people have for the cars, for corvettes. Everyone made fun of corvettes as an old mans car, the cheaper , butnative to a porsche the former corvettes, people have fun with. But they had a heartfelt emotional connection to them. The single story illustrates that. Thank you. Matt miller. Few minutes away from the opening bell. The top 10 traits you will not want to miss after the break. Welcome back. 26 minutes past the hour. Bloomberg television is on the markets. Scott has the latest on futures right before the bell. Right now, futures are pushing to a much stronger ocean open. Vladimir putin, the comment suggests the ukraine crisis will not escalate, at least not immediately. That is providing some relief. European stocks are also advancing on the day. Gold prices flipping slipping from a fourmonth high. Still up 11 in 2014. The russian ruble also notable, is gaining as well. Of a snapttle bit back from trading record lows against the u. S. Dollar. We will continue to monitor that. We are on the markets once again in 30 minutes. Thank you. Lets count down to the open with the top 10. These are the only traits you need to know about today. Alex joins in as well. Lets start with number 10 and facebook. The social networking giant is in talks with buying a joan maker for 60 million. Be interested in using drones to spread Internet Access to parts of the World Without it, beginning with africa. Number nine is a Realty Retail group. It used to be known as dress barn. It reported earnings above estimated. Forecast this year because of higher operating costs. Number eight is wendys. It is looking to beef up its salad line. Plans to roll out two new entree salads. The ceo said the companys goal is to be the most important player in a salad market. This talk enough food has made me folded a. Tesla motors, the luxury carmaker, will now open 30 new centers in Stores Across europe. It expects combined sales to be almost twice as high in europe and asia as north america by the end of the year. Jcpenney, raising its outlook on the department for a change. Becausee for negative of prospects for further improvement over the next year. It is also ending its Monthly Sales report, saying data points are no longer necessary with the companys turnaround effort taking hold. Number five, international, shares plunging. Well below estimates. It is suspending Financial Guidance for the foreseeable future while it undergoes an organizational revamp. Number four is dish network. It reached a groundbreaking deal. Deal will allow dish to offer disney shows as part of its future webbased description television service. Number three is fuel energy. Fuel cell, which reports earnings on march 10, is one of the most overbought stocks. I am talking cars. The autoparts retailer reporting in nine percent increase as well as sales growth of four percent. Severe Winter Weather actually helps sales by accelerating demand area number one is radioshack. Shares plunged more than 25 after the Electronics Chain announced plans to close up to 1100 stores in the u. S. , or 20 of its footprint. Radioshack also reported a significantly wider loss for the Fourth Quarter. Are also keeping our eyes on shares of smith and west. The gunmaker reporting earnings after the close today. A bumpy ride for alix steel, and paul barrett joins us from washington. On gods. T with you we saw them take off in 2013 under the threat of more regulation. What is happening, why this decline now . There has not been any kind of tragedies. If you take a look at federal background check which analysts say can be a relatively good barometer for sales, they tend to increase we see some kind of national shooting. Aurora in thet Movie Theater in colorado, and the sandy hook shooting in newtown, connecticut. Youll see more regulation, and that brings the gun sales soaring. Well over theo longer term, what have one of the shootings. In 2012, what that did was a brought forward a lot of sales and to the first half of 2013. That has led gun manufacturers to measure up to Impossible Co mps. Do you believe it is regulation, or it is Something Else going on here . Paul, can you hear us . Lostems like we might have all pauls audio. Alix steel, is it just about regulation . It is definitely about regulation. When you take a look at what happened last year particular, banddent obama wanted to a to ban highcapacity magazines. Smith and weston is about seven percent, but those tactical rifles, 20 seven percent of the sales 24 of its sales come from highmargin and high profit. When no law was passed in congress, the year on year declines were in these active goal assault rifles. It is having a huge impact on whether they can make their prices. Are we going to see the marketing to different types of people, trying to open new markets . Youre seeing it in terms of women. Longerterm, they see the women category as a real strength going forward. If you take a look at the 2000 love gallup poll, saying that 23 of women voted for a inearm that was up from 11 2005. A lot of those women handguns, and that is 400 definitely a change what we have seen in the last 10 years. All covenant you can hear us . Yes i can. You may or may not have been able to hear a report, but basically alix steel talking about the regulatory hurdles, and that being part of the reason we have seen this decline. Do you think is regulation, or Something Else at work here for why we are seeing this will just slow down this year . Something much larger, and more basic at work here which is guns have been selling at a furious pace for three straight years now. Guns do not wear out quickly. Once you have it, it remains functional in definitely. At some point, the market gets satiated. That afteritable such a boom under president obama, so much fear marketing by the industry, that the minority of americans who own guns, many of whom already own multiple firearms would run out of steam, would run out of the discretionary money in their pocket, and might take a year or two years off. Steel was saying, maybe resetting and looking at different markets, who are some new owners that they need to tap . It has been a perennial desire within the gun industry to get more women to get involved, both in shooting sports and in their own firearms for self protection. I think you will see Marketing Efforts were women stepped up. The obvious truth, and what can insiders say, is that 2013 and and, the slowdown is here there is no avoiding it. There is no way to keep up the 30 and 40 sale increases yearoveryear for a durable consumer items that just does not wear out. Alix steel kobe you say that is prospects, some more consolidation now in this group of companies. I think all was making that point. Was talking i to say that we will not see the great rate of growth we saw in the last few years. It came down about eight percent. The think we are right in cost of some very significant consolidation in the industry. For example, i think freedom group, which has been owned by the cerberus private equity group is going to change hands, possibly be broken up and configured. And a very iconic, famous brand, glock which is owned by the glock family in austria, is about to change hands in the near future. The founder of the company is very advanced in age, and there are a lot of other people who would like to add that brent to their portfolio. For people within the gun industry, we are actually going to have an exciting time in terms of merger or net position activity in the next year to 18 months. Thank you so much for joining us. Warrenup, the one area buffett cannot seem to figure out, but neither can anyone else. Newspapers. Ukraine seeking a 60 billion bailout, but the standoff in the country already costing the worlds wealthy a lot more money than that. All of that in a moment. Heres a look at our bloomberg west top headlines. A shakeup at apple. The Senior Vice President saying that he will retire at the end of september. Apples Vice President of finance will succeed him give up succeedg to direct him, reporting directly to tim cook. Cbss new ads could help them cash in on new viewers and on demand. Japanese Wireless Company holding talksbe in the u. S. A merger would not hurt competition. That is the latest in tech and 1 p. M. Every weekday at eastern, only on bluebird west bloomberg west. Berkshire hathaways latest report, they saw a collective 5. 6 drop in daily word or ship readership in the 28 peepers that he owns papers that Warren Buffett owns. The small papers. Those were expected to whether this downturn. What is going on . E, smaller local papers without much competition in these tiny markets were google or other News Services around the yard and that are not going to help readers find out their High School Football sports, and exactly local weather. It does not matter, because they have seen a big drop in readership. Y . You are and your people are simply buying newspapers anymore. They watch local television, the radio, that sort of thing. That, it that side of is the advertising side of it. There are fewer advertising in local papers, so there is less honey for them to print more news. It is a snowball effect. Quite how will they turn this around . Buffet is a longterm investor. He loves newspapers, he has loved newspapers, and he is looking toward the horizon. He says theres going to be downturn right now and publicly for the next figures, but longer term, meaning that people are going to come back to the papers to give the information that they cannot get elsewhere, he not being ablen to spend all this money and then you get away for free online. Whether people are actually going to pay for it or not, there is not enough aided to see. But if it if it is valuable, people will pay for it. Do you have a sense of what papers are likely going to stay profitable and thrive . The big papers that we know . The New York Times, the national paper, and in may ways becoming bigger than that, is becoming bigger than that, its going to be a global paper. They want to get subscription ,rom people around the world and they are a better job of , anding the world events encapsulating sort of big world events in sort of digestible, understandable articles for everyone to understand. I think that is going they doing well for that reason. Either that way, or super small. The local stuff that only you are not going to get anywhere else. That is where Warren Buffett is still going to put his money in terms of degree on way to capitalize on it. That will take time. Do we get a sense that he is we all try to read the crystal ball and when he is going to buy next, but is it a sense that he is going to swallow other papers . Is going to look to swallow other papers and the 5000 and , and0 to the 5000 20,000 range in circulation. The middle sized papers cover the regional papers are having a harder time because they are in bigger markets. To logeaders are likely onto the New York Times or the wall street journal, or other national out light outlets to get their information. That is his limit in terms of the size of papers he is going for. Thank you so much. Great to talk to you. Russia ukrainian public has added more conflict to the debate. And russias 10 president ordered the jews back to their bases the troops back to their bases . Time now for the global outlook. Russias military presence in ukraine caught investors a lot of money, and also cost the world billionaires big time. The 300 wealthiest people lost a combined 44 point 4 billion billion. 44. 4 markets are rebounded today as we mentioned, on the news that putinn president vladimir ended the military exercises and that the troops back to their bases. Offering support and American Cash to the new ukrainian government. Oil and natural gas, is what russia supplies. Peter cook, the crisis in ukraine adding new fuel to the Energy Debate . Absolutely. Fight thate it is a is when going on for several years. The oil and gas energy making an aggressive push in washington for regulators to allow for expanded exports of oil and you grasp and gas, and this may allow for that. Europe relies on russia for much of its energy, and russias youth that weapon russia has used that as a weapon in the past. The Top Republicans in the congress say that is why America Needs to open the taps its growing supply so that u. S. Energy can provide competition to russia. Theyre using this to prep was pressure of the obama to approveion liquefied export terminals in the u. S. The department of energys approval process is unnecessarily putting our allies american of one Vladimir Putin. Six lng terminals have been approved since 2011. Nearly 20 more have applications pending right now with the applet department of energy. Omeare still talking s this would be sent to europe and the ukraine, and it is being made for oil as well. Oilban on the export of needs to be lifted, and the Obama Administration can do that without an act of congress. They have not been on board . This has been an active debate, and the republicans support this notion. What is important to democrats is that they see this abundance of normal oil and natural gas and say why do we want to send this abroad . We need this at home to maintain low prices here at home. They have support from some in the industry, particularly the natural gas side. You do not want to see this gas go up, because they are worried it will raise the prices here at home. Peter, before we go, tell us about secretary kerrys visit, and what he will be doing. We know, for example, he is going with a check. He promising loan guarantees, and support to the ukrainians. Congress needs to approve those loan guarantees can there could be a little bit of debate over that. The other thing they are offering his technical assistance. They want american experts, including a lot from the treasury, to be ready and in place to help ukrainians meet the requirements of any imf package to come. It is that i am of money that is the real cash and all of this. Our money would be just a drop in the bucket overall. That doesnt for today on in the loop. The former deputy secretary treasury of the treasury under bill clinton will join me as a guest host. Be sure to tune in. Stay in the loop. It is 56 minutes past the hour, that means the Bloomberg Television is on the markets. I am scarlet fu. We are about 30 minutes into the start of the u. S. Trading day. Heres where things stand. The s p 500 bouncing back from its biggest loss in a month. I 22 point. Vladimir putin said he would send Russian Troops to you ukraine in extreme circumstances. The threat to energy and Agricultural Supplies eases just a bit, and the yen strengthening, but week against the dollar. True to the adage, march has come in like a lion. ,e had a storm in california and the dumping of snow in the midatlantic and northeast. This is proven by the data in january. , we ares hardest hit discussing this with our guest. What have you learned so far in your data and analytics . As you have said, has been a brutal winter, especially in the northeast. And the midwest. Hasstimate that weather caused a negative impact on sales in the economy by over 50 billion over this winter, of which went to billion dollars are probably not coming back big not coming back. It is not like were going to make it up later in march, may, or june . That is right. Anything to do with restaurants, wages, or leyland Flights Airline flights, all that is lost. That after such a brutal winter gevo does that mean that brings going to come around the corner sooner than expected, or this point in the give us any indication as when it is going to come . Spring has already broken the southeast, and it is fairly mild there. Spring power sales are up. It has been pretty warm. The planes are breaking next wek and the northeast, where are still in winter, it is owing to be late march going to be late march. Greg how will see the weather continued to affect . If it is into late april, will it affect it . We do not know. We know that it looks like that in the northeast the weather will start to get warmer around the middle of the month. But, there are still a lot of snow on the ground. The great lakes are still frozen. Even though we might see power cell start to move, lawn and garden is going to be a week or two after that. We have to wait for the ground to thought. We talked about who would get hurt by the weather. Someone must benefit. Who does . Retailers have been benefiting a lot as long as their traffic is not been dampened. Winter products have been way up this season. Apparel, snow blowers have that moves snow, in effect anything that gives us warm has been doing us a great. Was really arm perfect storm because you had forecasts of a lot of snow, everyone bought, and nothing came. Another area that has benefited, thank you so much. On the markets again in 30 minutes. Market makers is up next. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. Bulletin dials it back put in dials it back. And grimy and has a sigh of relief. Missing the target. Sales are slowing as fears of has been makers running for cover. Will the makeover make a