Vice grip, the man who is building a 1 billion empire out of vice media. In pop, a fender bender to find out how the classic guitars are made by hand right here in america. Lets kick it off with what everyone is talking about today. The search for Malaysian Air flight 370. It has been just over two weeks since the plane disappeared after taking off from kuala lumpur. Multiple countries have searched the waters of the southeast by boat, plane, and by satellite. Investigators have analyzed mountains of data. At most, there has been only speculation as to what happened. Today, we heard from the malaysian Prime Minister on the latest analysis of data from a british satellite provider. Here it is, in the raw. Based on the new analysis, we have concluded that mh370 flew along the southern corridor and that its last position was in the middle of the indian ocean, west of perth. This is a remote location. Far from any possible landing place. It is therefore with deep sadness and regret that i must inform you that according to this new data, flight mh370 ended in the southern indian ocean. Malaysian Prime Minister speaking earlier today on the search for the missing passenger jet. While he gave no concrete answers, he declared the search will be limited to the southern indian ocean, some debris was spotted by chinese and australian search crews. The objects could be received by tomorrow morning at the earliest. The Prime Minister will hold another News Conference tomorrow. The other story is the ongoing chess match between russia and ukraine. Today, president obama and the netherlands with leaders from europe, china, japan and other countries. He spoke earlier at a News Conference with his dutch counterpart. Europe and america are united in our support of the Ukrainian Government and the ukrainian people. We are united in imposing a cost on russia for its actions so far. Prime minister rutte pointed out that the sanctions would bring consequences to the russian economy. We will continue to coordinate with the netherlands and our European Partners as we go forward. The big question now is russias continued aggression in crimea. Russian military forces stormed multiple Ukrainian Military bases today in crimea. We are very much concerned about the deployment of Russian Troops on our eastern border. The Ukrainian Government is trying to use all their peaceful means and diplomatic means to stop russia. But people are also ready to defend their homeland. That is what lawmakers are worried about as well. They need everything from fuel to tires to sleeping bags. This army in ukraine was devastated by yanukovych. Lets help the Ukrainian Army get on its feet as a selfdefense force. Even with all this discussion about what is going on in russia and crimea and ukraine, the markets have not been hurt at all. The question is why . In ukraine, i would think this would be negative for risk assets. One reason is because it looks like russia really has the leverage. We are not going to put boots on the ground in ukraine, they are not a member of nato. It gets more serious if russia moves into a confrontation with nato, then it is an enormous impact. Ukraine will dominate talks at the group of seven industrialized nations meeting today in the hague. The u. S. , canada, france, germany, italy, japan, and britain. At the beginning of the month, the group of eight were planning their meeting in sochi. Preps for that meeting have been suspended and the number has been trimmed by one. German chancellor Angela Merkel says that russia is still a member of the larger group. What makes google cofounder and ceo very excited about the future . Believe it or not, it involves balloons. We will hear from him next. Are sports stadiums worth the millions and hundreds of millions, even billions of dollars dished out to pay with them . We head to fort myers, florida, where the red sox are finishing their spring training, coming up in sports. Teen warriors topped the muppets at the box office. Divergent took in 56 million in ticket sales, the latest feature from lions gate targeting a young audience. The muppets most wanted rang up 16 million in second place. It has been nine months since Edward Snowden made public the nsas surveillance packages. A Chinese Company today released a statement condemning nsa attacks on its network. Friday, tech giants like Facebooks Mark Zuckerberg and former ceo of Google Eric Schmidt met with president obama. Googles cofounder and ceo weighed in, sitting down with charlie rose for a rare interview in vancouver. It is disappointing that the government secretly did all this stuff and do not tell us. I do not think we can have a democracy if we are trying to protect ourselves from the government for stuff we never had a conversation about. I dont mean we have to know about a terrorist attack they are worrying about protecting us from, but we have to know what kind of surveillance the government is going to do and how and why. We have not had that conversation. The government has done a tremendous disservice to itself by doing all that in. Never coming to google to ask for anything. Not google, but the public. We need to have a debate about that. Where we cannot have a functioning democracy. It is not possible. I am sad that google is in the position of protecting our users from the government doing secure things that nobody knows about. And then there is a privacy side of it. The privacy side the world is changing. Carry your phone and it knows where you are. So much more information about you. That is an important thing and it makes sense why people are asking difficult questions. We spent a lot of time thinking about this and what the issues are. I am a little bit i think the main thing we need to do is provide people a choice. Show them what data has been collected. The search history, location data, we are excited about incognito mode in chrome. Giving people more choice and more awareness of what is going on. All right. Something else larry page is passionate about is artificial intelligence. It used to be the stuff of science fiction, but the 40yearold billionaire wants to make it more of a reality. This is one of the most exciting things i have seen in a long time. The guys who started this company, he has a neuroscience and Computer Science background. He went back to school to get his phd and study the brain. We are seeing a lot of exciting work going on that crosses Computer Science and neuroscience in terms of really understanding what it takes to make something smart. And do really interesting things. Where is the level of it now and how fast do you think we are moving . This is kind of the stateoftheart right now. Understanding cats on youtube, proving voicerecognition. We use a lot of Machine Learning to improve things incrementally. Those examples are really exciting. It is one program that can do a lot of different things. We have got the image of a cat. This is how machines look to cats. There it is. Can you see the cat designed and seen by machines . This is learned from watching youtube. There is no training or notion of a cat, the concept of a cat is something you would understand and now that the machines can understand. Weird. One google project that has taken off, literally, the balloon project. The mission is to bring Internet Connectivity to everyone. Focusing on access and talking about the future. We recently released the balloon project. It sounds totally crazy. I can show the video here. It actually, two out of three people in the world do not have good internet. We think this can really help people. Its a balloon. You get access to the internet. Why does it give you access to the internet . You had to figure out how to make balloons possible. They did not have to be tethered. This is a good example of innovation. We have been thinking about this idea for five years before we started working on it. It is really how do we get access point up high, cheaply. Normally you have to use satellites and it takes a long time to watch them. You saw how easy it is to launch a balloon and get it up. Using the power of the internet, i did a search and found that 30 years or 40 years ago, someone had put a balloon up and it went around the earth multiple times. I thought why cant we do that today . That is kind of how this are you at the mercy of the wind . As it turns out, we did weather simulations. If you control the altitude of the balloons, which you can do by pumping air into them, you can control roughly where they go. I think we can build a worldwide mesh that can cover the whole planet. That is freaking cool. Watch the full interview with larry page tonight, 8 00 and 10 00 p. M. Eastern. Only right here on bloomberg. Still ahead on lunch money, a conversation with the brain behind vice media. How the news outlet won the backing of rupert murdoch. The pros and cons of building sports stadiums. We hear both sides of the argument, coming up in sports. In sports the stadium debate. If you build it, will they come . Stadiums can cost taxpayers millions of dollars or billions of dollars, like the jetblue park in florida, where the red sox have their spring training. Some argue it is worth the business and it attracts. Phil from the university of south florida says it is not. He spoke with mike mckee. We have never found that spring training has to do with the amount of spending that goes on in any location. We see teams moving around and you can look at a county and see whether or not the team comes to the county, do their sales go up. The team leaves the county, do their sales go down . We have never found real evidence. Even if the claims of all these people are true, the amount of tax revenue generated by the spending that the state claims is not enough to cover the operation and maintenance costs of a stadium. Do we go from here to additional sports palaces . Are the american taxpayers starting to get to the limit of what they will pay for these things. I noticed an interesting trend in miami and dade county, they build a new stadium for the baseball team, not necessarily the most favorite team. They built the marlins a baseball stadium. The marlins immediately cut their spending on players to the bone. The team was abysmal this year. The stadium has mired the city and debt. They turned around and asked for funds to improve dolphins stadium and the taxpayers and legislatures said no. Maybe the trend is changing. Mike spoke with the lee county organization that gave the red sox the subsidy for the 72 millionstadium, he says it was an investment and for his own. Unlike Major League Baseball facilities in hometowns, this is a tour as a venue. It draws hundreds of thousand people from boston. We also manage and operate the Minnesota Twins facility and it draws many people from the upper midwest. When spring training is over, our office uses the facilities to program 200 days of amateur Sports Events. The tax paid for the construction, you have got to pay for the operation. Do you make a profit . No, we do not. We spend about 1. 5 million per facility on maintaining the facilities. At the same time, that 1. 5 million is generating around 50 million of Economic Impact for our community through these amateur Sports Events of the rest of the year. When this is all paid for, you will have on this paid half a billion dollars for this, couldnt you have done Something Else for the community with that kind of money . It was built with bed tax dollars, which are restricted by state statute to only certain things you can do. There are people who think that maybe we could have used the dollars to two additional beach and shoreline nourishment projects or we could have spent more marketing on tour is him, International Tour efforts. It was a policy decision and we have been in the business of spring training since the early 1900s. Our elected officials at the time thought that using 20 of our bed tax to host spring training was important. The Minnesota Twins also play in fort myers. The president of the team says it is good for lee county and for the fans. There is a significant roi for lee county when you consider that 60 of our fans, game in and game out, are coming from well outside of the county. They are spending money on hotel rooms, restaurants, and at local attractions. It is a significant driver of economic development. It is a winwin. The red sox got their new stadium a couple years ago. You can get upgrades here. Did the twins ever putting money into it as well . Your own equity . We are putting money into it. We have about 8 million that will be invested by the team, not to mention that we will be putting dollars and every single year in terms of people buying homes, players training here yearround. There is an economic benefit to the county beyond spring training. What do you get for the money and the stadium . There is dollars in Player Development, the Training Facility and conditioning elements. The dollars are going into fan amenities. Fans expectations have changed. They want a wider concourse and better concessions. They want the opportunity to have technology and wifi, things of that nature. A lot of dollars are going into enhancing the experience for baseball fans. It gives us an advantage, we are doubling down and investing on that. We are building a Player Development academy as part of this. We think that will be a game changer as players involved. We do believe that spring training, and specifically a partnership with the community in southwest florida, is a difference maker for the twins. The new york Yankees Stadium in the bronx is the most expensive major league. It cost 1. 5 billion, taxpayers put in half of that. The franchise does not pay sales or property taxes in the bronx. Another allamerican pastime, rock n roll. You cannot have rock n roll without guitars. We will show you how the fender is made. [guitar music plays] this is lunch money, on bloomberg television. Streaming live on bloomberg. Com, also on your tablet and cell phone. I am matt miller. Todays moving picture, the video is the story. A mudslide in washington has killed eight people and a dozen more are missing. It occurred in a rural area north of seattle. It destroyed at least 30 homes and started when a large chunk of rainsoaked hillside split away. The millard is 15 feet deep and has slowed rescue efforts. A busy shipping channel in houston remains closed after a weekend accident, nearly 170 thousand gallons of oil spilled after a barge collided with another vessel. The channel connects Galveston Bay and the gulf of mexico and handles as many as 80 ships a day. No timetable for when it will reopen. In chicago, a subway train jumped the tracks and ran up an escalator at ohare airport. The Early Morning accident injured 30 people. The train was traveling faster than normal when it entered the station, crossed the platform, and scaled an escalator. Authorities are questioning the operator and reviewing footage to try to determine the cause of the accident. No fatalities reported. In activists, carl icahn is at it again. We need to bring you up to speed in the battle over herbalife, the Nutritional Supplement maker has agreed to give carl icahn three more representatives on its board. Putting icahn a step closer to gaining control over this company and raising the stakes one more time in the standoff with bill ackman. Erik calls it herbalife, because he is canadian. Bill ackman is close to breaking even on his bet against hls. Ackman bet against herbalife in may 2012. You can see the drop, as dan loeb and carl icahn came to herbalifes rescue, the stock battle back. The federal government opened an investigation into herbalife and the stock has fallen. The news from carl icahn has sent the stock back up. The war over herbal life goes on. Dwayne stanford explained it to market makers. These Board Members all come from icahn enterprises. Two are executives with the company and the other is a director for icahn enterprises. He is beefing up his visions from 2 to 5 on the herbalife board. This comes as bill ackman has been able to get this investigation he has called for, the ftc now looking at the company. The stakes have been raised and we are going to be in for quite a battle. You were reporting that after a year of losses on the short bet against herbalife. Bill ackman might be near break even, no longer losing money. That is right. Based on our calculations, he is somewhere near breakeven. A lot of that coming in the last week as the ftc says they are asking for more questions of the company. It creates uncertainty among investors. You have seen a considerable amount of scrambling as people tried to figure out what is going to happen at the end of this investigation. You could have some sort of finding along the lines of what bill ackman has asked for in terms of it being an illegal pyramid scheme, or it could be a slap on the wrist. Perhaps they come back and there is no action at all. That is what people are waiting for. How certain can we be about ackmans financial position . He put about 1 billion on a short position against herbalife to start off with in 2012. Hard to believe with so much time has transpired. Then he restructured his trade to limit his downside, presumably that cost him something. At what point, if ever, will we be able to know where bill ackman stands . The picture is more cloudy from when it was a simple short bet, the options make it very difficult. We have done some analysis looking at some of the average prices in the period he was buying the stock. He started buying may 1 of 2012. This was while David Einhorn had asked questions on the