Starting with crimea. The Parliament Just voted to secede from ukraine and join russia. There will be a referendum on the 16, in 10 days time. The fight over crimea enters a new phase. 60 of that population speaks russian. Russian president Vladimir Putin sent troops in to protect that population. Prorussian gunmen have occupied crimeas general assembly. It will not be a surprise if crimeans vote yes. Ukraines new Prime Minister is not getting up. Mr. Putin, tear down this wall of intimidation and nuclear aggression. Lets build a new relations between ukraine and russia. We are not ready to surrender. And to be the subordinate of russia. Shout out to Ronald Reagan from Arseniy Yatsenyuk in brussels for an emergency meeting of eu leaders. The eu is split over how to impose sanctions against russia. Eastern eu states are taking a hardline, western members want to give russia more time to pull back forces in crimea. Here is David Cameron of the u. K. We have got to get russia and ukraine talking to each other. We have got to demonstrate here in the European Union we will help the ukrainian people in their hour of need. Just as vital, we need to send a clear message to the russian government that what has happened is on acceptable and should have consequences. And further action would be even more unacceptable and require even more consequences. Mr. Cameron talking tough on russia. There is a question many people are asking. Why do these countries care so much about tiny ukraine . Here is the Prime Ministers answer. This matters to britain because we benefit from a world in which countries of they the rules. We benefit when we enable people like those in ukraine to be able to choose their own future. That, and money. The eu accounts for 75 of Foreign Direct Investment into russia. And russia provides 33 of the eus petroleum. They need each other. France needs russia, too. This is a worship made by france for russia. It is designed to strengthen russias ability to deploy troops. The ship as part of a 1. 6 billion deal that marked the biggest ever sale of nato weaponry to moscow. France says it has no plans to scrap the deal even though it is criticized russias military push into crimea. Here is the french president francois hollande. There will be the maximum pressure on russia for deescalation. There is a possibility of sanctions. Not looking to raise tensions but to open a path for dialogue. That is what we did in paris yesterday. Now we need pressure from europe to increase tension and allow ukraine to decide their destiny. Friends resident francois hollande. The eus threat of sanctions has not been working on russia. Russias force has not worked on ukraine or the u. S. Nobel peace laureate Henry Kissinger says they are going about it all wrong. In the washington post, he wrote the ukrainian issue is posed as a showdown. Whether ukraine joins the east or the west. Ukraine must not be either side, it should function as a bridge. He spoke to charlie rose last night about russias moves. Russia is no longer very strong. No longer in a position to threaten its neighboring countries. He is conducting a policy in which he is both authoritative and defensive at the same time. No russian i have ever met has found it easy or possible to consider ukraine a separate country. It was part of russia for 300 years. The history of ukraine and russia have been intertwined for several hundred years before that. The evolution of ukraine is a matter that moves. Watch the full interview of Henry Kissinger tonight on charlie rose at 8 00 and 10 00 p. M. Eastern. President obama not taking his foot off the gas. He ordered assets frozen and u. S. Visas blocked for people engaged in corruption in ukraine. Stay tuned. Israels Prime Minister doing some the policy. Bibi bonds with Silicon Valley. Eric schmidt of google ids the four horsemen of technology. That is also coming up next. This is lunch money, streaming live on bloomberg. Com, your tablet, and your smartphone. In tech, the Silicon Valley connection. Israel is home to a tech startup scene and linking up with california. Benjamin netanyahu signed a business cooperation deal with jerry brown yesterday. They agreed to help each other in cyber security, clean energy, and water conservation. We are in the midst of a drought. It brings home how important it is to manage our water efficiently and wisely. Israel has no water problems because we are the number one recycler of wastewater in the world, close to 90 of our water. We have drip irrigation and we prevent leakage and pipes. We have desalinization. We do not have a water problem. California does not need to have a water problem. I think we can overcome this. Israel and Silicon Valley have close ties. The Israeli Chamber of commerce is partnered with facebook, oracle, microsoft. More than 150 israeli startups have operations in the valley. Cory johnson sat down with mr. Netanyahu to talk about this. I would like to get all the venture capitalists to come to israel and see how they can find soulmates and entrepreneurs to cooperate with them. You do not insulate yourself, you do not cloister yourself in this global world. You open up. Preferably to the smartest brains you can find. That is what we have in israel. There are other places like that. California and israel are two of the greatest hubs of technology innovation. Lets make our work even better. We have seen a lot of little Companies Get acquired before they get to any size. Is that good or bad . When you imagine your economic goals for these companies, where do you like them to be . Giant behemoths like google, which we have not seen out of israel . Small googles. That requires marketing reach. You have brilliant people. They develop startups. It used to be that if they sell at 100 million, they were successful. Now they sell at 1 billion. I am not sure there is a chore for that. I am not going to legislate and tell them you cannot do that. It seems to be our lot to keep on producing these mushrooms. After rain. Somebody else picks the mushrooms, that is ok. We might develop a market in which eventually we have big companies. It has happened to several companies. Overall, israel is the laboratory of the world. The laboratory of innovation. During mr. Netanyahus tour, he also met with cofounder of whatsapp, jan koum. At the montgomery summit, eric schmidt spoke with emily chang about the four horsemen of tech. There has always been one dominant network platform. Originally ibm, threatened to be broken up by the government. And then you have microsoft, they were found guilty under appeal. The sentence was revoked. There was agreement as to their tactics. We had two models of this. I always felt, going back 15 years or 20 years, if we had a couple of those that were competitive beyond belief, they would be a better answer from a regulatory perspective as well as from a creativity perspective. We are there now. If you look at amazon, apple, google, facebook, four Different Companies that have huge market caps in terms of scale, reach, cash flow, brand value. We can debate if it is a fit or a sixth, lets talk about those four. They have different ways of dealing with advertising, customer revenue. They are changing the world and establishing platforms with enormous value. When i say platforms, there are large numbers of companies built on top of that. Using amazon, there is a large ecosystem of companies that use amazon for distribution. Apple, we all understand the notion of apple stores in the music industry. Facebook has done very well in the mobile platform. He likes competition. Here is what he had to say about the iphone. More than 1. 1 billion users of android. We activate 1. 5 million a day. Android is a huge pot form success. It is extraordinary. You now have a battle between the iphone and the android phone. That fight is producing enormous cost savings, volume savings. The consumers benefit from the competition. One challenge facing google china. They shifted Google Search from the mainland to china. Here is eric schmidt on the chinese government. Negotiating is difficult. It was my job to do so. It will remain difficult to negotiate with the chinese government. The most likely scenario is that the government will continue to be wary of google. They have the power to block access to services through their great firewall of china. We have tried to convince them that the country will be stronger and in better shape by opening up to twitter, facebook, google, youtube, on and on. They do not agree. Watch more of our discussions with eric schmidt and Benjamin Netanyahu on bloomberg. Com or go to our app. How is this for hightech . Furniture that moves. The company that makes it on the move. This is our series small to big. Where millions of dollars of copper is sitting around. A look inside the cover trade, next. Have you ever wondered how you store metal . Harder than it sounds. Alix steel explains. Deep in the arizona desert, behind this sense, past those guards odds, tv cameras, and motion detectors, a mother load of one of the worlds hottest commodities. How much is this worth . 100,000. I am standing next to 100,000 of copper. Yes. Doug smith is the ex cia operative that protects the copper in this massive and well secured warehouse. Copper medal is used in almost everything in modern society. For telephones, computers, car, pots and pans. It is a most useful metal man has ever discovered. Why is copper a hot item . It is so useful. Copper can be resold anywhere. Copper theft is a big business. Between 2006 and 2012, 15 Million Dollars worth of copper was stolen from an arizona mine. Warehouses almost never let cameras inside. Doug smith agreed to let us have a look around. The metal arrives directly from nearby mines and the copper is held until someone wants it. We use 6000 pound forklifts. We cant load the copper as soon as the vehicle arrives. Smith charges copper producers 8 per ton per month to hold their product. The recession was good, copper sales slowed, leaving smith with a full warehouse and a fat wallet. Times are changing. There will be more of a need for copper. That is good for the economy. It is a little tough on us, we are seeing our copper going from 30,000 tons in may to about 5000 tons now. We are watching money walk out the door. Also essential to the flow of metal . The London Metal Exchange. It is also controversial. Alix explains. The metal is tied to traders. At the London Metal Exchange it is a different story. You order something from amazon and expect to get it into five days. Imagine if it took a year. That is what happened to some buyers like millercoors and anheuserbusch when they try to get aluminum from the London Metal Exchange. Why . The first big reason has to do with inventory. The metal is not always available. Socgen estimates that 80 of that inventory is tied up and financing. You buy it, store it, sell it forward by 12 months and pocket the difference. The other reason is a very gray area of the warehousing business. That has to do with fees. For every day metal is stored, the warehouse makes money. The lme gets a 1 cut, the cme does not. One of the lmes biggest warehouses is in detroit. Detroit owns about 1. 5 million tons of aluminum. The charges about . 48 per ton per day. It is making 720,000 a day. The longer it stays, the more money it makes. Money can be a very powerful motivator. What kind of disadvantage does this create for buyers . Allegedly it wound up raising prices. If we look at premiums, what does a buyer have to pay over the spot price. It has really sort, up 90 since december. The buyers will tell you it left them at a disadvantage. For example, tim weiner is the global risk manager at millercoors, he testified before the senate in july. Here is what he had to say. We are forced to wait over 18 months to take physical delivery or pay the high physical premium to get aluminum today. It has cost millercoors tens of millions of dollars. That might have inflated global Aluminum Prices by 3 billion in 2012. Amazing, watch alix steel inside the copper trade right here on bloomberg television. Here is some metal that moves faster. It might be that bugatti, fastest car in the world. We will put you behind the wheel in motors. Sharpen your pencils. Big changes on the sat. Good for college students, or does the College Board get an f . 26 minutes after the hour, this is lunch money streaming live on bloomberg. Com, your tablet, your smart phone. I am adam johnson. Moving pictures, the video is the story. More details on the woman who drove a van with her three children into the Atlantic Ocean in florida. Police had stopped the vehicle. The driver showed signs of mental illness, not enough to take her into custody. The children were rescued. She is undergoing evaluation. No charges have been filed. Intrigue in north korea, state run television showing kim jongun with the military official considered to be second in command. The first time the man has been seen in weeks. Some believe he is the target of a purge by kim. No word on when this was recorded. San Francisco Jim harbaugh sinking a halfcourt shot. He was giving a pep talk to the university of kansas jayhawks. The jayhawks won their game. That is the exact outfit harbaugh always wears on the sidelines. Khaki, black shirt. Thats a swish. Who says you cannot change and 88yearold tradition . Not the College Board. They have announced an overhaul for the sats. Here are some of the changes the essay is optional. Vocabulary will focus on words commonly used in college. No more penalties for guessing on multiple joints. The goal is to pry open the doors of college education. We spoke with the president of advantage testing on surveillance. The changes have moved in the direction of greater rigor. What we have is evidence based critical reading and writing. That is new, a used to be that the essay required on the test was one where you could essentially make up facts. That is a good move. A little bit deeper into the material. I am loving this. A big gripe is that standardized tests feed coaching and tutoring that your company provides. And gives an advantage to wealthier kids. Longterm, rigorous preparation is something we should ask everyone to engage in. To bolster credentials for admission to colleges and also bolster preparedness. Is getting more rigorous. I am troubled that the essay has dropped. In this 140 character world, we do not have to express ourselves in complete sentences. Why are they dropping the ability to judge whether our Young Students can express themselves clearly . Lets be clear, they are not dropping the essay. The essay is now optional. It is a 50 minute essay instead of a 25 minute essay. Thank you. It is based on text they are giving you on the exam. You have no ability to prepare in advance of their then to assess and analyze arguments. These tests really matter. The tests ought to be regarded in conjunction with your academic record. There are too many as being given out in high schools across the country. You need a standardizing metric. Critics have argued that standardized tests failed to show potential. The feeling of being underestimated is common. We asked big names about their experiences being underestimated. [laughter] boy. This morning. When i was born. I like to be underestimated all the time. George and i say the same thing, it is better to be underestimated. It is really good. There are people that never quite understand what one is capable of doing. People tend to underestimate people every day. I am guilty of doing that as well. I have said many times criticized i have been many times criticized and thought little of. To assume that that was underestimated. It has been a long time since i have been underestimated. I often feel that maybe people overestimate me in some respects. I do not spend a lot of time thinking about what other people think of me. I try to follow my own compass. It was easy to be underestimated. When i took over from my father as ceo, it was easier to walk in a room and they say paul got his job because he is irwins son, this is nepotism. It gave me an advantage. I was underestimated in my career, i was 29 when i became president. My father was the founder of the company. I am a woman. They would be impressed when they had dealings with me. I see it as something that leads people to points of view. I sit in many rooms with people or i start talking, a lightbulb goes on. Oh, shes smart. Gender is still a huge issue in the workplace. Despite the advancements women have made. Bloomberg will Honor International womens day with a special edition of market makers. Erik and stephanie will interview the chief operating officer of walmart as well as the founder and ceo of taskrabbit. Entrepreneurs faced challenges all time. Just ask the founder of this company. From big to bigger. Mercedes cannot make cars fast enough to keep up with demand. The latest high tech model that can drive itself. That is a hot looking car. That is coming up in motors. This is lunch money on bloomberg television. Streaming live on bloomberg. Com, your tablet and smartphone. I am adam johnson. In company, big changes. Staples, the largest u. S. Office of light chain will close 225 stores and cut costs. Online competition from the likes of amazon, if you remember, that was the Reason Office depot merged with officemax. Costco profit misses estimates. The largest u. S. Warehouse club chain had a 15 decline in quarterly profit. Discounts meant to attract Holiday Shoppers cut into sales. For a company that has caught heat for paying low wages, mcdonalds has a generous retirement plan. The chain matches the first 1 employees save in their 401 k accounts by 3 to 1 and then dollar for dollar. We will switch gears and focus on a Small Company part of our small to big series. Small businesses face big challenges. Rock paper robot creates robotic furnishings that push the limits of what furniture can do. Here is the founder, jessica. Scaling up production in a sustainable, creative, and lucrative way. Rock paper robot is a design firm that specializes in innovation and fabrication of kinetic furniture. I love physics. I wanted to inspire wonder. Make new connections. Rock paper robot is in a transition period. We started with personalized products because that is what i was capable of. I would hire the cheapest person, myself, and do it. That is not a Good Business model. I have to pick between the artist half and the entrepreneur half. I could sell a highend piece for 10 times more than i do if i was considered an artist. I could only handle putting out one piece at a time. We have 50 other projects. In order to get to the other pieces i want to be able to do, i have to to have a Sustainable Way to produce this. One of the big challenges for me is to be able to start to delegate what i need to have done to run the business. So that i can veer into a more creative role. I think i am not ceo. I did not want to just have a company. I wanted to make beautiful things. Our latest product, we decided to mass produce it. It slides down from the wall to any length. We started to manufacture overseas and we have 500 preorders for the table. We are about to increase our output by about 1000 times. That is a tremendous amount of growth. Our next small to big, ryan of manhattan with his restaurant. Coming up in motors. The hot wheels coming out of geneva. We have another one, the mercedes that practically drives itself. That is coming up. Gorgeous. This is lunch money, streaming live on bloomberg. Com, your tablet, your smartphone. I am adam johnson. Daimlers bosses said mercedes cannot make enough cars. What does a new sclass look like . Here is Angus Bennett in geneva. This is mercedesbenzs new sclass, they believe it is the future of motoring. Many of its functions can be controlled by your cell phone. It relates opticals and drives autonomously on the freeway. Mercedes design guru says it would drive handsfree if the law allowed it. You have to touch the Steering Wheel every 10 seconds, that is a legislation issue. You can preheat the car from your phone and located in the most confusing carpark. The new sclass Takes Technology from the lab and puts it in the car. Nobody has that control this way. Nobody has the autonomous driving. This has it all. All across, it helps to major having more safe and prevents accidents. It saves lives. The computer predicts corners. Watching the road and controlling your speed. Raising the question how long before the driver becomes obsolete . Angus bennett, bloomberg, geneva motor show. Mercedes is not the only innovator. This carmaker rivaling the worlds fastest car, which is a bugatti. I am the ceo and founder. This car is exciting. The first car with 1 megawatt of power. 1,360 horsepower. No other car can go faster. The problem is to find a venue you need a 10 kilometer straight to see how fast this can go. Then you turn around and go the other direction. There are not many places on the planet to do that. If someone asks how fast it is, it is most likely over 440 kilometers per hour, we are certain of that if we have a long enough straight. It will be the fastest car in the world. We do not really want to focus on marketing that side of the car. It is so unusable to most people. The hyper car is one of the crazy fast cars on the market. Here are some of the others. In todays mystery meat, green tires. Continental using smaller in todays mystery meat, green tires. Continental using smaller amounts of Synthetic Materials and fossil fuels to produce these greener tires. Sorry, matt miller, they are not actually green. They are just green. If you know what i mean. Is approaching 56 past the hour. Lugar market bloomberg is on the market. We are getting details on a merger. Safeway will be bought for worthy dollars a share. We discussed a potential sale of the groceries chain for a while now. There will not be a big job to wear closed today. It has been rising on talks of a potential deal. Year. Ched 21 this it is a higher premium than the february 18 closing in. Best price. It is another additional amount added to that. Albertsons is announcing the merger agreement. Lets talk about where the markets closed out the session closeout the session. It set off ahead of the monthly jobs report. It is following on the heels of the jobless claims read or. Report. They may be trading at new highs despite the conflict in ukraine. There is a look at what that means for the markets. My guest you to trade options on the stock exchange. Hes here with me. Roses rose and the vix also. Does that mean people are nervous . You have the ukraine. That could turn at a moments notice. You look at the float that is going on and what we are seeing in the vix options, we have volatility sellers. We are seeing a lot of call buyers. That would be viewed of buying puts in the s p. You are cementing the s p is well. Traders are focusing on options that will expire tomorrow around 1850 level. Does this have to do with the imminent jobs report . Is targeted to the jobs release. We are hoping that the ukraine situation will go away. Were hoping to see the vix go back down. That is builtin. It is because of the ukraine situation. Is there anything that this would indicate . Can we make the read over from the vix to the s p . I think that given the , theility in vix options mentality in the s p is alive and well. Look at what happened last week. The conversation we were having at that we know ukraine is around, but why is thevix not rallying yet . The s p is not realizing a lot of volatility. You look at how quickly it is rebounding. Onhad a spike in the vix monday. We have been up ever since. Think you so much. We appreciate it. Im julie hyman