Television. Ufc is taking over the world, 178 countries. We are kicking it off with what everybody is talking about a twist in the search for the Malaysian Airlines flight 370. Authorities say one of two passengers who traveled on stolen passports was from iran. They say the man had no links to terror groups and was trying to emigrate to germany thats right, interpol and malaysian Authorities Say the other passenger with a stolen passport was iranian and wanted to live in germany. His he said the two were probably not linked to terror groups. The fact that they were traveling with stolen passports led to the speculation that the disappearance of the airplane was linked terrorism but investigators still do not know what happened to the plane or even where it is. It will take time but this will be found. There is a large search area, it takes time to cover it and there is activity two prongs of activity. One is the certainly others looking at everything behind the scenes of this flight. They are right now looking at any thing that might be available. Have aircraft typically location parameters and im sure theyre looking through those files to see if i can find any kind of anomaly. Age of gps, any number of Technological Advancements to find lost items. How does an airline lose an entire airplane . A there couldve been catastrophic explosion that would disrupt the electronic system. Pilots usually still a power and theyre still Radio Communications going on and they can communicate. Its externally unusual for one to suddenly disappear. That require something catastrophic to happen in the air. What about the air France Flight . It was in a remote area and this is less remote. These things happen from time to time but they are extreme the rare. Happenedr france crash in deepsea in the search for the Malaysian Air flight is happening over Shallow Water. Shouldnt that help . It will make it much easier to find the black boxes that have apinger a system that sends out a single a signal and the waters here are in the hundreds of feet range instead of thousands of the. It really increases the probability of finding this accident. Have ant that black box device that helps it located . Its called a pinger, a signal that will be met for a long period of time and can be heard underwater for miles away. There is a good chance they will find that very soon. Its unthinkable in that Shallow Water that they would not find the black box. Thats quite a story. How do airline said handle situations like this . Bob crandall is the former ceo of american airlines. The history of aviation incidents teaches us not to speculate. As these things happen, it is almost always true the history n that, in the end, what occurred is different than what anyone would have speculated. In terms of saying anything about the incident itself, the only sensible thing to say is we do not know. We know that boeing officials have traveled over to asia. At what level are the discussions taking place between boeing and Malaysian Airlines given that there is so much mystery about what happened . Sure that theu can be chief executives of both companies are directly involved. This is clearly something of a matter of great concern. Lots of peoples lives are involved. Course, there is a lot of concern about the airplane and aviation safety generally. I think its very important to keep in mind that this is one incident. In an industry which has built them extort barry Safety Record and incident about which we know nothing. When we find the wreckage, and they will find it, and when the wreckage is reconstructed then we will know what happened. It may well be many months before those things occur. Marybarra is handling a situation of her own, their biggest recall in the latest from corvette designers who want to map your backside, really. Sure that the chief executives of both anpanies are directlyits backr american and two russian astronauts, the trio floated to the International Space station into a capsule for the trip home. They had been in space for 160 six days. 3. 5 hours later, theyre touching down in kazakhstan an american and two russian astronauts, the trio floated to the International Space station into a and rescue crews met them and reported all three were in good shape. Welcome home. We have some breaking news for you there is a deal with mens wearhouse buying joseph a bank for 65 dollars per share in cash. That is one point 8 billion with cash and also with debt. This has been the ongoing saga of the two companies of who will buy whom and mens wearhouse seems to have one. They seize the dylan added to earnings in the first full year. As part of the condition of the upl, joseph a bank is giving pa its two byc Everest Holdings and eddie bauer,t two companies there are looking to buy instead of a merger. Joseph a bank is withdrawing its offer to buy 300 million of its stock. Mens wearhouse will be purchasing joseph a bank for 65 billion to add to earnings in its first full year and we will continue to monitor these headlines. We will keep you updated. This is lunch money, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com. Big news out of gm congress is launching an investigation as to why the world second largest automaker took 10 years to recall 1. 6 million faulty vehicles linked to 13 debts. Gm plans to conduct its own investigation led by anton the lehman probed brothers downfall. The national Highway Traffic Administration is giving gm until april 3 two explained the decadelong delay. Company culture of slow information from the engineering ranks to the Corner Office may be at issue. Tm investigated faulty switches in 2004 but on march 4, the new did noty barra says she learn of the situation until a few weeks ago. That goes for the other top executives but Industry Experts explain it this way at the old gm, people did not push that is up the chain. Here is the detroit euro cheap. Ever since they emerged from bankruptcy, that is what they were trying to do is to cut through this culture and change the way they are thinking and speed things up an. There is a lot of bureaucracy in automakers. Look at datae to and think about things for they like to study them and then theyd like to act once they know the facts. In this case, it took them too long to know all the facts. Barra has top, change the culture of the company but down in, they have to change the seeds of the corvette. The iconic sportster has had a less than stellar reputation. The new Team Includes a designer fresh out of grad School Promises great things. You am matt miller and as can see, i am slightly terrified but also having the time of my life doing doughnuts in a 450 horsepower corvette stingray. My driver is a 28yearold engineer behind the cars new critically acclaimed seats. How do you like the seeds . Unbelievable. They are very supportive. The seeds were at the top of the gm priority list when overhauling the legendary sports car. The old ones were universally criticized for being cheap and flimsy. The important thing about a is its your main communication with the road. You feel everything going on and that is what is communicated and that will help you get the most out of the car. One of your main jobs is to be the butt guy . I wouldnt go that far. You have to look at the population that buys the car. Have buyers from females up to 90 male so its a broad range. You want to finetune where that seat will be. This time around, General Motors created the seat drive team comprised of employees of all different shapes and sizes. In a special seat leprechaun additional pressure mapping system have buyers from femalesp to 90 male so its a broad range. You want to finetune where that seat will be. This time around, General Motors created the seat drive team comprised of employees of all different shapes and sizes. In a special seat leprechaun additional pressure mapping system records 4600 points on your back and and chevy use the data to create a seat optimized for comfort and support. What makes them so much better than the previous generation . The previous generation did not have as much structural integrity. Ats are molded of cast magnesium. It is a move that rings the corvette closer to supercar status. That has always been the egos of corvette, it has always been a car i can take to work on monday and on saturday, i can go around the track. Dont kill my cameraman. I wont kill the cameraman. That looked fun. Volkswagen,d by they take the number one spot from bmw, selling the most luxury cars in the world so far this year. Number one was originally the goal set for 2020 and looks like audi is ahead of schedule. I congratulated the ceo this morning. Please dont exaggerate. Ha fair enough, it has only been two months, hes got another 10 months to go. Competitiona strong within the mercedes, bmw, and audi but this type of competition makes us Even Stronger in the premium world and nearly 80 of the premium business is done by the german industry. When a customer comes to the dealership, what would he recognize with audi . Audi is the most progressive and i think we have the best the most emotional product with the highest type of quality we can offer to the customer. The customers tell us that we are the number one, not we who are telling the public. Let me ask you about Pricing Power in china where you have done well versus the united states. Audi ise moment, premium brand number one when it comes to volume in europe. It is premium brand number one in china for many years. Of course, we are aiming the next pattern of growth in the united states. The future ofe audi in the united states, there is a big Growth Potential for us. The brand is now in a good position. We bring at of lot of my emotional products to the united states. We believe really that we can grow further. The surname of the companys founder and august porsche means listen in german and when you translate it into latin, audi. The founder of another company is on a mission, softbank wants to whip american telecoms into shape in his interview with charlie rose is coming up next. The grand plan of the head of like barry he is japans richest man and number 46 on the billionaires list and founder of softbank. He has stakes in more than 1000 Companies Including yahoo japan and ali baba and he is bringing his message to washington this week and shared his vision with charlie rose last night. Mobile , the internet highway is the most important infrastructure for the 21st century. To me, it is so clear than any other infrastructure for the 21st century. However, u. S. Is number 15 in the world when someone did the survey out of 16. In terms of what measurement . In terms of speed. The only company the usb was the philippines. Yes. They did not beat south korea or japan . No, many other countries beat the u. S. Situationod enough for the 21st century, the most important infrastructure and the u. S. Is lagging behind . The u. S. Has been number one for infrastructure for almost everything in the 20th, the intt century mobile, electricity, automobile, electricity, television, almost everything. Softbank what sprint for nearly 22 billion last year now masa wants to buy t mobile. That would combine the third and fourth carriers to take on one and two. They are happy with where they are. And make a ton of money free clash flow Free Cash Flow back to the shareholders. They are very comfortable where they are which i dont blame. If i were in their shoes, i would be happy. Because they are in such a happy position without facing a real competition from a Strong Enough challenger, they can relax. You bought rent, a carrier and now you want to buy t mobile. If we could but we have not agreed. Not yet. What are your chances . I dont know, we have to give it a shot. Is it money or Something Else . Well, im not here to talk about any details of that situation. Why not . We would like to make the deal happen but there are steps and details we have to work out. Yes, namely regulation. Some u. S. Regulators think shrinking the number of National Wireless carriers to three might hurt competition. Thats why he is in washington meeting with regulators and lawmakers and Business Leaders to make the case that less is more. I need to become a heavyweight fighter. This is a heavyweight fight. That will not work. They will squish you. Be more, and there will of us so they can stay profitable and big and fat so i want them to fight back so they become muscle instead of fat. That is good for the united states. Masa has had success growing softbank in japan. He bought vodafone in 2006 on a face to larger rivals and had 15 of the market by the end of february, up to talk to five percent. Softbank has tapped hollywood for a helping hand to promote the brand. Japanese. That was awesome. Jones if i were at t and verizon, i might be worried. What is more important to me as the information revolution. That is more important to create a new lifestyle. Informationp bring revolution to mankind, i dont have to do everything. I can bring everybody elses talent. I can bring the infrastructure. You bring the roadway they use. Yes, i dont have to create honda, i canr create a highway for all the beautiful automobiles. I can create a tollgate. Ecosystemte an entire for the automobile revolution. That is what i am trying to do. I am bringing information. Devices, anternet highway itself as infrastructure is not good enough. That is a big problem. Himou can hear more from including how he lost 70 bubble andthe dotcom now he recovered it tonight at 8 00 on charlie rose right here on Bloomberg Television. Edward snowden speaks and his message is not to the feds but to tech companies. We havethe details coming up next. Bloomberg television is on the markets. We have had some fluctuations in the market. The s p 500 rose to a record on a closing basis but since then, it has pulled back. We keep testing that level and coming back down again. We want to update you on the joseph ao stocks bank and mens wearhouse the deal is finally done with mens wearhouse buying in smaller rival for 65 per share. [siren] that is a wailing siren marking the moment the earthquake and tsunami hit three years ago in japan, more than 18,000 people were killed. And that ceremony was one of many around the country to mark the anniversary in tokyo. The Prime Minister let a silent prayer service. He was joined by the services of japans emperor and his wife. In caracas, venezuela, small groups of protesters kept up the battle with police as demonstrators threw objects and police fired tear gas. Street clashes have been a daily incurrence over the last three weeks and 21 people it died so far. On the disputed area of crimea, proukrainian rally outside harlem and comes as lawmakers approve a plan to declare crimea an independent state if the residents vote to split from ukraine and the vote is scheduled for this sunday. Few thingsden has a to say about internet security. He spokevia video chat from moscow to an audience of 3000 gathered at sxsw which was rerouted through seven different proxy servers hence the screen freezes and poor audio. [indiscernible] you should only collect the data and hold it for as long as necessary for the option for the operation to be useful. [indiscernible] you should do this in a responsible way. The Principal Technology officer from the American Civil Liberties union spoke with the bloomberg west team on what consumers can do to make sure the services they are using are protected. I think the rule of thumb for people at home really should be how much am i paying for the services i am using. If the web browser you get is free, if the mobile offering operating system is free and after getting our free, think about how the company to make them are paying their developers. Theres no such thing as a free lunch. Services andwant want their privacy first, they will have to start paying for them because otherwise, these companies will modify their data and collect information and hold onto it for as long as they can and use it in a way that is not aligned with the best interest of the people whose information is being collected. Snap chat has thrived off a market like that. It was born off the idea you could send a picture and it would not be permanent. That may not be perfect that is why snap chat had become so popular. That is the one thing that has made snap chat become a global phenomenon. Is it secure . If i look at a picture on snap chat, i could still have another image, i could take a picture with another phone. And you could do a screenshot but that sends a message. They make it difficult to do that so it is not absolutely secure but its the perception that will not be permanent. Google has said we will not hold your data forever. Snowdenwhat thing that was saying today that company should be able to hold your data but no longer than is necessary. That was a critical point he made today. He does not think data should not be held just not longer than necessary. Microsoft is out with a new game aimed at boosting sales of the xbox1 and matt miller takes it for a test drive. We will hear from the ceo of usc about his quest for global domination. Barry bonds is back in spring Training Camp for it is a roving instructor at the San Francisco giants Training Camp in florida. Its the first time he has put on a uniform since his final game in 2007. Back then, he hit 28 homers bricking the hank aaron record but he never received another offer to play. This is lunch money, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com. Beats music, the subscription toeaming service raised up 100 million in a second round of financing. Cristina alesci talks about where the money came from. It came from rich people. You have a billionaire with access industries. Youve got markrowan, cofounder of apollo and probably not as wellknown investors but very wealthy people. Beatey believe they can others because because of this Premium Service . They think they are cooler. These are the same people that brought us the really cool headphones that everybody walks around with. Have a bunch of music executives that are running this company. These are the people that make this product cool. They are brands themselves. Exactly, to their credit, they have built up a very strong catalog of songs, 20 million are rolling out more and more services. At the end of the day, analysts say you need between five and 10 million subscribers to make a streaming music site profitable. We dont have those numbers yet but you would suspect that if and when they come out with those numbers they will try to reach those figures. Combs has been around 200 million for caper channel for cable channel fuse. He plans to convert it into an extension of volt tv. In an interview coming he explained why he started the network in the first place. Music does not have a platform like it used to. Back in the day, it used to be american bandstand and even before that, there was ed sullivan. There was soul train. A place you could go to for music to tell you a story. Themselves find going to dancing with the stars which is not a problem or performing on good morning america. Music is getting concerned at its highest rate ever. The audiences at concerts our at one of the highest rates ever. I saw the opportunity. Said night, microsoft tighten falls hit the stores last night. You have to wear the glasses because i literally have been awake all night. I sort of naps for an hour playing this game. Those glasses are part of the game, arent they . No. Oh. I went to gamestop at midnight and waited in line for a long time in yonkers. Thats not the metropolitan hub of new york. It was packed and there were cars backed out of the parking lot. After 45 minutes, i went to best buy instead and it was empty and i walked in and picked up this game along with a number of other contraptions that go with it. It is such a good game that around 6 30 a. M. , i gave serious thought to quitting my job and staying home and playing until i was hospitalized. A lot of people i think well do that. A lot of guys do that. The effects on the Global Economy of a game like this are probably a mes. There are gamers out there who make lots of money just playing video games. Havelot of gamers really Health Problems because you lose track of time and forget to hydrate and forget to eat and then you eventually pass out when your mom range at your grandmothers. That literally happened to a kid in ohio at happens to people all the time. This game i want to point out, its the most important game for microsoft. Came the original halo out in 2001. From fighting robots to fighting humans, the ceo and cofounder of the wildly successful ultimate fighting will tellsp, ufc, about his plans for global domination. We will hear from the new commissioner of the big east conference coming up. This is lunch money, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com. Theappening in sports free agents for football can sign up for the next season. Some of the players stand to benefit from a. 1 increased salary cap this year and teams can now carry a total payroll of 133 million. Start practicing, kids. In college sports, the big east commissioner and former wnba talked to pimm fox. Our group came together last part because the opportunity to enter into a longterm agreement with fox sports presented itself. It insured for this group a revenue stream that was very important to their future. It was perfect timing, fox was looking to launch a new National Sports cable channel and fox sports launched in 90 million homes back in august. Our grupo schools wereour grupog to come together as a new league. The timing could not have been get our group of schools were looking to come together as a new league and the timing could not have been better. It provides for a white cover to big east sporting schools were looking to come together as a new league and the timing could not have been better. It provides for a white cover to big east sporting events, mostly mens basketball but womens and other sports as well. Fox is going to be televising many of our conference championship events. ,not just basketball but other sports they are promoting our conference heavily and other programming. They have been a terrific partner. You follow the money a little bit and you know that one of the controversies recently has been whether College Athletes should be paid. I want to get your reaction to that. Its a very complicated answer. There are some and implications. Its good that you have a law degree. The legal implications, there are title ix issues, practical issues, there are state law issues in some cases. Foreneral view is that nonrevenueproducing sports which is most of college athletics, sports like Womens Basketball at i played on or field hockey or track and field dont reduce revenue. The athletes and those ports are basely getting their education paid for in some cases completely. It would not have happened any other way. Family it easier for my for me to get that full scholarship at uva. For those ports, its difficult to make the connection to being as salaried employee and having that opportunity. For other sports which produce revenue, i think it requires more thought about how those pieces fit together. Many smart folks are at work now trying to figure out how student athletes can get a better range of benefits than they are getting now in part because of the tremendous revenues in fusing into the system. Is fighting more your speed . Mixed martial arts, tell us more. They punch these guys and go flying. Ultimate fighting its not for the faint hearted. Eeing, punching, kicking and grappling are above board. It is a seriously violent sport that is becoming seriously popular. Ufc is one of the fastestgrowing and most lucrative draws in entertainment. The Las Vegas Company is hosting 49 events this year. In fights are broadcast around 150 countries and territories to nearly one billion homes. He hits about as hard as anybody on the planet. America is the biggest market but brazil is where the growth is. In this football match country, ufc is now the number two sport. It draws in as many as 40 million tv viewers per event. This is a gunfight. Ultimate fighting founders hope it will challenge football position as the worlds global sport. This remains to be seen. How can investors take advantage of th ufc global growth. We asked theufc ceo. The way you look at it is we are the league. It is not just one specific team. We are the leak so think about the value of the premier league or the value of the nfl, all the teams combined. That is what we are striving for. The ability to Scale International growth and International Media rights we are just at the very beginning of being able to exploit and generate revenue for this product. We think we have a tremendous amount of room for growth. How investors can participate in that we are a privately held company held by me and my brother but there are other ways. We are getting ready to launch a game with Electronic Arts emma the first game that will launch at the beginning of the summer. Companies we are associated with that investors can why not an ipo . The great thing about this business is we dont need capital to grow it. Typically, i have run a Public Company before and when you raise Equity Capital its because you are funding growth. Where this position generates a lot of Free Cash Flow and therefore we dont really have a lot of Capital Investment we need. We like to stay private for now. Hows this for competition . Man versus machine, todays mystery meat. It is 56 pass the error which means Bloomberg Television is on the markets. We are about halfway through the trading session. We were earlier up and now we are down but not by much. Essentially, you have fluctuations at the s p 500 hit a high on a closing basis, a record. Investors have a lot to weigh with data on the economy and whats going on in ukraine among other things. That is that we see a slight drop in stocks today. Lets take a look at the treasury market. Treasuries earlier were down. Now we have prices that look like they are higher but that yields are falling, 2. 77 . For the 10year note. We have auctions of 30 billion worth of threeyear securities which is the first of three sales of notes and bonds this week. That is what we are looking at in the bond market. Lets look at the currency market as well. We have the yen gaining versus its major peers. The dollar has gone little changed. We have a drop in commodities and the drop as people look at relative safety in these markets. Lets look at what is going on in commodities. Is seeing a drop. Before we had seen some gains but now that has reversed in todays session. That is near a threeweek low. Forecasts are for supplies to rise with speculation that crude stockpiles expanded in the u. S. Brent crude is stable in london so we are looking at more what is going on with wti. Lets look at gold prices. People are looking for what they perceive to be safety. They are buying the yen because of that and it looks like gold is getting a little out of the bumper that reason. People continue to watch what is going on in ukraine and trying to game that situation and figure out if it will worsen, making their bets based on that. Lets take a look at fuel cell energy. This is a stock that has been volatile in recent days with these socalled clean battery makers. Is spurring the latest rally and its a big one. The company came out with earnings that beat estimates. We have seen fuel cell and Companies Like log power rally in recent like plug power rally in recent days. A big deal is happening in the apparel business it has been going on for five months mens wearhouse and joseph a bank up in bidding for each other at various times and the deal is finally getting done. Joseph a bank will sell itself to mens wearhouse the final price is 65 per share in cash. As a result, mens wearhouse said we will raise our offer price if joseph a bank terminates its agreement to buy eddie bauer. It has done so so thats how they got to that 65 per share price on the board has agreed to the terms which is interesting because there is a lot of animosity between the two companies. That hopefully will come to a conclusion as the two combined. Are rising soocks looks like there are some relief this deal is finally getting done. We will be on the markets again in 30 minutes, coke bloomberg west is next. Live from pier three in San Francisco, welcome to bloomberg west. I am emily chang. New controller of sprint says he will start a massive price war if regulators let him by tmobile. By buy tmobile. Big game relief, titan fall goes on sale for xbox o