Numbers, we see a little bit of an improvement. It is really incremental. Mainis really one of the benchmarks. How many cases of the carbonated soft drinks and soft drinks more broadly do they ship. You looking at unit case volume of two percent. This gain was international. It was up two percent. North american volume was last. This is an ongoing issue that cocacola has been facing. Companies earnings per share came in line with estimates. You can see that shares are rising as people look at the volumes numbers and earnings numbers. Ceo reallyn the focus on cost cutting as a way to make up for that. Trendroadly, the secular is that we are seeing the appetite, especially in north carbonated soft drinks declining. We heard ken shea talk about that in the past hour. Seeing concerns about aspartame and diet drinks. Thank you so much. Julie hyman turning to the economy. Americans hate inflation. The feds theoretically hates inflation. Aboute people so worried the falling inflation rate ahead of the latest government report . Turning to michael mckee. I imagine people are getting what this says or does, we are not seeing any inflation and begs a lot of questions. Lex it does. People do not like inflation. A sign of economic weakness. No one getting the benefit anywhere. Paying your bill back with dollars that are worth less. Also, you do not want to get any closer to deflation. That means no one buys anything down the road. The fed target is two percent. The have been below that for more than a year now. They put that in place when inflation was well above two percent. They are trying to get out of that. Generally week economy is the real reason. No pricing power. No one is getting raises and no one is able to raise prices. Energy and Commodity Prices falling as well. That has been starting to change. The government sequester, a two percent cut in medicaid payments. That pushed the sequester down starting last april. We will not see that reflected until may. Were starting to see inflation may be bottom. The forecast is year on year basis we will probably see a little bit of inflation. I think we will all take a little bit. Turn in inflation, if we do see 1. 4 , is that something that concerns the fed or something they will tear on . Not yet. They use for the pc the used the pce index. The fiveyear forecast for inflation. Until that rises, the fed will not be concerned. This is a global problem. Inflaming ion inflation 1. 4 . The british reported their lowest inflation rate and for an a half years. Michael mckee, thank you very much. Moving and shaking. Arianna huffington to come out with a book that is inspired by exhaustion seven years ago. She called it a class of wakeup. All classic wakeup call redefining success in creating a happier life. She spoke to charlie rose about it. Lex i cannot tell you how many people come after me and say i do not remember the last time i was not tired, and i feel sorry because it does not have to be this way. Are livingly we under collective delusion it has to be this way. People wholy admire are working 247. That is a problem. Tois not something congratulate people for. They pay a very heavy price. You can watch all of the interview tonight at 8 00 and 10 00 eastern right here on bloomberg tv. That makes the next mover and shaker is my guest for the hour, tim draper, founder of draper fisher. An early stakeholder in companies from skype to tesla. He has a bold vision for california economics. I wantgive to your theet to your reaction for virus heartbleed. Is this justified . In some ways it is justified. There are great companies. Solved thesey problems. There is a company that has made it so you can have one password and keep changing them. You just keep moving your password around. There is another opening called paying the identity ping identity. I want to get to some of the solutions in a minute, but are you surprised by this and then of itself, the idea that the internet is as small marvel at it is because of heartbleed. It was it came out of a relatively Small Company that was not as secure as it probably should have been. Potentialere are some catches out there, but there are always solutions. Should be very careful about using password information for the next few days and weeks until they figure this one out. I think that is right. There is another solution. There is a way of always giving you two points of authentication. They do it through social. Facebook what the world is in the other world and they put them together. I think there are a lot of solutions. Knowe in the world should that they should take some stock in their identity and make sure it is secure. A big space. You are an investor looking for new opportunities all the time. You mentioned in companies. I think it will be an ongoing. I think identity will be another space. One concern is companies tend to play catchup. They get to the issue a little too late. You looked at target. You had opportunities to fix security situations all along. They saw the consequences. That Companies Need to understand about security before Something Like that happens . I think great visionaries, great entrepreneurs come up with solutions that are well ahead of what these are after. The thieves see what is there today and what they can grab. Entrepreneurs and think well ahead of that. I have heard people say to me, the problem is until it becomes an issue, a lot of them do not focus on it. In some cases you have a chief Technology Officer that his language and the ceo that is effectively speaking another language. Ceos that perhaps are not recognizing the threats as early as they should. I think that is right and is one of those things. Our Smaller Companies are going after the identity problem. They do not necessarily recognize they have a problem until Something Like this happens. Then they all run to their door. Two Different Things in place. Me you are saying the consumer can take more responsibility to protect themselves. Both. Think i think the Consumer Needs to take care of themselves and watch the identity. They need to use some sort of identity package. Then the corporation usually waits until something horrible like that happens and then they say we better shore up against that he does all of the shareholders will be concerned, customers will be concerned. When youy incredible think of the world in which we live today where all of our information, personal information, Financial Data is out there available for anyone. You awake atp night or make you pretty concerned. Trust the ways you world and live in the world and it is a great world. I think honestly has a premium now. Moree are realizing the honest they are the better off all of us will be. So there are getting to be fewer and fewer thieves and generally crime no longer pays. We are being watched. Stay with me. Tim draper here for the hour. Venture capitalist tim draper. Coming up, your chance to be the in crowd. You how. Ell plus, like in the fast lanes. That is what you will be living if you can afford to buy this. Loop. In the back, everyone. Loop. Watching in teh lhe i want to bring in my guest, tim draper. I want to ask you, which of the areas in technology right now are you most in trade about from an investment perspective . Is bitcoin. T i think it really has the virtuall, it and other currencies have the potential to transform the world ready much the way the internet did way back when. I have heard that before. Of all finance, all commerce everything can be transformed. It is like one abstraction past where we are today. It used to be we trade shells movedrvices and then it to gold for services. Then it was a note that says we will pay you gold for services. It is bitcoin in the current form as a currency, or is it the Technology Behind bitcoin that will eventually survive . It turns out in any industry there is always some movement and always a possibility there are other types of coins that become more prevalent. Most of the entrepreneurs, boost companies, my sons boost incubator, they are all building the infrastructure around bitcoin. The reason i ask the question, they have gotten so Much Negative publicity, you cannot help but make the comparison. Napster doing a pretty great thing when it started out. It got saddled with a ton of legal lawsuits and threats of people going to jail. Kids were downloading and sharing music files and parents for getting hit with lawsuits. That could potentially bankrupt them. Consequently the industry shifted away from that. You look at bitcoin and the association with the road and do road and the extreme libertarian groups. I only ask, with it going will bitcoin be able to survive all of that . I think it will. The internet itself has that weird baggage around it. There was pornography going across on the internet and issues of security like we talked about earlier. There were many issues as the internet was getting built. As we got more and more comfortable with it, it became a bigger and bigger part of our life. I think the same thing will happen with bitcoin. How much are you and your son and best it right now . I have some bitcoin and investments in the number of bitcoin companies. And they areneral, trying all sorts of Different Things. One in the insurance company, using bitcoin to buy things off of the web, anything you need. Manning bitcoin atm. Like the only reason i ask is you, mark andreessen, fred wilson, a number of people have isted this and saying this great, but then when bloomberg investigated the total number of dollars being put to work here, it came up with 110 million. In the scheme of things, it seems pretty small. The total value is about 7 or 8 billion. A good, successful business. Is the volatility ever going i think eventually it will find its place. It is a lot less full of toll than the currency and argentina. That is an interesting point. If you are someone living in a country that is dealing with crazy fluctuations in your own currency vomit and then Something Like bitcoin own currency volatility then Something Like bitcoin will look more stable. You have the u. S. Dollar. Au do not have to worry about 30 price fluctuation and the span of a week or two. That is true. I think it will bounce around for a while. It has been somewhat stable. For quite a while now. And iceland they basically a few weeks back that a massive drop. They said here we all go. The government has said you can use it but you cannot use it outside the country of iceland. How is it doing . It has potential. Any limitation like cannot use it outside iceland creates a little bit of a limitation on how fake it can be. Not necessarily going to take over the bitcoin space. A lot of variations out there. Very interesting. Tim draper, venture capitalists taking with me. We will talk more about tech valuations and his plan for california. Can they get its economy back on track . I will be right back with that. You are watching in the l oop. I am trish regan and four betty liu. 26 minutes after the hour. That means bloomberg tv of, our were you. A look at Early Morning trading. Futures are pointing to a a suggestingn equity markets will continue after yesterdays rally and try to make up the selloff we had last week. Not a lot of catalyst in terms of Economic Data out today. It is really earnings driving the equity markets. Johnson johnson and cocacola seem to be helping settlement sentiment. The ftse index, both lower. Higher earlier. Sparking concern about inflation. Rose 1. 6 . The lowest level in 4. 5 years. It is missed confidence came in a little bit disappointed. And china, asian markets broadly lower today. The report showed the money supply in china increased at the slowest rate on record. The fueling concern about potential slowing of the chinese economy. We will be on the markets again in 30. Thank you very much. Getting to the top headlines. Cocacola reported firstquarter profit that met estimates of global volume sales increased. Earning . 44 per share compared to . 39 a year ago. The net income fell seven. 5 in the quarter. It is tax day. You have until midnight tonight to file your tax return. Sky gazers got treated to a special Lunar Eclipse last night known as a blood moon. In the total Lunar Eclipse turns blood red as it passes into earths shadow. If you missed it last night, there will be four more between now and september of next year. You are all set. I want to pivot to the economy. Tim draper here with me. I know you have been worried about californias economy. Sufferingbeen arguably from pretty big problems because of having high tax rates. Stubborn unemployment and Education Statistics that are very weak. We spoke with neil cosh kari kashakri now running for governor of california. To bring manufacturing back to california. It is great that apple and tesla and other hightech Companies Design great technologies. Lets produce them here, too. If we do that, we can bring down 17 by putting people back to work. Is it realistic to think that manufacturing come back to california right now. Lex i think the reason i put six california is on the ballot is of this. California is losing jobs. Sony and disney. They have lost jobs in california. Justccidental petroleum sent 6000 jobs away to texas. Taxexas has a much better right. Much better tax program and better for new companies. California and it sells in its current state never be very good at attracting business. We are a bad education system. So many things are not working in california because it is so big. Tos Central California were break off and be part of this, they could easily be part of a greater Manufacturing Sector for california. Since it bottomed out in 2009. Are losing jobs. The number of jobs have gone up that people have, too. They are losing jobs to these other states. Highvalue jobs. We could still have very high unemployment and california. Would still have to be approved by the u. S. Congress. Putting many more democrats into congress is not going to happen. Congress, republicans will not let it happen. We have to get to the economic numbers really quick and then can come back. Consumer prices rising. 2 . Core rate up. 2 . As if thes expectation was for. 1 in the month. Number, this year has been coming in a little bit bigger then people had anticipated. 1. 5 . Versus the survey of 1. 4 . Mckee, a little inflation these days may not be such a bad thing. To see some price pressure. You want to know the slack is being taken out of the economy. It also means debtors are little the better off. It gets closer to raise Interest Rates. We havee argued bottomed out. This is some evidence we are. Is not you mean there inflation . I go to the Grocery Store. Food inflation has been high, up 1. 7 on a yearoveryear basis. That is something people sees very visibly. We do see a price drop in gasoline prices. The bill at the Grocery Store has gone higher. He wants people to go into the store and buy something today whether rather than waiting until tomorrow. Do not feel like ok, i need to get that now. That is the deflation concerns of everyone has been worried about. Hopefully we will not go anywhere close to that if we have bottomed out. Concerns about california. Your idea is to set up a situation in which the state is buta huge political unit six different states onto themselves where the smaller they are, the more agile they will be. Central valley is about agrarian and feeding the world. The far south are very concerned about the border. I think all six states will do better as a result of this. The federal government has basically said of course this will be an issue because we will have to approve it. It turns out eventually one party in power will decide it is in their best interest to have six californias. Eventually it is going to happen. In the meantime they can self organize. They can all work is somewhat independently. It is a great thing. Competition is great. We have capped the tax rate many years ago. I think it will make a big difference. A different place of doing business. Maybe top 13 and another state want something else. This inn you do california and . Austen is a whole lot different than dallas. Texas does not need the federal governments permission. They can be five states if they want. New york might want to be a couple of different states. Manhattan different from upstate new york and long island. True. If i am upstate new york, i like the tax revenue manhattan is bringing in. Manhattan might say we was bled off, but there is some transfer of wealth from manhattan into the rest of the states that the rest of the states benefit from . There is something to that. That money does not make it all out to upstate new york. A lot of that starts in manhattan and ends in manhattan. If you talk to someone in upstate new york, they may want from manhattan than they have. I think that is definitely true in california. We are seeing that starting to happen, that over time were starting to see the polling change. People are saying we want six california. What end of support are you getting . It is really interesting. Were getting a lot of support from the places that are the have not. The people in the poorest regions of california are really anxious to have this happen. You would think it would be the opposite. You would think Silicon Valley hanging in the most taxes would want this the most. It turns out the poorer regions field they are being short changed. And jefferson trying to leave the state for years and is saying no taxation without representation. All of them are not below. We have very little representation. We do not really care about. We do not really want. Lex fascinating to watch. Not really doing so. So much. E, thank you coming up, we will be talking about this environment. Carl pope, former Sierra Club Executive Director will be joining me. He will be here on set, looking at Investment Opportunities in clean energy and talking about what it is that cities need to do to be more environmentally friendly. Also, aston martin unveiling two special edition cars at the new York Auto Show this week. I am back right after this. Welcome b