To film the amazing movie gravity. The familyfendi, grown the 90 yearold fashion brand. We are going to kick off with what everyone is talking about today, a special day for the Wonderful World of microblogging. We want to help celebrate the birthday of twitter. The site first launched eight years ago today. I am sure you have seen it all over, the Company Turns eight today after going public in november last year, they now have a 28 billion market dollar market cap and over 200 40 million viewers. Not that. Hundreds of millions of viewers continue to flock to twitter every month to experience moments in their lives and moments in the world. If only somebody could come up with a meaningful way to wish twitter a happy birthday. Turkey has blocked access to twitter. President or no one said that they remove tweets related to a government corruption scandal. This comes before crucial elections in turkey. Hethe Prime Minister says will wipe out twitter and digging up by its roots. That is not a very nice way to say happy birthday. Erdogan shutdown down the service after he said they did not follow court orders to hisve content related to investigations. He says it is a week by his political foes and Foreign Forces to undermine him ahead of elections on march 30. Sounds like a real loser. The leader of the Opposition Party is turkeys president agall, and came out against the ban on twitter. He wrote in turkish, one cannot condone the closure of social media platforms and that the ban is unacceptable. Of course he would say that, he is in the Opposition Party. They did call the band a cowardly act of censorship. Remainse minister unapologetic, saying he does not care what the International Community thinks. He has also threatened to Block Facebook and youtube, where users have shared the two aerials including videos and transcripts first leaked on twitter, some of them tied to the corruption investigation, which has cost that we are cabinet ministers their jobs. To think, turkey was once a sure ring jewel of emerging market investment. Turkey signifies what has gone wrong with emerging markets. This was a star performer of the last decade and now you have a leader out there, after been that being in power for more than a decade, run one of the largest current account deficits in the market, and have tacked on a lot of domestic debt over the last five years. Really, turkey has the perfect storm. Not just investors, the public has not been thrilled about it. Go back to last summer when a publics occupied where. A violent addiction led to more protests. 11 people were killed. More than a thousand injured. One of the injured was a teenager struck by a tear gas canister. He never regained consciousness and died last week. That spark even more protests, which brings us to today. Twitter has taken the course, telling users in turkey to tweet via text, instead of through the internet. From turkey to russia, where president putin is getting onto a criticism but also support or natione on crimea, and a , facebook and other tech cheese talk about u. S. Intelligence gathering in washington. All fun and games for Michelle Obama on her first day in china. She tried calligraphy and a visit to a beijing high school. The wife of chinas president showed her how it was done on table tennis. Take a look. [applause] this is lunch money streaming on boomer television, phone, anywhere you can get internet basically. Russia gets bigger, Vladimir Putin formalizes the annexation of crimea today after the signing ceremony. He said i want to congratulate you, all the residents of the country, the citizens of the russian federation, residents of crimea, on this momentous event. Well, it did not go over well in brussels. We strongly condemn the referendum in crimea. We will not recognize the annexation, nor will we recognize it in the future. There is no place for the use of force and coercion to change borders on the european continent in the 21st century. That was the president of the European Union in brussels, with the leaders of all european countries, including ukraine. Of course, no concern for throwing out the in the chronically elected president a few weeks before. The eu is strengthening its bond with ukraine and its new president in a deal allotting the two more closely. His is the deal that the people wanted all along, but then president Viktor Yanukovych had opted for a deal to russia. Then he was violently expelled. Here we are today. This is the historic day from my country and we believe this is the historic day for the entire europe. We want to be a part of big european family. This is the first tremendous step in order to achieve for ukraine its ultimate goal as a fullfledged membership. My country faces a number of challenges come on both economic, political, and military. Finding these treaties signing these treaties, we will show to the world that we are together, that ukraine shares european values, and we can be successful together. The eu is not stopping. The leaders have backed additional sanctions on russian leaders levied by the u. S. Yesterday. We are imposing sanctions on more senior officials of the russian government. In addition, we are today sanctioning a number of other individuals with substantial resources and influence who provide Material Support to the russian leadership, as well as a bank that provides Material Support to these individuals. There has been a lot of comparisons to the return of the cold war between the u. S. And russia, the chilly relations are familiar to those of us old enough to remember, but even president obama did not see this coming. I am glad you recognize al qaeda is a threat because a few months ago when you were asked what is the biggest geopolitical threat facing america, you said russia, not al qaeda. The 1980s are now calling back for their Foreign Policy because the cold war has been over for 20 years. That cannot be comfortable for the president to watch again, but lets look at the facts. It has a powerful military and is boosting defense spending, doubled since 2007, but that is still dwarfed by the 582 million 582 billion that the u. S. Spent. Russia is barely in the top 10, even with its 11 Million Barrels a day of oil production. And the russian economy was slowing even before this crisis. Now there is a risk the real stagnation for the russian economy, and the geopolitical stakes are also different. The u. S. May think putin was wrong to move into crimea, but he did it because he feels threatened. He does not want to dominate the world but he sees nato expansion on his doorstep, a growing European Union. He is acting out of fear here, imagined or real. Even if he wanted to build the old empire, it will not happen with the economy. Here is another take from the head of the council of foreign relations. The cold war cannot restart. It is not a good analogy. Rush is not the soviet union, it does not have global reach. Is not a question of yes. It is a country of 140 3 million people. Its military can only have an impact in limited space. Its one principal lever is energy, and we can offset that, if we open up american exports of oil and gas. I do not find the cold war to be helpful. That said, what russia is doing is destabilizing and we ought to figure out ways of meeting it along the lines of what we are doing with economic sanctions. While he do that, Vladimir Putin will take over small countries on his doorstep. What about the bigger picture, what does this say about the future of russia . Russia intimidation and infiltration, soldiers wearing irregular uniforms. The choice they were given was extraordinarily narrow. There was no provocation. It is not as if you had systematic repression of the russian People Living in crimea. If there had been such a case, and if people had taken illegally through public lyrical channels, the world may have agreed at some point to some form of crimean separatism or autonomy, or what have you. His was not the case. His was mr. Putin acting in retaliation, if you will, for what happened in kiev, to buttress his own political position at home, but nobody should kid themselves. This is not about political selfdetermination or anything else. Would you support the expulsion of the democratically elected government in gf kiev that happened a few weeks before, along with a murder that was committed to achieve that . You had a situation where the Prime Minister was ousted. That was simply a fact, whether we supported it or not. It is unfortunate that things got to that point. All you can do in those situations is get our legitimate political process back on track. As long as it serves our interests. Coming up, we go to another part of the world, china. Dreamworks is opening up a 2. 5 billion complex. We will hear from the ceo, jeffrey katzenberg. And barclays missing out on hundreds of millions of dollars. We would tell you why it is a serious grudge. Onthis is lunch money Bloomberg Television. I am matt miller in for adam johnson on this friday. Barclays is missing out on hundreds of millions of dollars from alibabas ipo deal. It looks like the Investment Bank simply backed the wrong billionaire. Jeff mccracken, our managing editor, explains. Not a dispute last year but a contest, if you will, to get sprint. A result, they angered softbank is one of the large holders in ali baba. He has exerted pressure and have cap barclays away from the ipo. This is the largest since facebook, and could even be bigger. It kind of depends on your perspective. The way berkeley sees it, they were blocked out completely by him. The problem here is not only have you alienated softbank, you have probably alienated alibaba. It is a chance that softbank and sprint together could do the deal with tmobile that we have been discussing for so long. That is another situation they will likely be locked out of. Hollywood film studios, Dreamworks Animation, pushing into mainland china. Pricking grand on a 2. 5 billion entertainment and movie complex in shanghai. It will have 400 nanometers working by the end of next year animators working there by the end of next year. We caught up with Jeff Katzenberg at the launch. Here because we think there is an opportunity to build a worldclass animation studio. We are making movies here in china for china, for export to the rest of the world. In order for it to be export, it needs to be of the highest quality. Than a within less handful of years, going to be the number one movie market in the world. We think it is a great center for us to attract great artists here in china. We think it can be a worldclass competitive studio. I have spoken to some beijing 3d conversion houses pitching to hollywood studios. They say they could do the job for about 1 10 of what hollywood can do. Are you seeing that . Ours is a very unique, a very highend type of artist. It takes a tremendous amount of training, many years. The sophistication and knowledge in order to be able to animate using stateoftheart tools that we have, there is nothing inexpensive about it. Cost not really a big differential between here and there. What kind of revenue can you generate in the next 5, 10 years, as you roll it out . Total investment of 3 billion. This is a very large real estate development, much more than an animation studio. It is a huge development. Stateoftheart, theatrical theaters, movie theaters, one of the great imax screens, restaurant, retail. As is obviously a very big investment, a real estate investment. I think it will have very promising returns. Very different from the animation business. Any kind of revenue guideline . Success. Speaking of, your former employer, the Magic Kingdom come is building something on the other side of the river, disneyland. How much of this is in response to what they are doing . There is nobody that does what disney does. They are in a class by themselves. That is that park has been 17 years in the design and building. I am sure it will be spectacular , but that is a gated attraction, very different, for the Family Business. This is really like broadway is for new york or the west end is for london. If anything, they are complementary to one another, they do not compete. Talking withu government officials about loosening up the creative restrictions here and censorship . I see some signs of loosening up , maybe decentralizing to the regional levels. We saw the China Film Group had had step down. What are you seeing as a titan in the industry . We have had an amazing experience, we have been bringing films to china for over a decade. 34 films a year. We have had all of our films here, as well as peabody. We have never been asked to change a single frame of a single movie, ever. The issue of censorship on at least four Dreamworks Animation is a nonissue. For more on where Entertainment Companies are looking to go next and why, lets hear from deals reporter cristina alesci. They are all into original content and programming but they have to look elsewhere. A good example of this is disney. Reports it is looking at buying a Youtube Content creator which would be a very forward thinking deal, and that is maker studios. The real trailblazer here is dreamworks. Last year, they bought a youtube tv, whichwesomeness targets teenagers. There are smaller deals, but very sexy and important for these larger cable networks. Another part of the immediate industry heating of is the local broadcast tv. This morning there was a deal announced between media general and the lynn media, 2. 6 billion dollars. This has to do with the fact that local broadcasters want more leverage with the content distributors or retransmission fees. More leverage with advertisers. You will see more in this space. Zuckerbergp, mark joins a whole bunch of other techies at the white house for what is likely to be a tense meeting on Government Data collection. The nsa is spying on all of us, but that is no surprise. We will tell you more when we come back. And a big design blowout on lunch money. From robots to weightlessness, we have you covered for the final installation. It is 26 minutes past the hour and that means it is time for on the markets. Another record for the s p 500. Up half a percent, the dow rising. 6 . Not any big catalysts today, just a continuation of yesterdays rally. Take a look at individual stocks. Risa and mastercard are two we are watching. Going in opposite directions. Earlier we saw both rising after a federal Appeals Court upheld a rule that banks could charge up to . 21 to process debit card transactions. Thatlers had been arguing the dodd frank law entitled them to a lower rate cap. Mastercard is now off. Back on the markets in 30 minutes. Money. Me to lunch i matt miller in for adam johnson. Todays moving picture, where the video is the story. The world cup is 83 days away but the violence is escalating in the slums of rio de janeiro. This attack on a police post got to be the work of a drug gang. Police in rio set up the post in the city slums to combat violence ahead of the world cup coming instead they have been frequently attacked. Crews from australia and new zealand began again came up empty in the search for debris link to the missing Malaysian Airlines jet. The search is focused on part of the indian ocean in the. Outhwest of perth, australia planes from china and japan will arrive over the weekend to join the effort. Hundreds gathered to dance and Welcome Spring near mexico city. The ancient site is home of the pyramid dedicated to the sun and moon. Dancers and tourists were dressed in red and white, color is believed to better absorb the good energy of the spring equinox. President Obama Meeting with tech ceos today to continue a dialogue on privacy, technology, and intelligence. An ongoing source of tension between Silicon Valley and washington. Here is what eric schmidt of google had to say about the nsa earlier this month. They didid not knock, not call, they did not send a letter. They just visited. [laughter] Mark Zuckerberg is also taking part in the meeting today. Data collection is a big concern for the facebook ceo. Last week he posted here is what paypal cofounder and facebook investor peter teel had to say about the data collection. He spoke with hans nichols at the tech summit in berlin this week. They probably undermine trust in certain government is to shins. I do not think it would be hard to admit undermining trust in the internet in general. I have not seen any data that is just that people are buying less from when the snowden revelations came out. What about the balkanization of data . There is a lot about cloud in germany. These thingss that have not yet happened. I think people are disturbed about the intrusiveness across the board. Is, myzy thing about it sense is we are not dealing with a big brother type state. It was not like the nsa really knew everything that was massively intrusive. Massivelybably incompetent. Just a bureaucracy on autopilot that simply collected all the data in the world because it could. I do not think it did much with it. That is probably the other shocking story. There is a civil libertarian critique of the nsa that it was too intrusive. There is a technocratic critique, which i have, that it was just incompetent. If you had a competent security agency, it would be able to figure out that there is a very small amount of data that you need to get, so it is a sign of extraordinary incompetent to say that you need everything. Why cant the state be both, incompetent and big brother . What is the outlook for an agreement between the tech world and the nsa, and who will come out on top . The wiki can wikipedia cofounder is confident it will not be the government. Technology is already in place, Awareness Among companies. They need to move to the better technologies. That is also in place. It is a matter of time. I do not think ultimately the nsa will win in this fight. From one kind of text to another, how do you make gravity look weightless . The answer is next. And the james bond cars. The iconic a tour of collection, the biggest ever on show in luxury. Last week we hosted a Design Conference in San Francisco and all week we have been highlighting the best of that conference. Here is the director of product strategy for bot and dolly, a studio that specializes in robotics and filmmaking. Design . Is i do not know if i will take a pass at answering that. Design is not a discipline to me, it is an approach, a methodology. The power of Design Thinking can be applied in all sorts of areas we do not traditionally think of. A Creative Design studio and an engineering and robotics studio. What we do here is the result of a unique culture where we intertwine the artist and engineer. It becomes a powerful thing to generate innovative, Creative Experience ideas that the world has never seen before. We have done a lot of commercial work, a lot of work in films. We were involved in filming gravity. Our robots were responsible for the motion onset which led to some innovative photography approaches. We build a lot of things here. Sixaxes manufacturing robots that we are constantly asking to do things that they were never designed to do. Working in a place like this is inherently challenging because the focus of your job is to imagine things that are not really possible, and then find ways to bring them into reality. That was pretty awesome. The frame store senior producer also worked on gravity. Here he is. Howard. Me is charles i was the visual effects producer on gravity. Animators usually spend their lives animating creatures and objects that are affected by gravity. We brought in and physics lecturers to bring in this new weightless world. Although it was a technical issue, we had to allow the flexibility of Human Performance , which was so important to the movie. It was a real journey, about four years in the making. When we started making the film, there were lots of people saying it could not be done, so lots of things to figure out. It was a little bit scary in places. Entirelyfilm that was in low orbit gravity, i do not think has been done before, convincingly, so that was one of the biggest challenges. That led us to create most of the film in a computer. We had to develop lots of new technology, not just to shoot the film, but to get the visual effects. My greatest a compliment was probably delivering it. Erector,recise wonderful to work with him, but actually delivering a project was quite something, i think, for a visual effects producer. I have worked all my professional life, 14 years. That is one of my strengths. I know everyone there. When we started making gravity, although there were many people saying it could not be done, i knew we had the right people to figure out how to do it, the right crew to figure out how to build a Space Shuttle do it in that respect, it was a big help. If you have not seen the movie, i highly recommend it. This issue of Bloomberg Businessweek is the design issue, also completely awesome, full of stories like that. I think he just hit the stands today, so pick it up. It is the quintessential italian fashion brand, fendi. We get a look inside the Family Business that has made its mark on runways around the world. Stay with us. And they have made their mark. James bonds iconic cars in display on display in london, the biggest display of bond cars ever. We will give you a sneak peek, coming up next in the luxury. In luxury, bond cars, handbags, and fine art. Lets start with art. Now you can find it alongside books and toilet paper on amazon. Year, are launched last selling everything from 25 prince to have a milliondollar oil paintings. How one brickandmortar galleries compete . It is great that amazon is coming into this space and opening up to more people, but what i have seen, they seem to be focusing on a category of art that is more functional, are that you want because you have space over your couch, as opposed to something more aspirational, something you buy because of the brand. This is really important. Gary hume, could he get started today, the iconic british printmaker, could he get started today without your Dealer Network . It is hard to ignore the number of people today that for further convenience come in a 24 7 access in their home, or on their apps. Allen has an interesting start up company that is teaming up with saatchi and skipping the middleman so that artists can sell directly. How do you think your site with compete . Art, affiliated with philip saatchi, one of the greatest electors in the world, started his company a couple years ago. We recently expanded. It can now connect 100,000 artists around the world. It is really dealing onetoone, like airbnb. Someone who has a piece of art that wants to sell it. You can hear more in the spring issue of bloomberg pursuits, our luxury dedicated vehicle. Here is what you cannot buy at amazon art. Cars that have made us jealous from james bond films throughout the year. Check them out. It is not an easy life for a bond car. Shot, rammed, driven off clips. The series has managed to make the cars almost as famous as the actors that drive them. Here in london still museum, they have collected the alist. Villainess jags, show and one heavily damaged aston martin, minus the door. The value of the items runs in the millions. The aston from goldfinger sold for 4 million in 2010. The museum cio has his favorite. The submersible lotus from the spy who loved me. For people in my generation, it was so iconic, a car that drives into the ocean. Suddenly the wheel disappearing and the fins coming out. It was a defining moment in cinema. Pioneeredd series auto placement in movies starting with 1974s the man with the golden gun. 2000 two, ford paid 35 million or the aston martin to reappear. Producers say the tie up between Product Placement and the bond series has kept the franchise alive, having grossed over 6 billion so far in a successful romance. Now to the fashion brand fendi. It has been around for over 90 years. A Company Began as a for an leather shop before making its mark as an International Fashion icon. Francine lacqua takes us inside fendi. 1925, two italians opened up a fur and leather shop in rome. The mantle passed to their five daughters and it is there that these fendi story really begins. Under their watch, the company grew into multinational luxury brand, although they had some help from this man, karl lagerfeld. Designer, he young joined fendi, stripping the lining of its iconic birds, and slimming them done with innovative techniques. His collaboration with the Company Continues to this day. To createk a fendi the brands most successful product, created in 1977, and bought by the millions, the baguette bag. Four years later, the biggest change at fendi in its history. French luxury powerhouse lvmh bought a 90 stake in the company. Sylvia fendi is still created director of accessories. And with a Younger Generation in the ranks, the company is still very much a Family Affair and its heritage strong. Wonder if a man would jump in fendi . We are coming up on 56 past the hour, which means Bloomberg Television is on the market. Im julie hyman. Halfway through the trading session, we are losing some steam. The s p 500 touching a record. It ended our still higher, the nasdaq down by nine points. You may notice volatility today. If you look at intraday chart of the s p 500, you can see up and down. It is a day of socalled witching, the expiration of certain options and futures contracts which tends to cause volatility, especially at the open and close. In terms of the broader macro picture, the markets seem to have shrugged off those comments from fed chair yellen this week or she said the fed is likely to raise Interest Rates sooner in some investors expected. This morning on market makers, tom keene and alix steel asked what he thinks about what the fed had been doing to prop up the economy. The fed has provided a backstop. Posted 2008, they saw how disastrous things could get in Financial Markets and they acted. They have acted in a strong and direct manner and it has done a wonder for our economy, and i think, in driving other Central Banks to think similarly. The Balance Sheet expansion that has taken place, not just at the fed, but all the Central Banks, has worked well. Positive assessment for the fed, cfour janet yellen. Harshest review i read. Why so harsh . These are always difficult at the beginning. Were pretty harsh on that at the beginning. I certainly was. He made a lot of communication mishaps when he first started, which should not surprise us. The first time in the seat you make a couple of mishaps, but that does not mean that you give someone there just to grade. At the end of the day, she did mislead us a little. She talked about this being an unchanged statement, an unchanged press conference, and there were a lot of changes. Said, we areve more optimistic. I would have been ok. To tell us things are unchanged and then the rate structure moves up the market was a little taken aback by the idea that a considerable period of time would be six months. Its months was certainly at the lower end of anyones range. That brings up an important distinction between the fed overall being more hawkish, but janet yellen still being dovish. What kind of the mintz has she had to make being the chair . Cynics would say that she gave us a lot of dovish water when she was in the battle to get the job. Now she is in the seat, she will act more like a traditional central banker and be a little more hawkish. I find that argument suspect. I think she is still quite dovish. David,may have noticed no haters. Maybe that is his firmest stance. If you look at the treasury market, if you look at what he was talking about with the federal reserve, yields are coming down. We saw a drop in yields for the as you saw a gain in the yield overall, i should say. The longer term view is that the yields will continue to move higher as we have the fed eventually raising rates. Take a look at the dollar. We have seen some interesting action there this week. A threeday gain as investors have been waiting outlook. For the week, still seeing a big game. That is it for on the markets. We will have more in 30 minutes. Up next is bloomberg west. Live from pier three in 10th at cisco, welcome to bloomberg west. Im emily chang. Tech ceos are in washington today to meet with president obama about nsa surveillance. He is the former cto of facebook. He will be joining us to talk about his latest project and his view on the future of facebook. A check on your Bloomberg Top tech headlines. Turkey has lost access to twitter. The move coming just hours after