Meatballs and ice cream. All of that and more. By my radioe joined cohost, carol massar. The gm ceo testifying to a senate panel addressing problems in general Motor Vehicles which are said to be linked to 13 deaths. Some say that it is about criminal deception. The facebook coo Sheryl Sandberg has sold off more than half of her stake in the social networking company. Millione sold about 26 of the shares. Of 2012. Back to may or a roku for example. No setup boxful. No cables, no wires, no big deal. Just plug it into the Television Set and have a desktop connection. Amazon will be a big player in this. I think others will be. Those are some of your top headlines. Amazon has a new set top boxes called the fire tv which plugs into your television and Internet Connection and makes it possible for you to watch movie, shows, other video anytime from the web. This represents just another bit of competition for apple as well as google. What if anything does amazon fire do that you cannot already do with your television . Isnt this of us to be about making money . We have the cofounder and chairman of media more. From stanford california. They have a salad use by Media Companies in order to learn more about their audience. Chance togive you a correctly pronounce the new of your company and tell us why did you name it this particular name . Pronounced ooyala. The name means cradle. An eastern indian language. That is indicative of what we are seeing, a lot of tv consumption. Creatively innovating. We are ushering in a new era for tv. Does this mean we will have term . Ate a generic this encompasses so many more forms of access and entertainment. Television can be viewed on any device, any time. Fire tv andof the is really in line with amazons objectives of total domination. World domination . Absolutely, you cannot dominate the world if you dont dominate the living room. It is a much better device than apple tv or a roku boxx. At her hardware. Why do you say better hardware . The twocause it has gigabyte hard drive . Allows them to control the entire and two and experience. There are some new features they are launching with voice search and discovery. The biggest game changer is the whole gaming side of it. This is something that other boxes dont really have. If you look at it at a 99 price point with another 10 for the hdmi cable and the game console, it is a little bit more roku or thehan a google comcast. With the game console, it is a good product. This will let them go after a brandnew segment. I want you to come in on this because i know you have a lot of sprints building an online content world. A lot of experience building an online content world. If you want to watch lady gaga, you go to the website and you can watch all kinds of things. This is all an ondemand demand all the card world. Does this make sense, what shahid is saying . I agree with what he is saying but more importantly amazon as a bold phone service for this product, they are the kings of marketing. The is for a lot of existing customer base. They also sell a lot of hardware. Theyre selling other competing products in the markets. It is a natural transition. It might not be that big a deal for amazon. This is one more piece in the inventory of stuff that they can sell you. This is with the original content and what they are buying. I think theyre doing a fantastic job. Will,re in a connected to with the best original programming. I just want to ask about this idea of the original programming. At least it used to be expensive. It is one thing for people to buy a boxx. Youve got to keep feeding them new stuff. I think so. Amazon is things that very good at right now. Not only will it be the original programming but they understand massive scale and massive distribution. This is a tremendously large industry. It is 450 billion a year. Being understands this very well. They are investing heavy amounts of marketing dollars as we are discussing into this. The most valuable real estate homepage ison. Coms pushing this product aggressively. They will start to capture a large portion of this market, about 10 of the 320 billion dollar a year pay tv market. This is a game that they understand very well. 300ere is a 10 of a billion paytv market. That is 30 billion. Our friend is stretching the truth. It is an overthetop market. They will go and compete headon with the set top boxes which is already saturated. Concerned,ld be netflix . They are putting netflix on the boxx. They can watch the viewing habits of the different consumers. Dataaugments all of the that it is already collecting which allows them to better target advertising or programming or anything that they want to do. This fits right into what you have been able to accomplish in the world of music entertainment. Moreu find that people are interested in a certain type of concert, now you can reach them. What happens to the advertiser and all of this . We are not talking about someone spending money for ad dollars. Ad dollars will grow over the top as well. I think amazon having a platform that has more products and more developers are able to launch. To advertising will move these other distribution channels. Just like mobile, it will move there as well. As far as amazon and next, they have the technology, the capability, the storage, the cloud, and so on. Next move for them . You mentioned original content, what is next . Maybe they will be their own isp provider. It would not put them beyond amazon. As we touch around a little bit, it is getting more sophisticated with how they leverage their data. A lot of the current experience is distributing content to you, the same price point. A lot of the same experience that others will have. As we touched on the advertising elements, amazon has one of the richest repositories of data in the world about usa consumers. Where you arenow browsing. They have the potential to build an entirely new experience. Even a personalized app load. This will actually benefit both consumers as well as the advertisers and generate an incremental amount of revenue above and beyond what the even see today with the economic traditional tv. Shawn used the word benefit. You could spend the hours debating the benefits and not benefits. This is like a plan of domination. At some point they should seriously explore a Premium Model where they open up the top set of their content for free where anyone can watch it and they monetize that through the highly targeted ads that shawn was talking about. Exponentiale an premium on their earnings. What do you think of that . Amazon is quite a few subscribers and they are able to continuously monetize existing Subscriber Base as well as a lot of the amazon users. They will grow that and try to double it. Will do more on advertising later. Everybody has a kindle as well. It is a nice koppelman to that as well as the app store. It is a nice complement to that as well. Hbo as well. That is 99 a year. Of mediamorph and sean knapp of ooyala. Streaming content across millions of users and more than 150 countries. Ill have details about how a major decision from the u. S. Supreme court could affect changes in the way people donate money to Political Campaigns. We will be speaking with the former houston mayor. Looking to become your own shoe designer . I will speak to the cofounder of a Company Looking to make custom shoes. The u. S. Supreme court is listing the limits on Political Campaign giving. The justices ruled that donors can contribute as much money as they want overall as long as they dont go over the limit of each individual candidate or political party. 20 meeting now to discuss the ruling and more is bill white, the former threetime mayor of houston. He is also the former Deputy Energy secretary and also the author of a new book which is entitled americas fiscal constitution, its try and then collapse its triumph and collapse. I want to get to the book in the context of this decision. From thebenefited system and you have three times been elected mayor of houston. Ruling you think of this in the context of the tribe then collapse that you described . Well, i dont think it is good news. I started teaching this in law school over 25 years ago. The constitutionality of Campaign Finance restricted. Once they ruled that it was speech. That money was equivalent to us each, this is a slippery slope. Now you have the rich people that can be exempted out of the system. By and large, too much money does not do a lot of good for the american political system. It is getting very expensive to campaign for office. The worst thing would be if it was unregulated and people pick the candidates who were no more than marionettes for somebody else. It is possible that we could see a shift because of the use of technology and various other means . As much talking about the latest television gadget as we are talking about Political Campaign reforms. You have to do with the situation as it exists. Is it possible that people will just by pass the traditional methods of political cohesiveness . It will go on line, they will create their own groups. That is a fascinating thing. Before there was social media, the used to call it grassroots door to door. Now, the new grassroots door to door, they might not be nextdoor but they are in your inbox and in your email. Chasing money you get the more commercials, after a while, people get tired of that. I looked on amazon to see on the website. That must be very gratifying to you. The world isds and changing. Most of those changes are positive. A little bitto see less politics. Americas fiscal constitution, what is the one thing you would like people to discover in the book . For 90 of american history, we did manage to balance the budget except in actual ordinary emergency such as war or severe downturns or to acquire territories. Progressives believe that you need to have sustainable financing programs and ordered that they would endure and conservative south hey, if youre going to have a new Government Program you ought to at least pay for it in taxes so that people would be able to deal with the cost. Since 2001 that has changed. It is not too far way that we were able to balance the budget. I want to thank you very much. Who would be the hero . There you go. Americas fiscal constitution, thank you for having me on. I want to want to create your own shoes . I will speak to the cofounder of one of the Largest Online custom shoe manufacturers in the world. Footwear industry is nearly 50 billion a year business according to the National Shoe retailers association. Customization is the growing trend. I want to bring in one of the biggest players. Ofi foxx cofounded shoes ray. She decided to spend some time with us. Jodie fox cofounded shoes of prey. The idea was that people were getting links to all of the world whatever source they want. In your case, it has to do with the content in the form of shoes. This is a website where you can design your own womens issues. We have trillions upon trillions of possible designs. Wece we spoke last time, have gone offline which has been an interesting move. He opened a store and the reason that we did it was not because there is sexy language about multichannel but for us it is giving her what she wants. The question we are hearing was around what it will look like. The best way we can help you to see that is by giving you all of those elements to touch and to interact with. We do a lot of work on line to give you about as much as you can so that you have that convenience online. You can touch the letters, you can try on shoes. You can get to the shoes. Lets say that you are able to put together the mixing of colors and the heels and different fabrics. You then want to go to the store because you want to see what the fabrics really feels like and maybe they even have it in that color. Then you decide you do not like that. Im going to change the fabric. That is the kind of thing you can do in this model. I think that there will always be a place for offline. It is important to be able to touch things or understand things. We all know that a google hang out whenever replace everything that i can read from a person. In the same way, even though we have a great returns policy so you can return your shoes for 365 days. Sometimes, you have just got to see that product in your hands and feel it. In addition, i know you are here in new york because you want to be with us. Where else are you . Well, i love new york. Are you here on a shopping trip . No, im here doing a few meetings. Willing to share about that yet. I was business. Is business good . Yes, it has been an optimistic 12 months. The online space is doing well. Im interested in that we are bringing up online as well. I want to thank you very much. This is talking stock on bloomberg for stop for a look at the headlines, i want to go to my radio cohost, carol massar. Trading accounted for more than 35 of the currency volume last year which is up from 2008. This is all according to a consultant group. It is the opposite in equities where the proportion of trading shrank to 50 . The chinese Online Shopping giant Alibaba Group is looking to trade in silicon valley. Into a 250ey million funding round for a company that had a 280 million investment. Major Oil Companies are selling more than 300 billion of assets. This is according to the carlisle magic partners. Carlisle private equity partners. Those are a look at some of the top headlines. Thanks very much. Oil. W you mentioned my next guest spent six years documenting what it is like for usbased company with a lot of investment behind it to find oil offshore of western africa. Producerynton is the she had exclusive access to a Texas Oil Company as well as officials in ghana. She joins me now. Thank you for coming in. What made you want to make a . Oney about the oil business lexa started out as an idea about oil. Ammary should make documentary from inside the business. I went at it as giving access to an oil company, im going to west africa and find an interesting story. I did not know anybody in the business or in the continent of africa. I started with nothing. I bought a plane ticket and off i went. Who did you meet . It took a lot of work. I met a lot of people, thousands of people. With the Oil Companies i learned pretty quickly that the big Public Companies were not going to let me have the kind of access that i wanted so i started looking for a privately held company. Cosmos, they were funded by blackstone partners. Thathad a lot of people knew about them because of their previous success. Theyd worked together at a place called triton energy. These are very good people and finding offshore. Yes. Click so, you connect with them and the story that you thought you were going to tell, does it take a shift anywhere . You dont necessarily have the plan. The documentary filmmaker, youre having to deal with the unknown. You are taking what you can get to see how you can pull it together and turn it into a movie. Kind of movie, everything is shifting. They are having to deal with the unknown and i am having to deal with the unknown. Tell us about some of the people behind all of this. Well, Jim Musselman is the ceo. I was really attracted to him as a character because he is a classic texas wildcatter. Bigger than life . Yes. He is very selfconfident. He had big ideas and big hopes about what he was doing. Ryan mac person is stead. Then there were the militants in nigeria. How did you make that connection, what was that about . That took forever. Why did you meet them . Because they control the flow of oil or because they can make it difficult for you to operate . I thought i was going to do the whole thing in nigeria. I was going to be there because at the time there was this militancy going on and they were blowing up pipelines and they were kidnapping oil workers and who does not want to film a bunch of guys with ak47s . I always knew that i wanted to try to fill with them. The problem was that they did not allow women into their camps. It took quite a lot of doing to be able to go there and not just take pictures but the time i spent, a week. What did you learn from them . Well, the title of the film is big men. The tag line that Everyone Wants to be big. One of the things i kept hearing over and over again was this idea of wanting to be big. That was one of the things i talk to them about and i think they really help elaborate on it. What about the people that are doing the dirty job of working in these offshore platforms and working in what could be a hazardous condition. . Is billed on a lot of shoulders. Differentmany players. So, the process of making the film was very much about meeting people from all walks of life, top to bottom and try to understand their point of view. I want to mention that is , it of the producing team understand that brad pitt is a part of the producing team, what was his interest, because this is almost a world away from what he does as an actor but yet this is going on in the real world right now. Well, it is a film about capitalists. I actually just saw him the other day at an event of use talk about the film in the context of responsible capitalism and the desire, that is where he wants to see capitalism go. The idea that everyone can learn from it. As far as from what you are able to take away from making this movie, if you had to make it again, would you still go about it in the same way . Well, i had two children while i may do some sort of thing that you do this the same way. It was a crazy endeavor, i killed myself making this. I spent a year and a half traveling back and forth from new york to africa like a crazy person, i met everybody on the son and i got access to as many things as i possibly could and i dont know that i would never quite make this movie. Ok, an investor who is interested in the oil business or just an investment meets you at an event and says, i want your impression, do you think this would be a good investment, do you think getting involved in going on in these economies face in your experience, would this be a good thing to do question mark im not going to give any investment tips. Investment isn that i mean like the efficacy of the legal system. I dont mean investment, i mean the efficacy of the legal system. Veryana and nigeria are different places and theres a lot of money to be made, so it depends on your risk tolerance. , they are very Different Countries with for different circumstances. To the workers in these areas, do they make a lot of money . You mean the people out on the oil rigs . Those are generally not people from ghana and nigeria. Expats. Did they get to be part of this more sophisticated economy . Integrated socome that this becomes their industry . That is the milliondollar question. That is what Everyone Wants to answer. There are lots of laws being put in place to address that. Things like local content requirements. Sometimes they work and sometimes they dont. Can be someone owning a company in maine. But practicality, doesnt work out. Safe making this movie . Not always but not for the reasons that you probably think. There are guys with ak47s running around in the film. It was not because of them that i felt unsafe. There were multiple film crews that were arrested and deported while i was working there. I think our crew might have been the only foreign crew operating at the time. These sure to check this out. , itfilm by Rachel Boynton is entitled big men. Coming up, we will talk about the growth in fast food restaurants, particularly those that feature asian food. Speak to the chief executive of teriyaki madness. Are you looking to have your animals eat a little bit better . We will talk to the chief executive of one pet food company who is looking to give your pets a meal without preservatives or artificial fillers. When you think of fast food restaurants, you think maybe hamburgers, french fries, pizza. In asianhat specialize food, that is a growing trend. Expanded to more than 1600 locations. Newcomer is teriyaki madness. Planning to open more than 100 new stores by 2016. Joining me is the cofounder and chief executive rod ariella rod arreola. Give people the elevator pitch when it comes to what is teriyaki madness . What kind of franchise business is this . Up in seattle, washington where teriyaki is a wellknown concept. I grew up loving it. I love the flavors of it. In 2003, my cousin and my brother decided to start our own concept and moved to las vegas. Why did you move to las vegas . There were too many in testngton and we wanted to it in a market like las vegas where people would come in from all over the country. Also we were a little tired of the rain. Now, youre in las vegas. Then, what happens. You go texas, arkansas. Basin. Ad a great we decided to do this on a national level. We sold about 15 new franchise agreements with multiple franchisees in colorado, california, texas, arkansas. Explain about how the franchisee situation with teriyaki madness might be. Lightly different in terms of the amount of money that it takes, the square footage, the footprint that you need, it may be for different market as looking for something. Exactly. This is a relatively low cost. Were looking in anywhere from 220,000 in on the size of the unit. As of the range of the cost. It all comes down to the consumer, with the customer likes the food. Right. Is designed to be healthier and these are in the locations themselves. We serve Everything Fresh to order. Basically, this is a japanesestyle of cooking. This means shiny. We specialize in that style of cooking and recreate all of our stuff in house, all of our vegetables and meats are cut there. You can take the flavor and the freshness in every bite. People love it for the quality and the clean proteins. One of the things i was reading about is there were major Food Companies that were using these items in the marketplace. Whether it is tysons or land olakes. You notice a difference in the freezer. What is it about this particular flavor that attracts people . I think it is a really wellknown flavor and, the sugar and the suite. For us, is the technique of grilling and the beast charbroiled freshness of the chicken and the beef. This is safe. Lunch as well as dinner. Yes, for both. Any chance that you will expand to include breakfast . We thought a lot about it doing a little bit of fried rice and ask. Where would you like to expand this if you dont already . New york would be great. We have a lot of interest in this area. We have found some partners. Really expanding all over the place. Do you have a favorite . Spiky chicken teriyaki with brown rice and veggies. Gettingare already hungry. Cofounder andhe chief executive is teriyaki madness. People are eating healthy, so why not there and hang ins . We want to talk to the chief executive of one petfood Company Looking to help your pet eat happy and healthier. Global pet expo just concluded in orlando, florida. There were nearly 1000 exhibitors, more than 3000 products were introduced. Americans spent more than 55 billion on pet products. This is all according to the American Pet Products association. One company is looking to grab a slice. Fresh pet. They are the First Company to make fresh pet food, no preservatives, no fillers. Richard thompson, the chief executive officer, he is also the founder. First of all, i am not the founder. Was founded in 2007. Hardened. Eg your we used to own meal mix meow mix. To del any was sold monte. We try to think of the next thing. The next thing was, can we make food without preservatives . Xmeow mix guys but theyre thinking caps on. The only thing we could think of was refrigerated. It is a 20 billion market and in 70 years, that has not been any innovation except dry dusty kibbles. I could take any of those pet foods, cut them open, put them on the floor, and you cannot tell me which they go back in. The innovation has been very small. We have become very innovative in making fresh food for dogs and cats. Tell us about the specific kinds of food. It is very easy to kind of make light of it, say, well, are you feeding and animal food that is better than some humans get and so on. Of the describe some nutritional issues and how that connects to the health of the animal . There are two great trends. Pets. The humanization of they used to sleep in the back yard. But he soon, they are in your bedroom. The other one is health and wellness where people are thinking about themselves eating better and when you look at the humanization of the pets in the house you go, wait, he is part of the family. I am eating fresh foods for my kids. Good for theis family versus preservatives or processed food. Wen you think about that, have to find a way that we could produce it. Finding some of the best means that we would and adding fruits and vegetables. The right complete balanced minerals. Just built a brandnew plant. You said that you are in bethlehem. This is a great spot. He decided that there was nowhere else that can provide the quality you are looking for . This was in record time, pennsylvania. You want to keep your costs down. We found a way to do it. We had to build a brandnew stateoftheart plant. Million state 30 of the art plant that just opened up a few months ago and we are very proud of it. I moved over there so i can cause more trouble. When you have this plant up and running, you have got to have a distribution system. This was the refrigerated plant. This is the refrigerated distribution system. We teamed up with a couple of guys that have thousands of refrigerated trucks. We have to have our own coolers which i hear that you have seen one. They are in the grocery store, in the petfood aisle. We are in target, that co, walmart. Of oure foods one customers. Does everyone want to become like your next best friend because once they hear about this, they say, gee, this makes sense. Tell me about the cap part of it. Obviously, we need different food for different animals. Businesses of our dogs. Now, we will focus in on cap. So, we are awaiting special sizes and palatability. Capcan find that our product is in the. Cooler. We are doing some testing now cap coolers. Obviously, you can use these for treats. But to take a piece of this. The dog will train twice as fast, i swear. They will be your best friend, always. Past the hour. The dow jones adds a quarter of one percent. The s p 500 post a game of five points. Added eight points. Thank you for taking stock. I am pimm fox. Good night. Live from pier 3 in san francisco, welcome to bloomberg west where we cover the future of business. Im emily chang. Amazon prime play and we will announcement of amazon fire tv stepping up competition with apple, google, netflix and more. First, a check of your top headlines. Microsoft ceo says