What weve been trying to do is to continually raise the cost of russia for their actions while still leaving the possibility of them moving in a different direction and we will continue to keep some arrows in our quiver in the even that we see further deterioration of the situation over the next several days or weeks. And putin says that the current sanction could backfire master card and visa. Theyve lost some transactions because of sanctions on russias banks and individuals. Visa posed a fiscal Second Quarter revenue that missed second prosecutors want bank of america to pay more than 13 billion to seattle investigations into faulty mortgage bonds. Settle investigations into faculty mortgage bonds. And in earnings news. Ford missed analyst estimates. It was the bad weather. The recall expenses and venezuelas current fluctuations that wiped out over 800 million in coverage. Matt miller has the breakdown on this. 25 cents a share is what ford came out with. Investors analysts were looking for 31 cents a share according to our survey so they dont like that initially the market shoulder the shares off in the premarket. G. M. Was way up as after its earnings estimates and back down. Its interesting to see that even when you add in the additional items, when you look at the bottom line, net profit, theyre still down 30 from same time a year ago so 989 million is what they made in net and the reason is as you said, 400 million in warranty and repair costs, 100 million in costs for the weather of north america. And turnover 300 million in cost of venezuelan devaluation. A lot of the same things that are hitting automakers as in ford. I dont know why. Seems, well, you know, that happens from from time to time. C. E. O. Focus is on the exactly. Thats been a story that i think ford wishes hadnt stolen so much of the focus in the First Quarter and is definitely stealing a lot of focus now. People are going to be talking about it all day even though it doesnt have that much to do with earnings in the First Quarter. Im interviewing bob shanks, the c. F. O. Of ford later on at about 11 00. Im going to focus more on the earnings but im going to talk as well to him about what he thinks about this transition because, look, ford is in an interesting place right now. Theyre introducing 23 new models globally and thats going to cost them a lot of money. They will make below what they made last year because things like retool the f150 factories costs a lot of money. It costs more. Yeah, theyre going to do that what number of different models so its important to have a steady hand on the tiller fields and as mark prepares hiss entrance, bill ford is hoping this can be a very smooth c. E. O. Transition. And thats not been the case in the last few c. E. O. Transactions. Thank you, matt. Pleasure. Amazon earnings out last night. The c. E. O. Said the 2014 is off to anesk starts. They are kinetic start. Revenues scombrum the wall street estimates. For more on amazons numbers, were joined by paul sweeney. Investors are ok as they have been with losing money but gaining market share. Jeff by a zoe and the amazon bezos en done and the amazon team has done great. The most recent, revenues up. Thats extraordinary for a company with 75 billion in revenue. Theyre growing that fast. Only ali baba might rifle it but heyre huge rival that. Theyre huge. Now, smartphones, paul, and on another side, crime pantry . Right. Heres a company that obviously has dominance in its core Online Ecommerce business but they also have the Financial Capability to invest in lots of other businesses. Its hardware, amazon prime getting into the Media Business, buying content. They just did a deal with hbo. Thats right. So you can snap stream sopranos. I missed the entire thing. Right. You can get it as part of your amazon prime. Theyre all driven theyre all there to drive the ecommerce business. They get into the programming business, the Media Business to attract people to amazon prime to drive more usage. Prirs someone going to call him out on this . As long as his package is working, no. He can say this is nothing new. Youve decided to come on the ride with he. And the stocks worked great. As long as they continue to invest in their core business primarily, they can do something these other investments, whether its the phone or media as long as they can grow in the core business globally, investors see the upside long term. Whats not working in amazon . The International Side of the business is going to be a longer term investment. I mean, they are operating loss of their International Side was the largest its ever been. So so again, thats a patience game. On the International Side, particularly as they think about going into china. Its going to require a lot of patience before the revenue catches up. But again, the domestic needs to be so strong. Its overpowering. Thank you, paul. Paul sweeney of bloomberg industries. Now otahtoa bloomberg exclusive. The board of france will meet today to discuss the potential sale to general electric. G. E. Is in talks to buy energy asset as for as much as 13 billion, making it the largest acquisition ever from g. E. Joining us from london is Matt Campbell who broke that story for us. Tell us the update. Whats this meeting going to be about . Good morning, betty. What we do know is that they are meeting in paris right about now, to discuss and perhaps sign off on this very large transaction with general electric. Allisons shares were suspended in paris early this morning and theyve been suspected hroughout the day. It is very close to an announcement today. What else has been happening with the shares of alstom . Well, yesterday, they were flying up as much as 18 at one point. They settled up about 10 at the end of the day. Investors do like the prospect of this deal and have really, cheered it in the market put what exactly is the deal look like . One thing is part of alstom will be left behind, the business that makes trains and rolling stocks will be separated from the rest of the company with the energy side, which is about 70 or 75 of the Company Going to g. E. And the rest remain in french. So what the new company ends up being is something investors are going to be watching very carefully. And matt, whats been the reaction so far, if any, from the french government . Not very good, im afraid, betty, as is typical whatever you have whenever you have Something Like this going on. There have been son firm pronouncements from the french government to the effect that theyll be looking very carefully at the job impact at alternative. The industry minister who is a very outspoken guy, sort of on the left wing saying that he plans to meet with the executives to discuss what will happen with french workers and hes looking for other solutions for alstom. What those are, we dont know but clearly, g. E. Is going to have a political battle on its hands here. What about counterbids . Thats a very good question. We have not seen any evidence of counterbids so far. But g. E. Has been pretty aggressive in europe over the last few years. This has been a real challenge to seamens and a. B. B. Who are big competitors of alstom and g. E. , both of which are based in europe. Again, we havent seen evidence of this yet but its not hard to envision that scenario in which one of seamens or a. B. B. Or both could try to buy what g. E. Is trying to buy or some other part of alstom. Thank you, matt. Thank you. Hes been reporting this story out and broke that news with us. Coming up, its been collaborating with product Invention Company quirky to develop a new smart air conditioner that is about to hit the market on amazon. Quirky founder joins us in a moment. And plenty to talk about with former treasury secretary Larry Summers, russia, the fed and the economy. Were going to hear from him in just a few moments. If you ever been to a target or bed bath beyond, you might have seen one of quirkys products. I have one of their bestsellers, that flexible power cords. It comes out of a collaborative profit from inventors then vetted through a designer. If a product passes the crowd test, it goes to the market. Since 2009, quirky has developed over00 products and the founder and c. E. O. Ben kaufman joins me this morning. Good morning, ben. So you started this company in 2009. Its been about five years. Youve gone from people consider a crowd sourcing company to manufacturing the products and now kind of being a retailer so what would you consider yourself now . A hodgepodge of all these things. At the core, we consider ourselves an Invention Company. Were here to make sure every great idea in the world shifts. In order to do that, we need to have all the different parts the creation part, the making part and the manufacturing part and now were starting to depble the selling. Whats been the hardest part . Its all hard. Everyone has great ideas but its really hard to get out there. So making things this hard. Manufacturing is hard. Do you eventually want to get out of that . Absolutely not. Thats the fun part of it. So manufacturing stuff is, especially across category. We make electronics and kitchen products and toys. Thats what creates the complexity is how crosscategory we are. Youre sold in target and bed bath beyond. Are you going to expand the retailers . Yes. We have a Great Partnership with home depot. Were in container store, target, p. C. Richards. We put our product where is our inventors deserve those products to be. So we have a pretty vast distribution network. And youve partnered with g. E. Last year. Yeah. And they invested 30 million in your company. And you got to see their patents. They opened up their patents to you and the inven terse. Why is that important to you . The pennant patent system is pretty sound although theres a lot of talk about patent reform and all the things that we need to happen. Our founding father had a really good thought about what patents should be. Provide a source of inspiration for future inventors. Theyre not a source of inspiration anymore so our friends at g. E. Say what if we put our patents throughout and say were open but why would they do that . . Companies pay a lot of money for patents. Because theyre open for noncompetitive uses. The fact that you can use the jet Turbine Technology which is tested to make a better ceiling fan . That doesnt hurt g. E. In any way. Instead, its going to make them a little bit more none royalties and allow that technology to prosper. G. E. Is obviously interested in protecting their industrial businesss and Something Like that and in order to let consumers play with technology, thats what they do. What portion of their patent postal did they share with you . Its portfolio did they share with you . Its growing every day. Its like 30,000 patents. The scale of g. E. Is mindblowing. And youre building a Branch Office near them. Why . We are. Were actually building an office in schenectady, new york. Are you starting the tech startup scene in neckity, new york . Sneckedity, new york . Why did you really do it though . We did it because we are growing a new platform of connected devices and in the world of connected device is knew to consumers so we needed a place where we can scale a little bit more easily than we can in manhattan. What about finding talent . Theres a lot of talent up there. Theres a lot of Great Schools nearby. Everything from r. P. I. To Union College and so on and so forth. But youre going to hire locally. We are. About 180. Here are your headquarters. Youre in west chelsea, right . Yes. You have about 200 employees . Yeah. So ben, this is perfect that were talking to you because yesterday, we were speaking with tony mulkin, who runs the empire state building. That thing was built in 410 days. Can you believe that . I know. Who can build anything in 13 months . Theyre all talking about how to get Tech Companies to hour in headquarter in new york. Let me play you a bit. The hottest sub market in the market is midtown south. Its seen immense growth from a rental or occupancy standpoint and theyre struggling to find places to go because there are limited supply so theyre moving to the area versus of going downtown. Youre in the midtown south area. Youre more lower west chelsea. So, are you seeing that too . Is that where youre seeing on the broubd if are you getting crowded . Were in a building thats 1th avenue and 28th street. And every day, theres people taking our in our landlord. And our building is a place where a lot of companies are moving into. We were the first Big Tech Company to move in. Are you worried given how many more campaigns are coming in that your rent might go up . We signed a longterm lease so im good. But if i were in another position and i didnt sign a longterm lease, i would be a bit worried. How long if like a 15year lease. That is unusual. It is. We love our building. Thank you. Hang on with me. Well talk with one of your inventions. Stay with me because next, were going to meet one of bens inventors. Weve seen the first product develop with g. E. , the smart air conditioner you see right there which you can buy on amazon. You can preorder for 300. It is 26 minutes past the hour. Which means ploom television is on the market. Scarlett fu is watching the early trade. Were headed lower. It does. And were basically following european markets and emerging markets lower as well. S p, Credit Rating agency cut russias rating to one level above junk. So youre seeing pressure from over jeas. And futures down by more than five points. We did have some earnings that people are reacting to. Amazon and microsoft are reporting yesterday after the market closed. As for the treasury markets, there is some buying there. That is pushing the market lower. The twoyear yieldings, 43 visa points. Were on the markets once again in 30 minutes. Scarlett, thank you so much. Heres a look at our top headlines. Union officials are getting ready to put the regions banks through the toughest recession theyve ever faced according to three people believed on the matter. The bank will be put through a recession as part of stress test which will start in may. Previous tests were criticized for failing to uncover weaknesses that banks that later fail. Microsoft led by new c. E. O. That is beginning to pay off. The income was at 68 Cents Per Share topping the estimate to 60 . And sales matched projections at 20 billion. And there was a hijack scare on an australia plane from brisbane to bali, indonesia. A drunk passenger tried to enter the cockpit. The 28yearold was unarmed and at no time was the safety of others on board ever questioned, virgin said in a statement. And you are watching in the loop live on Bloomberg Television streaming on your tablet, phone and bloomberg. Com. And i want to bring in ben kaufman and a man that you might call a quirky success story. Garth and leslie. Well find out when this product goes on sale. He was frustrate with the with his own air conditioner and proposed a new design. And the result was a smart window air conditioner developed with g. E. Garth, great to have you with us. Thank you. Youre a former department of Energy Official . Yes. I worked with them for quite a while. How did you two meet . I first came in contact with ben via the tonight show with jay leno when he was pitching some of his products and talking about quirky. Ben was . Yes. And talking about how quirky worked and what they did. What made you say wait a minute. Im going to call this guy up . Well, i didnt call him up but i jotted down the u. R. L. And i went on the site because i was in the process of coming up with ideas. And most inventors get to the point where their ideas are fine and theyre ready to do something with them but they dont know how to move to that next step or they dont have the resource. And that was you . And that was me. Ben and quirky filled that gap. What is this, exactly . This is a really smart windows air conditioner that gives you lots of flexibility. It has lots of capability to allow you to manage your air conditioner remotely or just to help you control your use of energy. And at the same time, maintain a comfortable environment for yourself. Now, i saw it on the amazon page. A quirky and g. E. Rose ros air conditioner. Garth fist the box somewhere. How does g. E. Play a role . Theyve been making air conditioners for like 80 years. And when we found garths idea, we already had our idea with g. E. s appliance, some of the base technology, the compressor, the way the airflow works, that was taken from g. E. s sort of intellectual property and know how. And we layered on design. We layered on technology. We layered on the algorithms and all the smarts that will he had. Did you know about that stuff . Were you looking for quirky and towards a company like g. E. To help you with that aspect . You have this great idea but what about the nuts and bolts of it . I did know about quirkys relationship with g. E. I was looking for a company that would help me move from the idea stage to realizing an actual product and seeing it on the shelves. How does this work for g. E. . Wheres the revenue sharing here . So we give g. E. A bit of a royalty when this thing sells. So thats how it they get a royalty. And you get paid for it. He gets cut into all of the products. We share up 10 of our revenue with the community. Garthen will be a big part of that on aros. Im excited about that. We are excited about the product and how well it will do the marketplace. In a couple of weeks we will have it in stores and hopefully it will do well. What has been the feedback so far . You already have people writing it on amazon with lots of questions. It is incredible. It is a little more defensive than a regular in this expensive than a regular air conditioner. From a designed giveaway is a beautiful product of and then when you think of all of the things that it does that it will actually they do money on your energy bill, that your home will be cool that when you walk him. C. The summer your a will not have to crank all day long, it will just cool your apartment down. You could just hit your smartphone and control of entering the thing on. The air conditional will start cooling off. It is freez