are you conservative enough for republicans? many gop voters have their doubts about jeb bush. we put together a focus group in new hampshire. it is high-tech. a luxury watchmaker is joining forces with silicon valley. welcome to "market makers." our stephanie ruhle. >> and i am bill cohen in for erik schatzker. it is march madness. stephanie: it is and we will discuss it over the next couple of hours along with bill's beard. we have some breaking economic news. the leading economic indicator scarlet fu is in the newsroom. our viewers want to not hear about bills beard so much. scarlet: business outlook survey is a disappointing read. the index came in at five which indicates a drop from the previous month of 5.2. this is an unexpected decline. economists were expecting an increase to seven. the second data point is leading index. it has seen a sharp deceleration over the last half year from 1% in july 2 .2% in january. we have stayed at that .2%. in terms of effect on the financial markets, u.s. stocks are still lower at least for the snp in the doubt -- the s&p and the dow. 1.9312% in the dollar is at the best levels of the session but it took a big hit yesterday following the fomc announcement. stephanie: thank you so much. now it is time for the bulletin. the top business stories of the morning. there is one more sign that the labor market is remaining strong. last week, fewer than 300,000 americans filed first-time claims for. the numbers show that employers are hanging on to those workers. apple is making its official debut in the dow jones industrial average today. the most valuable company in the world is replacing at&t. apple have been kept out because its stock prices were too high and the index is price-w eighted. activist investor and lehigh university alumni barry rosenstein is selling off a big chunk of his hedge fund. it will by 20% of jana. jana manages $11 million and has been involved in several well-known activist campaigns including safeway, petsmart and hertz. the bank promises to keep interest rates at record lows in switzerland. it was a big blow to the company's exporter and thomas jordan told bloomberg that the markets need time to adjust. >> i'm convinced the markets will realize the swiss franc is overvalued and that is not really attractive at the moment. stephanie: we couldn't afford coffee when we were in davos. a warned the swiss economy may contract up to two quarters. the death toll is climbing in the attack at a museum in tunisia. authorities say 23 people died when gunmen stormed the tunisian parliament and fled to the museum. most of the dead were foreign tourists. no one has claimed responsibility. tunisia was the birthplace of the arab spring uprising but it escaped most of that turmoil that other countries saw. michelle obama is traveling in japan and reacting to the attack. >> on behalf of myself and my husband come i want to join in with the others to express our condolences over the horrific events yesterday in tunisia. our hearts go out to the loved ones of those who were lost in japan and around the world. stephanie: at least three of the victims are japanese. two of the attackers were killed. just a few moments ago, authorities say four people have been arrested and five others detained. we have to turn to the fed. janet yellen yesterday signaled an interest rate hike could be on the horizon but that it could be years before rates completely normalized. let us look at what all this means with roxanne martino. welcome. how much do you think the comments affect your business? roxanne: our managers have to have a view of where the interest rates are going. long before the statements yesterday, they said they felt the rates would go up in the latter half of the year and perhaps even next year. before those comments, there were already saying it was not going to be imminent at all. when rates do go up, it is better for hedge funds. i know that is controversial for some people don't think that. i like to see dispersion of equity pricing. a lot of winners and losers. we have seen the dispersion in energy being a real positive for our long short energy managers with oil. managers can find a winners and losers. certainly health care over the last two years. a lot of winners and losers again. i think with managers of businesses like corporate boards and corporate management looking at interest rates going up in the future we all agree it will happen, they are saying we have a lot of cash on our balance sheets. if we will do something or by something or merge, let us do it now before the rates go up. we see a lot more activism. bill: i think what you are saying is you like volatility and action. stephanie: is not why you pay two and 20? bill: if you can make people money based on trading volatility and this action that is where you guys are focused. i assume comments from janet yellen yesterday add to the volatility and make the markets going up and down. roxanne: we like dispersion in general. a lot of activity is great. bill: this version is the new word for volatility. roxanne: the m&a environment has been very good. activism. boards realize and corporate management that they have to worry about shareholder value. also, the environment with interest rates on the rise going forward is creating a lot of activity. stephanie: what have january and february been like for you? people said there was no volatility in the market. now we have volatility so what does performance look like? roxanne: february was a great month. a fabulous month. a lot of it is what is happening in some of the areas. the change in oil pricing -- some people were predicting a rise in oil with the demand we were seeing from emerging markets. look what happened. it came out of left field and it was completely surprised given -- completely supply driven. there will be a lot of winners and losers going forward. in the future, i think what we will see is there will have to be a lot of companies in energy that will have to restructure. we have had a long. of that's we have had a long time without distressed activity and we are starting to see some of this. companies will have to restructure their balance sheet and reorganize. that will be a boom to managers. stephanie: what is in your special sauce? people said not only do i not want to pay two and 20 but i do not want to pay anything on top of that. how you make your business flourish over the last five years? roxanne: there is a lot of activity in specialized areas. a lot of the growth in the hedge fund industry has gone to bigger and more well-established managers. that has left a supply and demand imbalance on smaller managers that are coming out which is an advantage for people like us institutional allocators that can negotiate preferred economics. we can negotiate capacity. we can give those managers the capital they need to start. stephanie: is that because of the typical endowment out there will not bet on emerging managers anymore because they say no one ever gets fired for investing in millennium and they are no longer betting on the small upstarts? roxanne: i think you really hit the nail on the head. it is also consultants. it is a lot easier to place large institutional pools of capital with large institutional managers. the advantage we have on this supply and demand imbalance with the smaller managers really benefits our investors. in a way, we can take a percentage of the profits that they have on all the capital they manage overtime when we negotiate these deals and then pass it on to the investors. it is almost a synthetic out for that we are adding to portfolios. bill: how is janet yellen going to wind down the interest rate problem? how will hedge funds deal with this? even the mere mention of being impatient set the markets reeling. it is an addiction. roxanne: everyone expects it to unwind pretty slowly and gradually. i don't think anyone wants shocks to the system. we saw that in 1994 in february where there was a shock. i think people learn from that even though it is kind of ancient history. it will be done gradually so people can digest it and predict it coming forward. bill: we shall see. this is one of the big issues of our time in the markets. stephanie: we have to leave it there, but thank you. she is the ceo of aurora investments, roxanne martino. when we return, republican voters weigh in and what do they think of electing a third member of the bush family for president? bloomberg politics team went to new hampshire to find out. when luxury meets silicon valley and the world of high-priced watches will never be the same. maybe it will. maybe it is just a fad. ♪ stephanie: welcome back to market makers. jeb bush may be raising buckets of money, but he is still facing an uphill fight for the 2016 republican nomination. many of his views are out of step with his party voters to the bloomberg politics superstar team decided to talk to real human beings. and focus group made up of 10 likely republican voters in the state of new hampshire. here are 10 of them with bloomberg politics managing editor mark. >> i don't need to keep voting for bush over and over again or a clinton over and over again. when he some fresh faces. >> the common core issue -- i am a teacher. >> i understand where you are on immigration and things like that. that is not someone i would vote for. >> i think he has no chance at all. >> who would here would vote for george bush -- jeb bush? >> i am just not a fan. i don't think the bush family is bad but i would not vote for him unless he was the only choice. >> that is a ringing endorsement. >> i don't like him. >> after his father and brother, i don't think he has a chance. >> anyone thinks he has a good chance? anyone think he is the front runner? probably not. stephanie: there you go. marcusk is here with more. this kind of slides in the face of pundits who said jeb bush is the man to me and he is the guy. it was a no across-the-board. mark: i have been going around saying i think he is a strong front runner. it is a focus group so it is not scientific but these are people who will likely participate in the primary. they were down on him and not just because of his views on immigration and common core and not just because he is a push but because they don't think he can win. stephanie: who do they think can win? mark: they think someone from outside washington will win. they are more interested in someone they think they can agree with that a winner. elect scott walker and carly free arena and rand paul. they like them much more than jeb bush. when i asked if he was a front runner, they left laughed. these republicans have pressed them on it and said he want someone who can win a general election? most of them basically said we want someone who is conservative and we agree with and let us hope they can win. stephanie: but are they realistic because as you noted if you can get past the gop, you cannot win in a general election. to they not see what the whole picture looks like and they haven't won an election a couple of times? mark: i asked them what they want someone they can agree with. there are two things you can say about what happened in that room. jeb bush says when people know him, they will like him better. the other is a lot of voters want a winner. jeb bush will be able to make a case that he can win a general election. these voters were not interested in that. publ george bush one the second time around. stephanie: i want to turn to hillary clinton for a moment. we have some sound i want you to comment on. >> let us think about some of the negative things about hillary clinton. what do you like least about her? >> the e-mail thing. >> transparency issues. >> it was not handled very well and that plays into your ability to make decisions in a big office. >> i feel as though you have to be aware of how things appear to the public. >> who went through her e-mails? >> i think it would have been smarter to use a third-party to sort through. >> seems just like a lack of judgment to do that. you being the one deciding what e-mail you will delete -- if anything, she should have released everything and a third party can decide what is relevant. stephanie: people clearly felt unsettled about hillary clinton and transparency and the e-mail issue. via feel like they were still going to vote for her? mark: almost everyone in the room. one of the greatest condemnations of her came from the people in the room who most support her. a lot of her supporters say no one is paying attention and voters don't care. even her supporters raised substantive concerns. they were troubled by what she did. the republicans are looking for someone a agree with, but these people want a winner. this inner is no one else in the party that can raise the money and take on the republicans to keep the white house. stephanie: seems like they have a house in order much more than the republicans. mark: much more. a lot of people in the room love her. does she have the personality want a president and some of them said no but that is not her strength. they said president obama's weakness was he did not know how to get things done. they love the fact that she has washington experience and can get there and get things done. the republican group does not want washington experience. they want an outsider to go in and change things. republicans say an outsider can change things but the democrats a only someone who is an insider can change things. stephanie: may be an outsider can change things but an outsider cannot get elected. are they not thinking about that? mark: pull-up and said scott walker and rand paul. -- republicans said scott walker and rand paul. if you can work on issues with democrats that you believe are good issues, then bye-bye. stephanie: thank you so much. bloomberg politics' mark halperin and there will be much more on the new hampshire focus group coming up tonight at 5:00 p.m. eastern. "market makers" will be back in a moment. stay here. ♪ stephanie: coming up, one lawyer says the real market madness is that players don't get paid. this guy is suing the ncaa. we will be asking the ceo of a luxury watchmaker what impact the strong greenback is having on his business. stay here. you are watching bloomberg tv. ♪ >> live from bloomberg headquarters in new york this is "market makers" with erik schatzker stephanie ruhle. stephanie: welcome to "market makers." bill: don't mention duke losing. stephanie: don't mention the $20 i am about to discuss. key economic figures are out this morning and the conference board index of leading economic indicators rose 2/10 of a percent last month. index measures the outlook for the next 3-6 months. the philadelphia fed factory index came up short of estimates. the order shipments and employment fell. the weather may have had an impact. i will say it is more than possible. the federal reserve opening the door to the first interest rate hike in almost 10 years. at the same time, the central bank indicates once it starts raising rates, it will go slowly. policy makers including janet yellen ended their assurance that they would be raising rates. she said it doesn't mean rates will rise in june. ellen's honor fed to be very cautious. >> i know we have been there for so long and it feels like a fed that has an itchy trigger figure that wants to get off of it, but why risk it? it is much more safe to wait longer and make sure you're good to go when all the conditions are in place. stephanie: she says before raising rates, they want to make sure the labor market is stronger and inflation is approaching the 2% mark. go daddy has filed for an ipo seeking a valuation of $2.9 billion. it has been more than three years since go daddy was acquired by a group led by silver lake and kkr. its valuation would be at a discount to other servers. americans are not buying music the way they used to. the u.s. music industry shrank one half of 1% last year. it has been shrinking for years. revenue from web radio and streaming services like spotify sort of 29%. that can offset the sales of cds, vinyl records, and digital downloads. it is a changing of the guard here in new york city. our famous yellow cabs are now outnumbered by uber cars. there are more than 14,000 ubers . new yorkers take 440,000 taxi rides a day. they use uber for no more than 30 south -- more than 30,000. bill: what is a $20 billion startup? makes go daddy look cheap. stephanie: we have to talk about march madness. it is here along with the short-lived hope of filling out the perfect bracket. your bracket is not going to be perfect, but guess what we did here. we brought together a group of titans to take their best shot in our bloomberg bracket. we talked to the world top hedge fund members and ceos and leaders. everyone is donating $10,000 for a charity. 36 members have joined in. even if you are a basketball insider, it is anybody's game. might all modern be duke -- my alma mater beats duke a couple years ago. along with most of the people playing, i picked kentucky. 64% picked them. less bang through didn't. -- let us bang through who didn't. surprise surprise paul picked uva. he is playing for robin hood foundation which he also founded. we have four participants playing for robin hood. $360,000 is a lot of money. we need to go to kerry: -- to gary cohen. he will wisconsin -- he went wisconsin. gary chose harlem r.b.i. as his charity. i don't think wisconsin has a chance. bill: i do. i am a loyal duke alum. i think duke has a special team this year but everybody loves to hate duke so no one will pick them. only 5% of your dream team picked them. stephanie: it is the princeton of the south and its campus is very nice and the weather is nice. the girls are beautiful. it is hard not to like. not to kevin, who is the founder of under armour. he chose notre dame. this is the first year he is outfitting notre dame. they are wearing his sneakers on the court. he may have six teams playing. bill: notre dame won the acc tournament and they are actually very strong at the moment. stephanie: he is not the only one. the games begin today. at 12:15 today, notre dame is playing. i bet $20 if you hours ago that they were playing for bill said they were not. all you have to do is type in when his notre dame playing and there you are. bill: happy to do it. stephanie: i hope everyone will be watching. you can check whether it is on the bluebird terminal or on bloomberg.com/charitybrackets. you can watch all 36 playing. i am talking titans playing celebrity march madness. when we return, we will continue on a march madness beat because there are millions of dollars in the ncaa but it means nothing to the players. we will speak to the lawyer who is suing to make that happen. ♪ stephanie: welcome back to market makers. it is time to bring you up-to-date on the top stories of the morning. the labor market is showing signs of resilience. for the second week in a row, fewer than 300,000 americans applied for the first-time unemployment benefits. claims have fluctuated this winter probably due to severe weather. the last two weeks indicate employers are holding onto workers. target will join walmart and t.j. maxx in boosting the wages of its lowest aid workers. in person familiar with the matter says target will raise employee pay to at least nine dollars an hour. retailers are boosting paychecks in an effort to reduce worker turnover which raises overall costs. target is the second-largest discount chain. a nuke new poll shows obama is gaining support. 41% of those polled support the affordable care act. 43% oppose it but that is the smallest gap we have seen in two years. supporters like the expanded access to insurance. more than 16 million have gained coverage through the slot. some of them don't like the cost. the supreme court is extended to rule on a case that could unravel obamacare lately. those were your top stories. coming up in 10 minutes, the luxury smart watch. a swiss watch company teams up with silicon valley. plus the showdown in greece. richard branson's new gig is auto racing with electric cars. nobody does rich better than richard branson. we have to get back to march madness. it is officially in full swing 16 games scheduled for today. and case bill forgets, notre dame is playing. with three weeks of wall-to-wall basketball, the ncaa is set to profit big-time. big-time is a gross understatement. it is the event everyone is making money on. tv networks of bringing in billions of dollars in tv revenue. colleges themselves are making more than $700 million from tv contracts alone. all of us will make $9 billion in bets. think about vegas and the oddsmakers. guess who is making none of it. the fuel, the engine behind this, the players themselves will not get a dime. our next guest says he wants to change that. attorney jeff kessler is suing the ncaa. he wants the schools to have the option to pay their players. what is the case? mr. kessler: the case is simple. the ncaa is a cartel. it prevents the schools in division i basketball and football that generate billions of dollars from deciding whether or not it is fair to compensate the athletes in any way. stephanie: for one of the reasons people love march madness or college hoops is because of the heart and soul. these are real guys playing their hearts out. they want to go on and play in the pros. many would argue that is why it is a much better than pro sports because you are taking out the big money aspect. mr. kessler: i don't think that is true at all. people of this game because they are playing for their schools. that is 100% true. whether or not in a save and gets $8 million to coach, people don't care. whether or not the basketball coach of kentucky is making $6 million, nobody cares. if some of that money were to trickle down to these poor kids most of whom never become pros and most of them never get a graduate degree, what do they get out of this contribution? i do think people would lose any interest in the game if a little bit of money went down to them. stephanie: is a little bit of money? bill: that is the problem. they can't be just markets because that will corrupt it immediately. i am not saying the system is great. i do agree they deserved to get some money. they are getting a college education. that is worth a lot. they are not getting as much as they quit on the open market but then you will destroy what we all in to love about this. mr. kessler: you are a business network. you feel corrupted because there is no rule that stops you from getting paid what you are worth? you think mike bloomberg feels corrupted? stephanie: but we are not in school. mr. kessler: these are businesses and that is what is important to understand. looking at ncaa best ball, it is an $11 billion contract just for this. the schools on their own cable television networks. as i have anything to do with being in school? schools have sponsorships. they can't drink anything other than gatorade. bill: people get charged for failing those silly rules and that is ridiculous, but there is a great area between that and what is being proposed which is let the market decide to pay one person $5 million to pay best basketball in kentucky. mr. kessler: would you watch duke one game less if the athletes on duke were to make 10% of the coach's salary? stephanie: is it about him as a dude fan -- a duke fan? let us talk about how it would affect the university and all the other sports at the university that don't make money. mr. kessler: if they are extracurricular activities where they do not generate revenues they should be treated as extracurricular activities. nobody said you should support the hockey team. why are these poor largely minority kids who generate all this money forced to bear this burden of being the only people associated with this business who do not get compensated? bill: what about the rest of the kids at the schools? mr. kessler: stanford university has a fund that it lends money to get the best and the brightest to develop the next apple. to develop the next big company and the use that to compete and get the best kids. is there any ncaa rule that says they cannot give that money to those kids? nothing. if you want to get the best musician on the band playing at the ncaa tournament, do you think there is a limit that stops the schools from giving more money to get the best trumpet player? bill: are you saying other schools pay the band members to play during the tournament? mr. kessler: the schools give extra scholarships and extra housing and extra inducement if they want to have the top band members. that don't get millions of dollars because they don't generate millions of dollars but they get an amount that no one restricts except for these athletes. these poor largely black athletes that they don't get paid by everyone else does. it is not fair and it is not legal. stephanie: clearly he has a view. bill: without a question. you're in a very dangerous area where you're going to destroy something everyone seems to love quite a bit. mr. kessler: they said that about pro sports. i started out doing that for basketball players and football players. every owner got up there and said if we allow players to change teams if we allow them to make all this money, the fans will stop watching. we are destroying the business. .guess what no one loves the sports more than today. the olympics used to ban people from making money. do you like olympics less? stephanie: we have to go to commercial. you have to take this on the road. jeffrey kessler is a partner and he has a feeling about march madness. see you in a second. ♪ stephanie: welcome back. i'm stephanie ruhle. move over apple. a swiss watch maker is teaming up with google. 's ceo is with us now live from switzerland to explain. welcome and tell us what you are up to. >> thank you very much. i just left a conference or we announced the huge enormous partnership. google and intel will partner together in order to make the next tag hheuer watch. it is an enormous contract because we are going with the two giants to make an incredible swiss connected watch. stephanie: what do you think of the apple iwatch? will you wipe it out? >> no. we are not doing anything against apple. we are trying to make a watch an hour characteristics with our history with our emotions and design. we want our watch to look like our watch. apple is a great company and has a great watch, but we are not at all fighting against apple. we are trying to satisfy our customers who are demanding tagheuer to make a connected watch. we could not do that alone because in switzerland, we do not have the technology at that level like intel. there is only one intel and only one google. those two are the best. we needed the best hardware and people. we decided the best people are at intel. for the software, we needed the best people and we decided the best would be google. that is why we are connected with the best people. if we have the best people on both, you know you are going to be successful. bill: where are you in the process of developing this competitor to the iwatch? >> google and intel have been in switzerland for weeks working with our engineers. we have met 10 to 20 times in silicon valley to present the first watch by the end of the year. the end of the year is an four months. in four or five months we will show the result of this giant partnership. bill: do you have an example of what you are trying to do? you have a prototype you can share with us? >> on purpose, we can share nothing with you today because we did not take any photographs. we want the world and our competition and our customer to discover all of the same time in october or november and to say wow at the same moment. we are working on the surprise. we do not show anything. the only thing people know now is who are the two partners. imagine if you have those two partners, you cannot fail. stephanie: i've like to say wow so i am glad you are here. thank you. stay with us. we have more on smart watches when we return. how are developers going to come up with apps to fit those little screens? ♪ >> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. stephanie: a new frontier for developers. smart watches. how do they get the apps to fit on the tiny screens? and wes's lone voice in the wilderness. the only lawmaker to vote against annexing crimea. he has been barred from the country. and car racing goes green. we are going formula electric. and who to do it but richard branson? excuse me, sir richard branson. i am erik -- i am stephanie ruhle. bill: i like formula e. stephanie: branson knows how to spend money and a fun way. in tunisia the government has arrested 9 suspects in the attack on a museum. 23 people died. most reformed tauris. anisha says that five or -- tunisia says that five or directly tied to the attackers were a cell but they're not saying that they were part of a larger group. do not expect miracles on greece at the summit in brussels that is kicking off in this hour. don't expect any break through it all. european leaders one degrees to come up with a plan to reform the economy before they hand out emergency loans. greece agreed to a framework a few weeks ago. they have not come through with specifics that would convince countries to hand out anything. in switzerland the central bank promises to weaken the franc. it soared in january when the swiss national bank abandoned its feeling of 1.2 per euro. that was a bit low to exporters. the bank president told bloomberg that markets need time to adjust. >> the only time i can pick of the frank being heavily overvalued, it is not attractive at the moment. stephanie: time to adjust. this was economy may contract for two quarters. russia has the clear the worst of the economic crisis over. the russian finance minister says the peak of the crisis is behind the country and he has seen signs of stabilization. russia is shaking off to be problems. the lowest oil prices since 2009 day economic sanctions over the conflict in ukraine. mortgage rates are falling. freddie mac says the average 30 year fixed-rate loan fell below 3.8%. a year ago the average 30 year mortgage was under .3%. -- under 4.3%. the rates are historically low even though the fed has ended its program holding down rates. a touchdown worth nine points? check out this idea from the indianapolis colts. a team would have to trail by 9 points in the closing minutes. if it scores a touchdown and a two-point conversion it is eight point. the colts suggest the team try a 50 yard real go --yard field goal for one more point. we have to take you back to the showdown in brussels. is it a showdown? and more pressure on the greek prime minister to firm up a plan for the economy. what do you really expect from these talks? pomp and circumstance or results? >> germany's angela merkel has played them down. the eu president said a while ago, before the summit started that this is not greece possible last chance. i'm not sure that we expected any big deals or announcements. angela merkel and the other players want to hear what the greek prime minister has to say. they will sit down with him on the sidelines of the summit to see if they can get more information about the reform proposals that greece is putting forward. bill: jones, do you have any idea on the status of the deal with the creditors that the investment bank lazard was heading up? you have any insight on where that stands? jones: at this point it is on hiatus. they have put the taught loca -- they put in a technical talks on policy to wait and see what the outcome of the meeting today is. we are waiting to see what happens. what the language is after the meeting. it will be late in brussels, because they have the regular summit, and then they have the special meeting. stephanie: are the greek finance officials realistic about their situation? it seems like the comments we have been getting out of the finance minister is that he is not a technology how grave things are. jones: this is one of the things. the eu, they icbc, they are trying to get a close look at the books in athens. they are not satisfied with the answers so far that they have gotten from the officials and advance. they're trying to dig into the re. bill: and have the willingness of greece to engage with these creditors. has that hurt their standing at home with voters? jones: you have two different messages. greece has made commitment to the eurozone and to its creditors to get the $240 billion euro bailout fund. at the same time separates has made campaign promises during the election to say that to the austerity program tied to the bailout money will end. that has been the negotiation going on. merkel france and the ecb will be telling them that you cannot have it both ways. you have to work with us to make this happen. stephanie: let's be honest. he may have made his promises while he was campaigning, but is he in a position to fulfill them? jones: he is the leader of the country. you could argue that he can do what he wants. if he does not satisfy his creditors, if he does not satisfy the eurogroup, the ecb and the imf his funding will be cut off. that will be a big problem. greece is facing a credit crunch at the and of the month. they hope they can satisfy the creditors and the euro group and the ecb to get another eight payment of where the end of the month. stephanie: hope. i wouldn't like to thank my country's finances rested on hope. when we return, this young man is leading yahoo! into the wearable era. figuring out etiquette apps on a smart watch. when a 16-year-old gets paid $30 million for his cap, -- for his app i was a 10. and we will speak to the only legislator in russia who voted no against annexing crimea. you're watching bloomberg television. ♪ stephanie: welcome back. i'm stephanie ruhle. let's bring you up-to-date on the top stories of the morning. the philadelphia fed factory index came up short. falling to the lowest level in over a year. the bloomberg economics seen says the philadelphia fed survey is an indication of weakness to come in the economy. indicators rose in february reflecting high stock prices and an increase in building permit. the two tents of an increase is short of 2014. a website hosting company, go daddy, has filed for an ipo. it has been over three years since it was acquired by a group . the valuation would add discount to another provider. at the high end there would be a multiple of two times of a sale. amazon, is in -- is expanding the same day service. previously, amazon prime service was limited to selected areas in new york city. a two-hour delivery is free. one hour will cost eight dollars. amazon will brought the service to other cities. in 10 minutes russia's voice in the wilderness. the only lawmaker to vote no when russia annexed crimea. and bracket busters. can some of the other names in businesses make it better march madness picks than you? and music airplanes, and outer space. what will richard branson do next? olivia sterns found out in miami. we will talk apple watch. it is going on sale next month. the stakes are high for developers trying to figure out how to fit an app on the tiny screens. you know him as the founder. the teenage founder of what he sold to yahoo! for $30 million when he was 17. he is 20 years old and runs a company's yahoo! news digest product. i've not seen you in a year. you are working a look with the mustache. this is a whole new you. are you trying to get into bars in silicon valley? nick: i am still 19. i'm studying at oxford. i thought i would try to look older. stephanie: it is working. let's talk about your day job. getting apps on a tiny screen. how will you do it? nick: the apple watch gives opportunities to developers. we expect a higher frequency of sessions with a five to 10 session length. this is being done on a large screen format. we now have a logarithm that can be summarized down into a visual point. we think that this will be great on the apple watch. stephanie: how small does it need to be? how will you take a longform piece of news and make it that small? nick: you will be saying next month what the manifestation is. we have been thinking about assimilating new stories. digest, the product we have now, we send them once in the morning and evening. they contain all of the need to know stories. it is comprised of a textual summary and visual news that we call atoms. we will give you visual forms in atoms and the textual summary. in september at of the watch launch we were approached as to how we would integrate digest. we had a long time to conceptualize the ideal musical experience. we tried to come up with something unique and specific for a wrist experience. bill: can you explain how yahoo! will make money working with apple to miniaturize the news? nick: there are motivational strategies. because of the small screens and micro sessions, the content needs to be very native and useful to the user. the only have five to 10 seconds. users need the information they came to the service for. if there is an advertisement and needs to be relevant and part of the experience. flashing a banner halfway through the experience will turn off users. we are trying to elevate news consumption in general. when we have gotten to a threshold when it comes to the volume of users, we can look at different approaches to the advertisement and modernization. stephanie: for app developers you can not fit five or 20 apps on the small screen. will the boom of wearables hurt apps? nick: i don't think so. they will have to rethink their approach to the watch. it provides an interesting challenge for developers. a lot of innovation comes out of constraint. and also tackling new platforms and getting the process to look at user feedback to quickly update the product as we see fit. stephanie: are you going to wear the watch? nick: i cannot wait to test it out for myself. stephanie: as a cool 19-year-old, are you going to buy the $10,000 version? nick: no, i will probably get the color for one to fit the shirt. bill: i don't know if you are aware of the announcement that was made in switzerland that they're working with google and intel to create a competitor to the apple watch. is there any buzz on that in san francisco? are you developing apps for that? nick: we have looked at the android watch experience. there is a massive opportunity for the fashion industry to collaborate with the technology industry. they symbolize a certain status or class. the watch has come up with a visually appealing and technologically relevant experience. over time i think you will see the fashion brands working with the tech companies given it is such a fashion item. stephanie: we know how secretive apple is. have you worked with the watch? when you are creating the app? nick: we were just told to work on new and interesting ways of consuming news on a smaller screen. some developers have been selected to go in and do testing . we are excited to get it out there with everyone else. it is survival of the fittest at the end of the day. the best apps will dominate the program. a lot of the other companies are taking their content on the phone and mimicking it on the watch. they're not thinking about how to make the content experience useful when they have the concentrates -- the constraints of a small screen. stephanie: what made you decide to go back to school. especially now that you are in the tech world. you sold your company for $30 million without a high school degree. nick: i very much in two nourishment through knowledge. i need to be intellectually stimulated. i wanted to study a course like computer science and philosophy at oxford university to broaden my skills in the philosophy section. i am enjoying balancing the oxford education with what i do at yahoo!. stephanie: what are you majoring in? nick: philosophy and computer science. it is an interesting combination, but very relevant. it is similar to what marissa mayer did herself. stephanie: you never cease to amaze me. i went to college and i never thought it was because of a nourishment of learning? nick: a nourishment of knowledge. bill: that could be the tag for yahoo! on their homepage. stephanie: it is great to see you. i love the mustache. congratulations. nick d'aloisio a product manager at yahoo! news digest. nourishment of knowledge? bill: i want you to call your sons in college and asked them if they are experiencing a narrative that of knowledge. stephanie: i didn't at the time, but i am clearly not nick. game start at 12:15 for march madness. i know that because i bet that they were playing and i won. we'll be back with more. remember, the charity tournament, 370 grand. stick around, bloomberg tv. ♪ stephanie: welcome back. i'm stephanie ruhle. with bill cohan. the market has turned green. we have seen volatility. people are looking at the doubt. apple officially joins the dow. it is price weighted. that will make apple that the biggest stock in the dow. yesterday it was ibm. today it is goldman sachs. i am surprised that apple stock is not doing much. i thought we would see a boom in retail action. it has been quiet. bill: it shows you how goldman sachs is everywhere. they have the vampire squid thing going on today. stephanie: i fight you all the time about the goldman. i fight you all the time about how you love to say this is the golden age of thinking. -- of thinking. it is the golden age of thinking if you are a shareholder. if you're outside the industry a you are not. six years ago when you are an employee it was fantastic. it should not be, you are just a employee of the company. finally you have it right sided. i can learn. the issue is, i preferred it when i was an employee and it was wrong sided. bill: finally they are getting shareholder friendly. stephanie: a little bit. every once in a while bill cohan is right. will back with russia and vladimir putin when we return. ♪ announcer: live from bloomberg headquarters in new york. this is "market makers," with erik schatzker and stephanie ruhle. stephanie: welcome back. i'm stephanie ruhle. bill: i'm bill cohan come in for erik schatzker. stephanie: the dow jones industrial average is given back. the nasdaq outperforming. i'm going to take you to scarlet fu. scarlet: for the nasdaq, facebook is hitting a new high trading at a new record above its closing high of 81 .45. up by more than 2%. we know that earlier this week the company said it is rolling out a 20 let users send money to friends through the messenger app. i guess now we know why you have it. so facebook can get in on this digital while at space area this comes after facebook hired a former president of paypal. we should also mention piper jefferies has downgraded ebay. one of the reasons why is because of increased competition. he says that will all weigh on ebay's market share or the next one to three years. i wanted to give you a quick check on europe as we enter the final hour of trading there. the two date eu summit. uncle of merkel said do not expect -- angela said do not expect a breakthrough. greek stocks are falling for an eighth time in 10 days. yields on greek bonds are moving higher. this is the three-year right now. auntie 3.82. -- 23.82. a lot of people calling that jump a short covering rally because of what the fed did. stephanie: as it relates to greece, if you listen to anything happening in brussels we just spoke to our bureau chief. i do not think we are going to see those greek numbers turn around. thank you for giving us the latest markets update. i'm going to talk about a basketball update. march madness is here. we are doing something special. we have asked some of the worlds top ceos and hedge fund managers to give us their brackets along with a pledge to donate $10,000 to the charity of the winner's choice. 36 people are playing which means a total of 360 grand to a very worthy cause. tying and competition philanthropy and college hoops. bill: i am very impressed by this. out of nothing, you have created a charity that is going to give away $360,000. stephanie: my team and i had the idea to do this. i went to mike bloomberg he said, i am in. almost across the board basketball fans or not, everyone said, i am all in. not surprisingly, over 60% of the participants picked kentucky . let's look at a few specifically. founder of payment capital -- of hayman capital is playing. he has chosen kentucky as the winner. i thought we were going to have team names. i wanted him to go with bass balls. kyle disagreed. bill: i'm not sure i see carolina or louisville in the final four. stephanie: who did you pick? bill: duke. they have a great team this year. i think they could have a repeat of the victory. the christian laettner shot. there is a whole espn show about it now. this is a great show for duke haters. stephanie: let's look at t-mobile's ceo john leisure -- john ledger. he did not necessarily go with kentucky to win. he is a guy who likes to go against the grain. he picked wisconsin. gerry connolly goldman also picked wisconsin. vikram pandit, former ceo of citibank he is playing with us. he went with the lead choice. kentucky. he also has arizona, lower bill and he -- louisville and gonzaga. i would have loved if president obama was playing. he is not. mark lazard he is playing. i do not know who mark chose. mark is a co-owner of the milwaukee bucks. he may be eyeballing that kentucky team. bill: they are not a one and done cruel. we will see if they take it all the way this year. stephanie: you can follow it not just on bloomberg tv but on the bloomberg terminal and online at bloomberg.com/charity brackets. i'm going to be talking about this because i really want my cause, girls inc. of nyc, to win. robin hood is actually the leader. i think four of our participants are playing for robin hood. check us out online on your terminal, on tv. we are all about the titan edition of march madness. bill: i think you started something. stephanie: a million dollars next year. we will see. i'm glad bill and i agree on something. it is so rare. i want $20 from him today. bill: notre dame is playing at noon. stephanie: when we come back, we are talking about richard branson. he has always got something new going on. olivia sterns went down to miami and found out what he was up to. he managed to work in the miami dolphins cheerleaders into a car . leave it to richard branson. ♪ stephanie: occam back to market makers. formula on racing is one of the worlds most popular sports. there is a younger greener version of the race, formula e. olivia sterns this girl works so hard. she went down to miami to talk to serve richard branson on a beautiful saturday about why he is backing this new sport. olivia: nothing fuels innovation like a little competition. at least that is the idea driving formula e. >> when you have tens of millions of dollars invested to win a sport, new breakthroughs happen. olivia: formula e is the world's first fully electric racing series. it is aimed to promote our and the electric cars. the combination of glitz and green energy make this a natural fit for richard branson. i tracked him down at the virgin racing garage in miami. >> formula e fits in perfectly to our whole aspiration for new -- for renewable energy. i hope people will walk on the streets -- people find it as strange as finding someone smoking in restaurants. olivia: formula e is a spinoff of formula one. there are a few key differences. formula e drivers do not just taint -- change tires. speeds tap out at 160 miles per hour. >> you hear the screaming of the tires on the road. it is different. you don't have the roar. it is just as exciting to watch. as people get used to these drivers the amount of people who watch will grow. olivia: one of 10 teams competing in formula e's inaugural race. for now, teams all use the same electric car. next year they will be behind the wheel of their own technology. is there a business opportunity for you? >> we have virgin racing engineering on this side of the car. we have teams of people trying to develop and work on electric cars. you may well find virgin competing with tesla in the car business as we do in the space business. ♪ stephanie: here with us, olivia sterns, breaking this very serious story. that is rad. olivia: i loved it. there is tons of money, a lot of celebrities in formula one as there are in formula e. the first difference is the sound. the cars go by with high-pitched whine. the guys in the pit whistle to make sure you know they are coming. formula one, you have this deep engine roar. you see the driver, he jumped out in between in the middle of the race because the car battery only lasts for half the lap. bill: half a lap? olivia: half the race. this is all about trying to get innovation and the technology they develop for all the investments. to trickle down onto main street. bill: is this not really about the racing? olivia: it is just like formula one. stephanie: formula one is about partying. olivia: i was talking to richard branson about partying and formula one. here's what he had to say. >> i did work for a formula one team wants. we won the series. olivia: you're the only person who has not lost money in formula one. >> we were very lucky. i got so drunk that night. olivia: i am hoping that you win and we can all replicate that. >> we will all go out and celebrate. olivia: there is a business opportunity in this form. there's a reason why virgin engineering is spending all this money. as he says, one day they might take this technology and give the lawn mosque a run for his money -- l onelon musk a run for his money. bill: how much has he invested in this? olivia: it is not public but obviously he has -- the whole enterprise, it is got to call it -- cost him $50 million. stephanie: what does he care? olivia: he is not looking at this as charity. it is an investment into green technology he will use. stephanie: maybe it is an investment in fund and you cannot put a price on that? bill: that is a novel thought. is there a sense that the drivers like raising these cars? olivia: we spoke to a couple of professional drivers. have you ever driven electric car? the pickup is instantaneous. they are lighter and move differently. they have a lot of professional racers now driving formula e cars. branson himself is in third place. if he does in fact when i hope to be at that party. stephanie: of course you do. i was trying to go kite boarding with him. those photographs are incredible. bill: you just want to go to the sea. stephanie: the thing about mystique is you need to be invited. you can rent a house anywhere but if you show up at mystique uninvited, you would rather stay home. olivia: agreed. stephanie: olivia is on my team. that is tragic to go to mystique with no party to go to. on that note, olivia is going to be leaving us. "actually stephanie, i was invited." you know what, i just cut olivia's microphone. let's get to some news. islamic state says it was behind that deadly attack on a museum into easier. the group issued a statement calling the attack and invasion of a den of infidels. authorities now say 23 people died when done men stormed -- gunmen stormed the tunisian parliament. most of the dead were foreign tourists. tunisia said it has arrested nine suspects. apple is making its debut in the dow industrial average today. replacing at&t. apple had been kept out of the dow because its stock price was too high and the index is price weighted. apples lit seven for one. that cleared the way for the company to be added. the lowest paid workers at target are getting a raise. a person familiar with the matter says target will raise employee pay to at least nine dollars per hour . walmart has made a similar move. retailers are boosting paychecks in an effort to reduce worker turnover. target is the second-largest discount chain. "market makers" will be back with more. stay with us. i have to think about the fact that i never get invited to go to places like mystique or hang out with richard branson. bill: that might change. stephanie: stay with us. ♪ stephanie: welcome back to "market makers. i'm stephanie ruhle. the only member of the duma who voted against the annexation of crimea. he got stuck in traffic area unfortunately, we are out of time to read we bring you that interview tomorrow. you will have to sign off but we have a lot more to cover. it has been a big year for big pharma. bill and i will be sitting down with the president of astrazeneca. we will also be talking march madness. tip-off at 12:15. hopefully some of those titans in the match with me will get knocked out early. we will find out. bill: big again tomorrow night. ♪ >> bloomberg television is on the markets. u.s. stocks pulling back after yesterday's fed induced rally. the nasdaq holding up the best. it is still positive. it is trying to make another run at the 5000 level. wti resuming its plunge. joining me for today's options insight is max brier. give us your interpretation of the fed's actions yesterday. max: a goldilocks outcome. patient was dropped but it was more than offset by lowering of the dots. concerns about the dollar. things that offset the hawkish outcome that dropping patient came with. scarlet: what does this mean for volatility? chair yellen has opened the door to interest rates. she is also removed the forward guidance. max: what it means is that these data points are going to be scrutinized. the fed has restated they will be data w dependent. scarlet: is volatility priced appropriately? max: i think it is going to be hard to tell when ball picks up. -- when volatility picks up. kind of a conundrum in terms of should volatility be hired now or a few months from now. scarlet: when it does pick up it could be violent? . you are also looking at dollar strength. a lot of people saying that the fed has decided to stabilize the dollar before it does damage to companies and exports. consumer staples are very did -- very dependent on a weaker dollar to boost sales overseas. you are looking at the xlp. how does your strategy fit in with what the fed did? max: the group as a whole captures a lot of international exposure area that the movie the dollar has been extraordinary. know where can you find a group that is more collectively exposed to a stronger dollar. some of these companies derive more than 50% of revenue overseas. this dollar strength is going to impact their bottom line. i think it is a group to look at. maybe with a cautious eye in terms of how that dollar is going to affect revenues. scarlet: what is your trade specifically? max: looking at something like a 4641 put spread gives you a nice range of protection for about $.55. nice leverage for a downside play. scarlet: lows lower than the past 12 months. max: the dollar is an unprecedented territory. scarlet: even after yellen's statements yesterday suggested the dollar's rise may slow down? max: the reversal today in the dollar is what is giving me some pause. we are seeing those unwind. scarlet: thank you so much for joining us. "money clip" is next. ♪ ♪ >> welcome to "money clip. ." apple joins the dow jones industrial average. in motors, richard branson of urgent alert -- of virgin electrifies racing. it is luxury getting it for less in the far east.