Welcome to the big show. You are watching street smart. Have 59 minutes until the closing bell. Russian president Vladimir Putin says he is not seeking to split ukraine, but he did sign a document to annex crimea. Then words. K louder can he save the company from the damage already been done at gm . Matt miller is my cohost today. Good day to have you. News aboutwith the gm. Good day to be here. I spoke with the undersecretary of the treasury about bitcoin . You didnt talk about it going . Heabout bitcoin as well, but is responsible for the sanctions against these countries. Great day to talk about bitcoin as well. We will have excerpts from the interview. Nothing. Tion data we got, like, crickets. How is the inflation data compiled, right . They are not counting things that you and i never have to buy like ipads. It is a little more weight given what the fed has been doing. Here are the stocks were watching headed into the close. Julie hyman is watching the technicals for us. One of the data points we got werees inflation, guys, housing starts. They were better than expected if you look at the months prior. Forever where he was betterthanexpected and it looks like things are stabilizing if you look at the february was betterthanexpected and it looks like things are stabilizing if you look at where the Housing Market has been going. If you look at homebuilders, that is one of the groups rallying as we see the overall market rallying. D. R. Horton is one of those groups rallying. Another one is general motors. We have been talking about the recall at general motors. The ceo has created a new position to be in charge of safety. It is a new Global Safety position. She also came out with a more public meaculpa culpa about those recalls. Walmart unveiled a new program where it will allow customers to trade in video games for credit at walmart and sams club stores. Are our concerns about the competitive market for used games. What will that mean for gamestop . Those shares down as a result. All right, that is our julie hyman. Talking about highfrequency trading. We have the attorney general of new york who launched an investigation into highfrequency traders who get what he considers an unfair advantage. This is not a gordon gekko like character gobbling up information about companies that no one else has. In some ways, it is more insidious. This predatory behavior gives small segments of the industry a huge advantage and allows them to use technology to reach huge profits based on very minor, but nonetheless unfair advantages. The unfair advantages they work people up, because a lot of people do not feel it is a level enough playing field. This is one week after virgin capital filed an ipo. Gone for fives years can you believe this . Without one day of losses on its books. Will the investigation seriously disrupt the model market regulators have allowed for years . Joining me is the one who broke the story for us. I will start with you. Lets back up and explain why this is a big deal for some investors. Half of all trading, versus zero percent in 1997. What is it thomas and why should people care . The issue is how these traders use technology to, as schneiderman says, gain an advantage. It equals an on level laying aying field. Evel pl you are looking at dark pools. We do not know what goes inside of those. Given the fact there is a lack of transparency worries not just schneiderman and his office so dark pools, they say, by the way, i want to trade this they block of stocks and the volume affects the pricing. It is happening behind the scenes, not being reported in a fully transparent way. Or that frommove 2011, 20 09, 20 08 why do we care again . The sec already looked into this. It was a big story i will tell you exactly why we care. Americans want to know it is a fair system. If some machine has a tiny advantage over you, that somehow in essence feels on american, feels noncapitalist at its foundation. Is there anything that can be done, john coffee, to restore Peoples Trust in the markets, foris it an off highfrequency trading . You can do a number of things. Of the question is who makes the rules . We have a conflict the tween the new York Attorney general and the sec. The practices the attorney general is focused on effectively assess order priority to the highfrequency trading. Right to put their orders and before the rest of the market. Everyone else gets information from reuters and bloomberg. They will tell the Stock Exchange the same time they tell reuters and bloomberg, which gives them a few seconds advantage. You make your purchase, you can invest that money and hold it. Highfrequency only gives someone an advantage over someone doing slightly less highfrequency trading. It is only against die day traitors. If you are a buy and hold investor, like most americans are this is like the flash crash. Felt afterpeople 2008, after the flash crash, after reports like this, they do not have the edge that the professionals have. Is that true . Is it fair to think that . They are trading in and out of stocks over minutes. I dont care if you are trading in and out or you are holding it forever. You dont like the idea is some other guy will have a better shot because he is either aiding someone to do it or there is a computer computing this algorithm whole point of the investigation of what the ag is doing right now is to figure out where those unfair issues lie and figure out if they are legal, illegal, or unfair. John coffee, youre the lawyer. Are they legal or illegal . You cannot have two different different rules for traitors. You have the sec that has tolerated this for years and now you have the attorney general saying this is unfair and deceptive. We cant have two sets of rules for the new york Stock Exchange and the nasdaq knows theseec rules . They have never stepped in to stop it. Hasnt the sec investigated . Arent they concerned . The sec has looked into this. I remember, it was 2011, right . The sec is a civil Regulatory Agency and Eric Schneiderman is the top Law Enforcement in new york. He has a different view deal with two different regulators thing to structure the market this way or that way. Does in the market prevail . Traditionally, the sec is the Principal Market regulator. We have allowed antifraud legislation by the new York Attorney general. This is a much bigger expansion of jurisdiction. You look at the volume and the Participation Rate among average americans, and it is nothing like it was. I think it is hinged by all of this concern. Great job breaking the news. John coffee, always a pleasure. This is a great story here. Im glad you broke it. Indeed. The tensions continue to rise between ukraine and russia. We will have more on this tends situation tense when we return. Plus, we will discuss Worlds Largest trade deal. See you back here. The crisis in Putin Ukraine is escalating. Vladimir officially moved to and russia isea and bolstering its military presence along ukraines border its new order. In a speech he defended russias actions and said russia has no intentions of moving into other parts of ukraine. Tone believe those who scare you about russia, who say dont believe those who scare you about russia, who say other areas of will follow crimea. We dont need the division of ukraine. Remain eo, it will as for crimea, it will remain as the russian tartars wanted. Russian lawmakers are expected to ratify the annexation by this sunday. They better, right . If they know what is good for them. The tensions are rising. Is that even possible . A ukrainian soldier was killed when on identified mastic gunmen stormed a Ukrainian Military installation, leading the Prime Minister of ukraine in two declare the conflict was entering a military phase. Joining me peter cook and the senior managing director from san francisco, pete sanchez. Further or ting is this escalating further or have we reached a plateau here . I think it is escalating further. Both what we saw today, the russian president formally absorbing crimea other nations said dont do it. They did it. Now we have real violence the between ukrainians and we are from you. Ho else in the death of this soldier should be of concern. The ukrainians responded by giving the green light to live ammunition for their soldiers and crimea. It is a tense situation. How did we get to this point . I dont know that the United States has the responsibility of and trolling Vladimir Putin. What i would say it is president , right . He has been pushing at us all along. Precedent, right . Theres a lot of fingerpointing, that this administration did not take him seriously enough. I think the same criticism was leveled at the Bush Administration during the georgia crisis. I think we have good i think we have bad and worse choices as we try to respond to this. I will say, and a lot of pundits are saying that putin is winning. I would say thats a very shortterm view. There will be serious economic consequences in terms of investment. You heard yesterday, ford is talking about not making further investments. I think you will see other companies. Do they care . You talk about the sanctions, sanctions against the oligarchs i think he does. His former undersecretary of commerce, francisco, would know more about the u. S. Interests in russia. But this is a red light for businesses doing business in russia. Businesses calling the u. S. Government and expressing concerns about this. This will hurt down the road. In the meantime, he has numbers, domestic numbers going through the roof, popularity numbers. This does not bode well threw one in he jail, invaded georgia, just like has soldiersll there, lest we forget because we stopped covering it in the media. It did not die. There have been so many times since i have been in this industry, 14 years, i have heard three times investors. Alwaysg russia, and they go back. I am not suggesting there will not be investors. The russian economy is a fragile economy. It is a commoditybased economy. Putin and others have talked about trying to diversify that economy. This will make it hard to do that. This is not just ford. You already have a fragile economy what about the argument that he doesnt care as much as we think . He cares more about his this nationalism and russia reforming its greatness . That is priority number one for him. But somewhere along the line, the economy of russia matters. Be a pinched will down the road that will harm the russian economy in a way that Vladimir Putin will think twice down the road. Whether or not he does right now. We were talking to the undersecretary today about escalating the sanctions. What can we do, what measures can we take to really dissuade them from doing this . The sanctions include freezing assets, restricting travel through visas, banking, restricting the flow of dollars releasing the spr is something people have talked about. Convincing australia to produce 3 Million Barrels a day. When it comes to gas going to europe, that is not something that will turn on a dime. It does have longterm implications for russia. The other question if we focus on the United States, we need to have a pretty strong debate on exports of oil and gas, taking advantage of the resources we have here. We haveinly that domestically. That is an industry that has been taking off and has National Security implications. Anyway, it sounds like this guy does not want to be stopped, sanctions or not. Francisco, you are going to stay with us. Peter, i know you have to catch a train. Catch a train. See you tomorrow morning. At threat. That is a big one. [indiscernible] apparently so. Treasury secretary will tell us what a transatlantic trade deal could really mean for the u. S. Economy. Thats coming up next. It could be the Worlds Largest trade deal. Week president obama and World Leaders will hold talks on bilateral trades. The deal, if it happens, would take up half of the worlds economic output and mean gains for both parties. We are still here with Francisco Sanchez who served as the undersecretary at the u. S. Department of commerce. I know that you were instrumental in helping exports reached alltime highs in 2012. What does a Transatlantic Partnership really mean for us . It means a lot of things. It creates one of the largest free trade rockets in the world. 800 Million People when you add the United States and europe. Tariffs. Just it is reductions of nontariff barriers what . E regulatory cooperation. We have regulations in europe that are very different from here. If you make your product for u. S. Standards, you may have to change it. Remember when we were negotiating a freetrade mbia, and with colo the only thing getting tariffs were our goods going into bia. Mbia colom and i was like, and yet, and yet this is going to help you sell your product. How did the unions feel . They are historically suspicious of trade agreements. If there is one they can embrace, it would be one with europe. The wages are roughly comparable, in some cases higher , then the United States. That is a concern for unions. Our tariffs are not far apart. The real value is in eliminating differences in the way we deal with regulation. Those will not go away, but hopefully we will have some corporation, harmonizing standards we will have some cooperation, harmonizing standards. If they are going to be for a trade agreement, this is the one. Otherwise they will be protectionist. That has worked out for them so far. Still to come, gm appoints a new security chief in the wake of over one point five additional recalls, but has the damage already been done by brant to the brand . Im julie hyman with breaking news on adobe, was which was due to report its earnings after the close. It looks like it did release information early on its website. Shares have been searching. 1 revenue came out at billion even. 900 70mate was for million. You can see the spike in the shares as these numbers do come out. The company also reporting segment right segment revenue. The Digital Marketing segment revenue the Digital Media revenue of 641 million. Adobe is the sixth largest Graphics Software maker and the company has been migrating its business, offering more online subscriptions. That has proved to be relatively successful. Judging from these numbers, it looks like it has been working in its favor. After we get a more full report of the numbers after the close of trading, we will get you more details. Right now, the bottom line is the shares are up. Is movingmary barra to fix problems that have led to the vehicle recalls. She names of veteran to a new Global Safety position. Joining us numbereds auto bloombergs auto editor. It seems like this is one of her first orders of business, right . She just came on board. She found out about this recall, found out about the investigation of it in december and her last weeks as developments chief. She became the ceo in midjanuary and by the end of the month they decided they needed to do this recall. It has dominated her opening months on the job. She has had to find yourself trying to get her hands on this and out the bleeding, stop the damage at gm. This is the first structural change said she took the job and everybody got their new jobs. And creating this new decision of Vice President in charge of vehicle safety, really human safety isnt it [indiscernible] i mean, they are a car company, right . There are people who do this stuff, but it was not as high of a level. This is still a few notches were not talking about chief officer, who reports directly to the ceo. This is someone who reports to someone who reports to who had marys old job. Looks atomeone who just engineering or just design who looks of the problem and says this is where the problem started and how we fix it. Ok, just because we are journalists then we are all if she does this, this may be more of a Communications Effort than something substantive . You wonder why her predecessor did not do something about it. You wonder why his predecessor did not do something about it. You wonder why the auto czars did not do anything about it. We have known about it for a long time. Jamie, this is a problem they have known about for more than a decade. Is it . More than a decade now . Problems whenound they were developing a vehicle. They thought they fixed it. They started making the models around 2003. They started getting complaints, but they thought they had a have. I doubt ed would known anything about this. There would be mechanic semi, car salesman who would know, low level engineers who would know. A lot of the pr folks in 2005 when it was getting written about in the new york times, they knew about it. The folks who came in later, they probably did not do that much reading on that level of stuff when they came in. There are questions about who knew what when. What do you think the u. S. Government might know about this . First of all, i would give the ceo the benefit of the doubt. I do not think this is a publicity stunt. Clearly this is a problem that has been around for 10 years and has not been dealt with. Im giving her the benefit of the doubt. You are not a journalist. Im not a journalist. And those folks, steve ratner, those folks from the government the board is not responsible for daytoday operations. There was clearly a problem, but i would not blame it on the board of directors. If there was a problem with the bloomberg terminal that was killing users, i feel like our board would get directly involved. Dont you think . I agree, but apparently it did not get to ms. Barra. That is the cynic in me. The headw could she as of Product Development not know about this . Journalists knew about it very well in 2005. How were executives not aware of something that could lead to deaths . In 2005 and 2006 what they knew did they know they were killing people and needed to do a recall . Probably not. They knew that cars shut off sometimes and they had a fix for that. She may have known something about that. She said she did not know about this instance until december. A big part of how companies notle the stuff is you do spam every Top Executive in the company with an email about every potential problem that may have lawsuits attached to it later. That way they are not liable the cfo, right . There is a financial impact, but do you need to tell the cfo about every quality impact . Probably not. You do not want everything being gobbled up and publicized when it is not about the cfo. Right . Do you want to know about this . You dont want to know about this. Got it. At [laughter] butters, in charge of our auto coverage. Coming up, sharing is not sharing it is apprising. You think of the city as on the cutting edge, avatar away. t give it we will have more with our onst Francisco Sanchez china. He has been there, what . 10 times . Stay with us. Last night, Seattles City Council dealt a big blow to ride sharing outfits like lyft and significantly limiting the number of drivers these companies can have on the road at any time. 150, thats it. Lyftfought back, while called it protectionist. City councils around the country are trying to figure out how to regulate this rowing industry versus the old yellow taxi you are used to this growing industry versus the old yellow taxi you are used to seeing. Joining us, to lehigh men. Jewels . The ruling is that these companies can joining us, julie hyman. Jules . The ruling is these companies theonly have 150 drivers on road any given time. It is a big constraint. [indiscernible] 2002 youre going from 150, that is from 2000 to 150, yes. Why . It is not it does not seem like any reason, except it is and the taxiness, union potentially. That is what we talked earlier onthe ceo of sidecar bloomberg west. That was essentially what he said. Listen to his response. If you read the text of this legislation, it specifically its one of the reasons created it was competition with the taxi industry. That is why they created the cap of 150 drivers for each company and the only rationale for that is to reject the existing industry. And uber actually says 30,000 people wrote in an against these kinds of limits, 30,000 people who use these various services. It is unamerican, right . Doesnt anyone say, what country are we in . Im sure a lot of people say that. They did this. Word for thise action. Stupid. Particularly with seattles reputation. Seattle has a reputation for innovation. This is a Disruptive Technology uber and these other companies have put forward. Is it the unions . I do not think this is union. I think this is busy business. Exerting businesses their local influence. This is a big mistake. I hope the people of seattle revolt. I dont know how it works in seattle, but any new york, we bought these medallions and they are becoming worth less and less because of this innovation and in the city council gets behind them. I would say then its time to review the whole system. I will tell you, truth in advertising, i am a big uber user. The service is phenomenal. Clean cars, courteous service, they are there when they say they will be. Competing with taxis. It is not necessarily competing with taxis. It is competing with black cars. A more higherend service. It is a 20 premium. A lot of people are willing to pay that premium. Thank you very much. We will have more with you, francisco. Dont go anywhere. You were on the president s commission to china, and we will talk about your reaction to what r toldarber marc fabe us yesterday. He is a huge bear on china. Interesting to see your reaction. More next. All right, get used to a week you on weak yuan. Bank of america and barclays say that it is trading weak against the dollar for the first time in years. It is no secret the chinese economy is showing the slowdown. It has a seven percent growth rate, the lowest it has been sense, what, the 1990s . We are here with Francisco Sanchez. He was a member of the president s commission to china. Now . O you feel about china we are hearing from everyone to marc faber that it is a problem. The truth is china is growing at a slower rate and has been for about three years. [indiscernible] i would say we have still done reasonably well. We had record exports in china, and last year we exported over 120 billion dollars. If there is a precipitous drop in their growth, it is going to reverberate around the world. I would caution those sounding the alarms. This is someone yesterday, boom, doom,f the and gloom report you know what that is going to be, right . He said he could see the system unraveling. Here is what you said. A friend of mine who trades china very carefully, that trade finance between one state owned enterprise in a private company, over it has amounted to 5 million by rolling over the same collateral times. It is not a funny thing that is happening in china and when the whole thing unwinds, it is going to be a disaster. When the whole thing unwinds, it is going to be a disaster. That is the operative word from marc faber. Day t the end of the this is a state run economy. So, they have the ability it is a command economy. They have an ability market true marketdriven economies wouldnt. Leastsident xi is at talking a good game, saying he thatnot bail out every soe comes around with problems. When it happens, there could be shocks to the system. I think longterm, it is probably good for china and for the World Economy that they get of a market based approach. I was having lunch with someone who runs a business in china, and he said a lot of other Business Owners that he talks to will inflate numbers and lied to each other when they are discussing things. They just raised 5 million in the vc round. They will say they raised 10 million. That is just the way it works there. I cant speak to that. Growthdo know is their has been steadily declining, but that should be expected, to have record doubledigit growth for nearly 30 years i do not think you would expect that for another 30 years. Cook the numbers or not, their growth is slowing. My feeling is if it is not a precipitous drop, it will not have a huge reverberation for the u. S. Economy or the World Economy. But it does say we need to diversify where we do business. We cant put our eggs in one basket. Diversification is a rule that people should spread across their life and finances. Seesfaber told us he still growth. About half of what china says. Better than a stick in the eye, you know . Thank you, Francisco Sanchez, former undersecretary of of the commerce department. Thank you very much, trish. Knowe stocks you need to about. You cannot miss this. The closes next. The close is next. And in the next hour, two of the most accomplished astronauts. Cool. All right, we have the market heading into the close. S p up 12. Optimismion, and some right now in the markets, despite all of these concerns we will talk about a intimate a minute. Here are your top 10 stocks. Number 10 is microsoft. The ceo is said to be on unveiling a rival for apples ipad. For apples ipad. We can all do office on the ipad. Yay. You can already do office on the ipad. It is so weird, but maybe it is like Peanut Butter and chocolate. Maybe they will work well together. Speaking of apple, number nine is apple. They have unveiled their newest ipad and a cheaper version of to compete5c, trying with brother to using googles android software. By the way, there will be a new suite of products for the android. And a project to extend the android operating system to googlee watches. Also, and viacom is settled the view each saying the other violated copyright. No terms were given, but the watch is much cooler to talk about. Yeah, agreed. Here is something. Gamestop, plunging after the news that walmart will accept preowned video games later this year. Ooh, walmart getting into games. Thats right, cutting into gamestop sales there. Working unveiling an app that will allow customers to pay for their whoppers with smartphones. It should be in all of u. S. Locations in a few months. You eat burger king . Are you serious . That is something you did not know about me area about me. Guilty pleasure. I walk by on 3rd avenue. You ruined he rest of my day. Ruins my day. And last month barclays released criticism for its 2015 totals. Profits shrank. It is set to cut 12,000 jobs this year. [indiscernible] shares on the rise. Gain market share from ibm and lenovo. Number three, nasdaq three, nasdaq. Shares fell on the report that the attorney general was tradersating whether had improper evaluations. Jules . Is ing. R two they are winding down the business and planned to sell 26 million shares in a public offering. Ok, close of trade. You heard the bell. Ceo mary took too long to recall the cars that killed 12 people. More than 10 years, in fact. Hoping for a more timely resolution. Years . Two years, five just not 10. Its tragic that those people died. The dow,p 87 points on the upside is well on the s p. 1872. A producer talking to me . Tech leading it. Lead, up 53a big points of the gain of 1. 25 . Julie, break it down. Werelot of the movers we talking about our reasons why tech was doing so well today. Microsoft, google, apple. It helps matters, but we saw a broadbased gains. Something i had a little trouble Vladimir Putinat is saying that he is not interested in the rest of the ukraine. Stocks rose after he said hes not going to split the ukraine but he just took a quarter of the country. Its not quite a quarter. Maybe 1 5 . Its a big region. Important, how much credibility does Vladimir Putin have when it comes to these kinds of things . , not much. But for russians, probably more. Lets talk more about this malaysian plane that is still missing. The longest modern loft of a plane in aviation history. A millionaire heart. Earhart. Cial amelia marshall. Commercial. Toaysia says it is trying narrow the search core doors the missing boeing 737 and the passengers and crew. That is difficult to do. Authorities have asked for satellites to be used. The planes path was diverted on a cockpit computer before veering off course, reinforcing the belief of the disappearance of the plane due to deliberate actions. New things come out on this every hour. I read a report that thailand has said that it saw an unidentified plane, not sure if it was this plane. They did not release the information earlier to malaysian authorities. Some kind of weapon being flown to a country, takes the people off, read gets it and use it. You had to get down on your knees and between the two seats to reprogram it where it is being done. Know that youre able to fly waypoint to waypoint. When you do commercial aviation or if youre a pilot like i used to be, you look for certain points on the map and this seems to go from point to point. In this case, they flew from point to point. They are trying to go somewhere. We are all hoping against hope that somewhere, those people are alive. How worried do you think the u. S. Government is about this . And the surrounding area. It will never get to the United States. India, pakistan, others. They had no people with anything involved. They lied about their own athletes. I will follow the u. S. Military and they are down in the millet indian ocean. Definitely something that we can all agree with. The revenue of that industry dropped 3. 9 last year. Mobile revenue was 15 billion. Revenue from internet Construction Services soared 51 . It these arehere going. It is the biggest drop in the world, the second largest music market or sales of cds wait. Are we still talking about cds . If you look at the radio industry, it is getting worse there. I go through a free service and i program to get my local radio station. Youre not using spotify or pandora. Why nt understand group shark is completely free. You have ads. There might be screen ads but i never hear an added. An ad. It does come up with an ad about every 15 songs or so. No one that i use. The kids are not paying for anything. Problem for the industry. Onif i hear something i like group shark or satellite radio i want to give the artist that money. Lets get to oracle, shall we . Kind of a big company. Short of estimates. It is very slightly shy of estimates. Oracle is very heavy in the Cloud Software business which has been a strong business but there is a lot of competition from rivals, microsoft among them. It could be the competition aid and its numbers. They are down 6. 5 in the first reaction to the numbers. They actually lagged what we are seeing in some of the tech rivals. Is the only place they will see it. Mitt romney is saying i told you so. The former Massachusetts Governor blaming president obama for failing to act at the right time during global crisis. The ukraines in grew and violence ensued, it was evident that people in the Intelligence Community that president putin might try to take advantage of the situation to capture crimea. It was a time to talk with global allies about punishment and sanctions to secure solidarity and communicate these to the russian president. Some criticism from mitt romney. A lot of republicans pointing the finger saying the Obama Administration did not take this its likeugh. Being a monday morning quarterback. What would you have done before . Would you have made a strong move . What would the alternative have been for president romney . He does not feel threatened by our sanctions. The sanctions were so weak. He doesnt feel threatened by anything. He is one of the richest men in the world. How do you deal with it . I would give those guys credit. On the most interesting man in the world. It takes a lot. The heavier version. I think that caused it. They are working on those things ahead of time and he is not doing anything to us. Then they start getting interesting. That is definitely true. Here is a country that he already essentially occupies. One minute their leader was going to sign an agreement with the eu, he was quickly convinced not to do that. Does it make a difference to us . It does make a difference to us from a political standpoint. The feeling is you give them an inch and they can take a mile. Why would he stop here . That is where the bases are located. A very strategic area in the black sea. The mood aighten little bit. If regulars dont do it for you, what about these . A new app with him ogs emojis. The aok symbol and a selfportrait emoji. Thats cool, actually. Express . That this dude is weird. It expresses design, write . Right . Its bizarre. This thing doesnt capture any of you. You cant even use it in messaging. You have to use it from the app. The fiber tuned weird ys that follow him are the ones that are going to use it. Back ons the skinniest the fashion scene including the runway models and he has a collar that accentuates it. What is your deal with using emojis . Do you put hearts over the Text Messages . To you. [laughter] they used to call me pencilneck. Now its a double chin. You share that. We get paid extra. Next, is america losing the commercial space race . Next on street smart. We will be right back. Our next guest is not happy about americas standing in the commercial space race. Here in the studio, the former nasa astronaut and commander of the International Space station expedition. We are here with the commercial space travel, but really it is the public space travel. The whole real issue here is tot we will have to be able divorce and go outside of our solar system. My real issue is that we are not on a sustainable path. Intonot just getting space, its staying alive and keeping going. Are overpopulated and over consuming and we have to find a way to get around that before we are out of house and home. I think it would be a longterm goal. We are not on a sustainable path. It is not a priority and it hasnt been. It dovetails nicely with what should be our National Goals of going beyond the orbit. We need to do more. We have elon musk and Richard Branson we could call it the new space race. All trying to get in the game. The new ussr. I like that. Is not our government involved in this . I think it is good. The goals are different. It will free up nasa to use those resources to develop the spacecraft. It will be a commercial venture, but not the First Missions because of think youll have a hard time finding investors. In due time we need to get out of here . How long do we have . Toit depends on who you talk. Going to mars isnt the answer, but we need to go to mars. He need to do that exploration. We dont have the technology yet to do that. I invite all of us to remember that when aviation was invented, just a little over 100 years , we are first 20 years repeating that pattern 100 years later. It cant go exactly like that. You, what do you think we can find . Is there another form of life echo i have no doubt there is other life in the universe. It is infinite so there will be countably infinite number of planets that can support life. The question of whether there has been life on mars in the past or microbial form today is an intriguing one. We found underground water on mars. It is possible. And other planets we dont know about. We want to set up shop in movein. Urine . Youre in . For sure. A real honor. We will be right back with more street smart after this. The ncaa basketball tournament starts this week and we will talk about who will cash in on the tuner meant and who wont. Its march madness. It means we will have a new contrast with plenty of winners and losers off the court. They will pay for exclusive rights to the tournament. Ad tournament draws more dollars in the nba playoffs. And more than the super bowl. Of abouta payment 250,000. Usually pay that money to the schools competing and they can use it however they see fit but they are spread over six years. There is a big incentive for schools to go deep in the tournament every year. Last year, nike had its gear on 52 of the 68 tournament teams. Wichita state and nike sweetened the deal. This year, the team is undefeated and all eyes are on them. And theyre nike gear. 86 of workers will spend part of their day checking out the tournament which equates to 1. 2 billion in activity. A 1 billion offer to anyone that submits the perfect bracket. Perfect, butare they dont think anyone is lucky enough or smart enough to go all the way. 2. 5 billion dollars on the tournament, it includes the 10 youre going to lose off the court. Yo wagered. Egally gambling is illegal . We have a law for everything. What is wrong with this country echo we are both putting together brackets and im going to beat you. I dont know what youre talking about. Bo if you have a bloomberg terminal, you can use it to put your bracket together. Have been making regular appearances to show you how to get that. We are talking about Charter Schools, coming up next. The battle over your childs education. They have taken 200 and 10 million at a Charter School to fund prek education. Than 2 million actually attend these public charters, so why do we care about this . A recent study by policy research mathematicians show that students enrolled in a Charter Public High School are seven percent to 11 more likely to graduate compared to their peers in district run schools. There is a lot at stake here. Joining us to discuss this is president and ceo of the National Alliance for public Charter Schools. Our Charter Schools now under attack . I hope not. In new york city, you have one of the most robust Charter School markets. They are performing much better the study peers demonstrates that they do better and more likely to go to college. By and large, they are given more flexibility to operate in schools in exchange for raising student achievement. Attracted topeople entrepreneur Charter Schools are entrepreneurs and they make no excuses for poor academic performance. Failed told the mayor see if students in Charter Schools are doing better. Wouldnt we be more concerned with the education the kids are getting then the unions . This is a mayor that ran on a platform to make sure he was getting rid of inequalities between the rich and poor Charter Schools. Kids dont vote but teachers do and the unions have a lot of power. Still . After all of the scandals . It takes a strong mayor to stand up against the unions. Mayor bloomberg was very adept at negotiating with the unions and making sure they were getting the things they wanted in exchange for freedom and flexibility for parents to exercise choices. Making sure they had the resources to grow. Of the argument is if you put all these resources into Charter Schools, you dont have enough resources for the Public Education facility down the street. These are the same exact kids. But theyre different in that their parents have opted to send them to the Charter School. Youre talking about the same exec number of kids and families that youre serving. If more parents were clamoring to send their kids to these Charter Schools, mayor maybe the mayor would be more responsive with the money. How many students are on waiting lists to attend regular Public Schools . We dont have those numbers. , close toional level one Million Students are on wait lists. A are popular because they produce results. I can say this is a resident of manhattan. , there are very few Public Schools. I remember being in a high school manhattan. And graduated to the next school year . And they can treat . The school that the mayor closed a few weeks ago is one of the best Charter Schools in the entire state of new york. He feels that the space will be utilized by the Public School. In the entirents about youre talking one of the best schools in your state. A Public School in harlem and the students are reporting the top one percent of their peers in the subject. For a Charter School, it is tough if youre denied that opportunity. The commissioner of the first next on street smart. And on pace for another recordbreaking year. The hot wheels coming up next. Time to where we bring you the business behind media, entertainment, and pop culture. The future of viral branding is here and might not be what you expect. First kiss is the latest attempt to bring down advertising boundaries, a video with 42 million likes in the first three days on the web. Oh. It was commissioned by a clothing company. One viral video at a time. Your joint by the founder and creative director of the clothing company. That is quite a commercial. Passionate kissing. The most passionate. How did you get them to do it . You bring to people together and see what happens. Out you edit not at all. We left it all in. Some people got a little into it. They had never met before. Some of the people were actors by profession but other people that were singers, designers, one person worked in a store. A crosssection of cool l. A. People. Two women, two men, an older an, a younger man you really did diversity. Did they get to pick . They had no idea and they did not know the name of the person they would be kissing. Basically they walked on set, met this person for the first time, knew they would be kissing a stranger. They took it from there. Wow. I feel like i made you guys speechless. We are just watching. There you go. Very people are wearing clothes that are manufactured by you guys. Cool about this is why we should be looking at the close, we cant. Kind ofon views, a new advertising. Our director just put up the them. S so we could see thinking about sites like buzz feed and wanting to put that in a style context. We wanted to do something outofthebox and emotional. Marketing of content that sort of has been disruptive. Did you kiss anyone . Doesnt the video make you want to kiss somebody . There are people i know in it. I never thought about him like that before. Who knows. Was it harder to find women . The men were harder to find. The guys were a little bit like what . The budget was 1500 and we came in under it. People did this for free . They love the idea. It was authentic and peer and exciting and they wanted to be part of it. I was thinking that i would do this. I have a girlfriend, so i wouldnt. To othermarried people, came in and essentially cheating. They get a hall pass for that day. Amazing. That is pretty powerful marketing. Have you seen an uptick in sales . Traffic is up 14,000 . 96 of the visitors had never been there before. Sales are up over 13,000 . It exceeded everything we could have ever imagined. People went out afterwards, so maybe thats what got everyone. I would say give yourself a raise but youre the founder of the company. I will double my salary. Sales are going to be booming as well. Successful and amazingly fascinating. You did this yourself and you came up with it. You did not use an advertising company. Mostthink it has been the interesting story for people, showing the power of social media and the internet today. That you have to make content people are interested in. You can have the biggest Marketing Budget but people dont care about your ideas. Do you have people calling you up . It is off the hook but theres always time for you. So much for coming in, we appreciate it. Where can we see the video . Everywhere, but youtube is probably the place that has gotten the most. In your nexto be campaign. I would need a hall pass first. Porsche is on track for a record sale. The rank is coming up next. Porsche posted 32,000 cars sold in the u. S. And amanda said to gain even more traction this year. We get behind the wheel to see what is fueling their success. It kind of feels a little more minivan. It is really like a station wagon. It is not a good image. A lot of uris were very angry, but it became a huge im talking about margins, the kind that people from for dream about. There is no third row, is there . I have never been in the back seat. Who was the ceo that absolutely loved it before audi bought ducati. And now he loves the q seven. But i am a fan of the smaller porsche. That of people would say they absolutely loved it. Which is acayman little midengine conduct sports car. I dont think it gets enough love. Tomorrow is a big day. We have the fed news, of course. Watch for that. Couldnt be more excited about the fed news. I wake up early and i just get this butterfly and my stomach. Still . It is my favorite day, really. We will hear why he will be bullish. And the ceo of caesars will join us. He has a new hotel he will be operating in south korea. And if you have a problem with highfrequency trading, you have a problem with the house. We are coming up on 56 past the hour which means bloomberg is on the markets. A rally today, better than estimated economic data. Home sales revised higher in the prior month and also some of the rhetoric coming out of Vladimir Putin on russia and the ukraine not as severe as investors had feared. He did talk about the annexation of crimea. The rally led by technology and health care. The nasdaq the leader up 1. 25 . We did not see a lot of change today. We did, however, see yields move a little bit lower. 2. 67 . Have wtil prices, we rising the most after the owner of the c wave pipeline said it would double capacity as early as may. Take a look at what happened with gold prices today. A little bit of bouncing around and a downward trajectory. The biggest decline in two weeks time. A little bit of buying of treasuries, people not looking for it in gold. Lets take a look at the dollar yen trade. Enormoust see an amount of change but the dollar a little bit lower. It is time for insight and action. Adam johnson has a History Lesson for us. Time for a little insight and action. They are kind of converging right now. Annual seasonality. Where q1 and q4 tend to be best. Now that we are at the end of march, sit tight. It is the same message coming out of the president ial cycle. In Midterm Election years, you tend to be sideways. Then you have the election and you trade up. The decennial cycle that is data that goes back to 1891 when it was first presented in 1956. If you look at decades, it is in the single digits. It should be year for, i know that it says youre three. Year. Three. Ist Davis Research used ths cycle to correctly predict markets going back to 2010. They have not been exact but pretty close. Whats working. If you have a market that is going to be flat and not move until the yearend, go with what is working. They did not quite make it to a record close today but if we continue the rally the rest of the week, we can see if the market can get another leg up. Vladimir putin absorbs signed a treaty today to absorb crimea. Virgin signing causes political and some math making headaches. Centrall have to redraw europes borders. Plus, redrawing a business plan. At mothers use their largest a