The Snowden Saga: Lunch Money (08/12)

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Aug. 12 (Bloomberg) -- On today's "Lunch Money," super-charge the day, and devour all that's driving the markets: stocks, bonds, currencies, commodities, options. (Source: Bloomberg)

. welcome to "lunch money." i am adam johnson.

We have the best business of video anywhere.

Let's take a look at the menu.

His dad is getting in on the action.

Meanwhile, elon musk is a man with many companies to his name.

Today, he is going to tell out his newest innovation called the hyperlink.

If you're one of the lucky few who travel by private jet, we will show you how the business has evolved into more than just an airplane.

In sports, the pga championship knishes with a winner you might not have been following throughout the tournament.

In top, breaking bad's final season kicks off with a bangor.

We hear from the main cast.

Let's kick it off with edward snowden.

The fugitive under a silent in russia.

He will have another chance to tell his side of the international saga.

That will happen later today.

He would give an interview to russian state television one hour from now.

Everyone has been talking about him.

At this point when you consider many of the statements laid -- made by our leaders, they are irresponsible and inconsistent with our system of justice.

They have poisoned the well in terms of a potential jury pool.

That was snowden appearing by his family lawyer.

He is not happy about his sons of situation and understandably many of the people he is talking about are not too happy either.

A word for somebody who stole our secrets who got the job to steal our secrets and then he moved with the secrets to a foreign country and made the secrets public.

It wasn't whistleblower, it was defective.

I think that is a good word for him.

Snowden's father took it one step further when all the way to the oval office.

At this point, i would like for this to be vetted and open court for the american people to have all of the facts.

And i have seen as much political theater.

I was disappointed in the president's press conference.

I think that is driven by the understanding at the american people are unhappy with what they have learned.

In case you missed the president's speech last friday, here it is.

He has been charged with three felonies.

If, in fact, he believes that what he did was right, then like every american citizen he can come here, appear before the court with a lawyer and make his case.

Our decision to not participate in the summit was not simply around mr.


It had to do with the fact that on a whole range of issues russia has not moved.

So, we cannot consider that strickland punitive.

If anyone out there is asking if one mid-level employees actions can have an impact on global policy, here is this.

U.s. and russia need to cooperate on the iranian issue, the syrian issue.

Something like this, a single man caper stops the dialogue is not good.

The president gave his news conference to put americans at ease over u.s. intelligence.

Here is the cliff notes version.

First, i will work with congress to pursue appropriate reform t oates section 215 of the patriot act.

As i have said, this program is an important tool in our effort to disrupt terrorist plots.

It does not allow the government to listen to any phone call without warrant.

Given the scale of this program, i understand the concerns of those that would worry that it could be subject to abuse.

After having a dialogue of members of congress, i believe there are steps we can take to get the american people additional confidence that there are additional safeguards against abuse.

Second, i will work with congress to improve the confidence in the surveillance court.

It was created by congress to provide judicial review of certain intelligence activities so that a federal judge must find that our actions are consistent with the constitution.

One of the concerns that people raised is a judge reviewing the request only hears one side of the story.

I think we can provide greater assurances that the court is looking at these issues from both perspectives.

Number three, we can and must be more transparent.

I directed the intelligence community to make public as much information about these programs as possible.

My program will make public the legal rationale for the activities in the patriot act.

The nsa is taking states -- steps to put it in place.

The intelligence community is creating a website that will serve as a hub for further transparency.

Fourth, we are forming a high- level group of outside experts to review our entire intelligence and communications technologies.

They will provide an interim report in 16 days so that we can move forward with a better understanding of how these programs impact our security, our privacy, and our foreign policy.

How does the former white house security guru think the switchover?

Maintaining political and popular support for his surveillance program.

He had achieved legal support of bipartisan consensus before snowden.

It was in a good tone.

It was people with top-secret clearances.

They all agreed.

They find out their secrets are disclosed and all of a sudden the politics have changed.

He is trying to figure out how to maintain a top-secret surveillance per gram that is operationally secret.

Transparency and spying?

Operational secrecy and policy and illegal transparency.

If the argument here is that the details need to be kept secret, but maybe we can be a little more transparent about the rules of the game.

Are we getting too much transparency on these terrorist threats?

All this transparency is not necessarily helping secure matters, is it?

When you get classified intelligence, eventually it comes out even if they try to keep it secret at the beginning.

It has dribbled out that it really was a yemen focused a lot.

Of the terrorist threat is over, save yemen.

The plot originated in yemen.

That was one of the most dangerous.

Let's bring it back to mr.


The family lawyer stuck to business.

We have a date which we will not disclose right now.

We intend to visit with edward and suggest trick -- suggest criminal defense attorneys.

We will keep you updated on the snowden interview in russia right here on bloomberg television and on lunch money.

The father of tesla electric car wants to put you in a faster lane.

He is unveiling plans for his so-called hyper loop.

That happens today.

Plus, the company that has taken extreme marketing to new heights.

We will show you red bulls daredevil approach to selling energy drinks.

? this is "lunch money" on bloomberg television and we are streaming live on

I am adam johnson.

In innovation today, elon musk reveals his plan for a high- speed transit system that he says could transfer people from los angeles to san francisco in 30 minutes.

He is calling it hyper loop . if it sounds impossible, he can handle the criticism.

Here is what he told bloomberg.

We are looking for an opportunity where there is an industry that is stagnant or declining, where the products have remained pretty much the same or gotten worse.

Working in industries where people think they are impossible or where they cannot succeed.

That is where there is opportunity.

In the space industry, things have gotten worse over time, not better.

We went to the moon in 1969 and now the space shuttle is retired . we cannot get a single person into orbit without the help of a russian -- without the help of the russians.

That is a terrible trajectory.


On the face, it appears to be daunting.

How can you prevail in an industry dominated by others who received huge subsidies.

What does subsidies have done is made those companies inefficient and reliant.

They are not good at innovation and unwilling to take risks.

Provided you can get through that initial startup phase, once you exceed them in technology and they have no real ability to catch up, that is what we are finding with spacex.

We have more contracts than any other company.

The world is going to change dramatically.

The important thing is to identify something and aim for a big problem rather than a small problem.

Just look for industries that are functioning poorly and been stagnant or in decline.

It is worth trying to start a company to change the way that industry behaves.

More on elon musk's hyper loop announcement throughout the day, plus a special edition of risktakers featuring elon musk tonight at 9:00 eastern.

Let's stay with extremes.

Read a book has been making a name for itself with innovative and eclectic marketing strategies that go way beyond traditional advertising.

Their formula one racing team has won the world championship three years in a row and they even put their own daredevil into space 24 miles up.

Let's take a look at the companies logo that is associated with every extreme pursuit.

Awesome stuff.

Let's bring it back to earth.

The pga championship finished this weekend with a win or you might not have expected.

Before we go to break tom a the prime minister of norway going undercover in a taxicab as part of an election stunt to get support for his labor party which is gotten behind in the polls.

The economy is not doing well.

This was one crazy ride.

? in motors now, people packing up for the big summer trip.

There are a few lucky ones who know how to fly in statoil -- in style.

The private jet celebrates its 50th anniversary this year.

It was our first airplane to be renamed the falcon 20. we found our bird.

When we were first producing, it barely went 1000 nautical miles.

It is now capable of almost 6000. clients have been changing -- evolving, so to speak.

They are looking for more real- time information.

And nearly days, it was not a phone system.

They could not come on with a black area or iphone.

If the wi-fi is not working, being able to stay in touch and communicate is critical to their business.

There is an app for the airplane to control the different tvs and video sources.

People are looking for two things.

Cabin comfort and speed.

Hitting there quickly and efficiently.

We save the entrepreneur who flies quite a bit of time.

Honda has its own response to the personal airplane.

It is called the honda jet.

Three decades after its founder dreamed of building planes.

Bloomberg spoke to the aviation ceo.

We are bringing what we cultivate in the car business to motivation.

It cannot survive unless they focus on services and introduce new technologies.

What honda brings into the business jet industry is this whole business style.

Not specific technologies.

He wanted to make cars, but honda wanted him to learn how to make planes from scratch.

It increases fuel efficiency but it has been a struggle to gain credibility.

Three or four years ago we were met with skepticism and people thought we were not serious or doing this just for pr or making it a technological icon for honda.

Honda aims to per form -- to produce high-performance jets.

Since i honda jets have good fuel efficiency and are quite, we think they are competitive in the charter business or to be used as air taxis.

The next step will be fleet sales.

Rivard received inquiries about this.

It will increase in market five.

Honda says it already has orders and will turn profitable in five years after the first planes are delivered.

It is just waiting for u.s. authorities to give the ok to start deliveries.


honda died in 1991 and never lived to see his dream take off.

All well and good for the rest of us, we fly commercial.

Here is charlie rose with the ceo of united continental.

Airlines are complex and businesses.

They have very different fleets and facilities.

If they have different technologies and different routes, different cultures.

In many cases, underinvestment that you have to do catch-up investment on just to bring it where you need it to be.

They are also heavily unionized so you are dealing with labor unions and contracts.

It change is hard.

Even when it is good, people resist it.

Its takes a lot of time to get it done.

We are well along in the process.

We have some more things to do, but most of the heavy lifting is behind us.

We have a couple of systems to go that our customers will not see.

For example, our hr system.

We have actually gotten collective-bargaining agreements but we have to do joint agreements with the two groups.

We have that with the pilots.

One agreement with continental and one with united.

We have that today.

You need to work through the process.

That takes time.

We are not necessarily in control of that process.

There are many tough nuts to crack.

You can watch the whole interview right here on bloomberg tonight at 8:00 and 10:00 p.m. eastern.

Breaking bad has just begun the second half of its final season.

We will hear from the creator as to how he keeps us on the edge of our seats.

? let's get you caught up on where the markets are trading right now.

Stocks are fluctuating.

Extending decline from last week.

The nasdaq is trading higher by some big names in technology.

Two stocks we are keeping our eyes on, linkedin and yelp.

? this is "lunch money" on bloomberg television.

We are streaming live.

I am adam johnson.

Today's moving pictures.

The battered northern elohim's over the weekend.

Storms causing massive flooding and bringing down power lines.

The storm caused waves more than 80 feet high.

In venezuela, a massive fire broke out at one of the countries massive oil refineries.

They say a lightning strike was to blame.

There were no reports of injuries.

In central florida, a massive sinkhole gave way.

Guests were evacuated at the resort which is just 10 minutes away from walt disney world.

There were no reports of injuries.

We are going around the horn in sports today.

Not one of the names you would be looking for.

Jason winning by two strokes.

Two years after he lost in a playoff.

He began playing golf at 15 years old.

In track, bolt is once again the fastest man in the world reclaiming his title over the weekend.

He lost his title due to a false start.

This time he beats an american.

How did he feel about the win?

Was just one of those days where it was not perfect weather.

Winning is what i came here for.

I came here to defend my title.

In college sports, the ncaa is exiting the profitable business of selling players jerseys online.

The debate is heating up whether schools should be able to profit from their stars without painting them.

Tom keene asked what is new in this debate.

What is new is they are exposed.

The public is grasping what they have been doing for many years and in other ways, it is very silent and a way to manipulate the athletes who play in "amateur" sports.

The public is much more aware than they were.

How'd should they be compensated?

Should there be some form of payout if they graduate?

None of those ways.

This is not a pay for play.

It is pay for playing.

They already paid.

It is over.

-- they already played.

It is over.

What the public will find out is that these individuals, past and present, have not only been not compensated because by the use of amateurism as an award that they apply only to their meeting . they have not done anything for these kids.

I have always believed personally that they should not get played while they are playing college.

I don't think that is in the scope of the suit.

But when your class, not meaning graduation, but if you go next year in 2014 and your class graduates, that would be the four-year term.

If you played in a monetized sport and you are part of the games, the films, the photos, then your -- than you individually are entitled to some of the monies that are read from that.

That is what the class-action is all about.

Debate across college campuses regarding athletes.

How do you bring a community together?

How about a puppy?

University has announced the new ambassador.

A five-month-old golden retriever.

They expect he will unite the campus.

Part of her job, leading the football team onto the field.

She is pretty cute.

I think i need one.

Jcpenney making headlines.

Does he have a good enough set of reasons for a coup?

We will hear from two men who say, not really.

Here what the cast and creator of breaking bad have to say as the hit show debuted its season finale.

? and this is "lunch money" on bloomberg television and we are streaming live.

I am adam johnson.

In shopping, a big week ahead.

Walmart, macy's, nordstrom, all reporting earnings lady -- later this week.

What is really grabbing headlines is jcpenney.

Blackmun has artie put the ceo on the blacklist.

-- this ceo is on the blacklist.

He says things are not happening fast enough.

Here is how the spec is explained.

Week business brings a stock prices down which attracts private equity players who are nonretail who see opportunities to improve the value of these enterprises.

At the end of the day, a retail business has to be run by people who understand that the retail business and none of these folks to do.

Understand that he lost credibility after he helped place ron johnson at the helm.

His tactics drove away customers.

Sales fell 24%. here is what a retail analyst says about the ceo shuffle.

It is the worst debacle on the craziest self-imposed lunatic management i have ever seen.

The management did not do anything.

He decided the old customers were no good and retailers spend their life getting a customer, nurturing that customer.

You do not throw them out and that is what ron johnson did.

You cannot go from a $19 billion company toa $13 billion company and survive.

He acted up and put in $2 billion.

If they put him out and he lost 90% of his money.

That is what happens when you go to a good company.

When they say they will get a fix for the holiday season, that is because it is not committed.

Dropped $4.2 billion last year.

It's just getting them to some sort of a position of even business will be heraldic, but getting that $4 billion back is something that is not going to come from the efforts we are hearing about.

Do you side with the bill acumen?

Use and his moves are right?

Or is he making it worse by taking these demands public?

Taking these demands public is nuts and no one would do it, but i do believe they need a permanent ceo who is clearly not the right choice to be a permanent ceo.

If you look at his prior performance, terrible.

Where is the market?

Walmart and the low-cost people.

You have the high-end doing pretty well in manhattan.

There is nothing in the middle.

If you look at pennies before all the crazy things happened, this was never a great company.

At their productivity report was always at the bottom.

But if you look at their business, they were making three dollars a share.

They were going along.

They had loyal middle range female customers.

This is a viable, stable business.

It was instantly destroyed.


-- ouch.

We are talking about the gap.

For the first time in four years and only the second time in seven years, gap ads are coming back to television.

The campaign is called back to blue and focuses on their iconic denim brand.

How did breaking bad' to come up with such a terrifically horrible character in walter white?

We will have the answer coming up next.

Blood for blood.

I am in the empire business.

What is the plan?

I do not know.

You are a time bomb and i have no intention of being around for the boom.

? you may have been one of the millions sitting on the edge of your seat for the beginning of the end of breaking bad.

The hit series entered the second half of its final season yesterday.

The show creator spent the last 16 episode into first and second halves trying to maximize the advertising.

How did a show about a teacher turned meth dealer even get started?

Here is the shows creator on charlie rose.

My friend tom jokes in his dark humored way that maybe we should build our own meth lab in the back of an rv and make some money on the side while we're in between jobs.

Suddenly this idea pops into my head for this character for at that point i did not have a name for who would do such a thing.

A character who became known as walter white.

I think what was going on at the time was that i was about to turn for two years old.

This was in 2005 or so and reverse engineering, looking back in hindsight, i think i was interested in writing a story about a guy having the worst midlife crisis.

The basic idea for the show was to take the protagonist and turn him into the antagonist.

It did not sell to everybody.

Some people said, not right for us.

Which is very often the case, to be fair.

Any tv show or movie you have ever seen that you have loved or hated, most likely had a history behind it up 10, 20, or 30 people saying no before one person at the right place and right time said yes.

Some were convinced immediately -- or not convinced immediately with the cast.

I did not know it was colloquialism.

I said, let's see what this is about.

First page, a pair of trousers falling from the sky, bright blue.

The red rock, hitting the dirt.

Interior, rd, a man in tidy white teeth underwear drives madly down this road.

Next up, a man is passed out.

Dallas was page one.

I was getting nervous.

-- that was a page one.

He got you right away.

Are wonderful casting director, she was trying to get me to come in and i was so tired of being a new mom.

I canceled a couple of appointments.

She called me and said, what is wrong with you?

I said, i am sorry.

She said, sit down and read this script right now.

I got off the phone and i read it.

I closed it and i said, that is by far the best script i have ever read in my life.

There was not a huge amount about her in the pilot.

I just wanted to know a little more about her.

And divisions is to me, one line.

She will be carmela soprano but she will be in on the crime.

-- but she will not be in on the crime.

The interesting thing about jesse is that he is a guy who has friends and develops relationships.

He is desperately in need of guidance, so he turns to walt , i think, really as a father figure in a way.

He just wants him to kind of see him as he really is.

It had to be done.


so what do we do?

We, who is we?

Is resonated with audiences that we were presenting a situation that could be real.

And that we all are a mixture of good and bad.

There is no one where we are always good, right, or happy.

We are far more conflicted than that.

I think it's tested the audience.

What a breaking bad has done is not only created a very compelling drama onscreen, but it has created conflict within the audience itself.

Here is more from bryan cranston who plays the anti- hero.

Five years, what surprises you most about walt?

That never gets old.

Let's get back to what hollywood called the antihero.

Characters you love to hate, the bad guys you almost want to win.

This antihero is not carry grant, jewel thief.

That is true.

He is not robin hood.

He is scarface as you have said.

He is closer to scarface.

I think walter white would be scared and if it repelled by scarface.

As we have seen a more scarface- like character in our earlier season who walter was not intimidated by but he dealt with using brains rather than brawn.

First of all, we were lucky that a wonderful show like the sopranos paved the way for antiheroes.

Breaking bad has just seven episodes left and if you need to catch up, no problem.

Network -- netflix has all five.

? we are 56 minutes past the hour which means bloomberg television is on the markets.

Let's get you caught up on where the markets are trading.

Stocks have been swinging between gains and losses.

Those in the red, the dow off by about 20. extending declines from last week.

The nasdaq gains about 0.2%. on to food related stocks.

David murdoch is raising his offer to go private.

The bid values the company at $1.3 billion.

The second game is tesla, issuing a noted that shares may drop under $100 each if it sees any education -- execution issues.

Elon musk may have issue with that.

Time for our options update.

The communications giant and retail giant, best buy, key on the markets.

I am joined now.

Let's start with cisco.

How are you playing it ahead of the release?

As i look at cisco, the charges bullish.

I was looking at the chart.

It is going up against this a level here.

I don't know if they can break through the 26.5 level.

It looks very strong on the chart.

Then i look at how the stock has performed on earnings.

Bullish trade, but not an aggressive bullish trade.

I can do this for about $.21. i am only risking $21 per one lot.

My reward is $79 so i'm getting a 4001 reward.

-- 4 to 1 reward.

Bearish options on cisco have now all into their cheapest level.

Why are all of these getting more bullish on cisco?

As it breaks through this level, it has more room to run to the upside.

We are down 10 points in the s&p 500 futures this morning.

Cisco looks very strong.

We can make a push through 28.5. i want to talk retail.

Best buy out with earnings next week.

They are up 163% so far this year with more than 40% of analysts having a buy on the stock.

How are you playing best buy?

I have to take the business model out.

This is a company i thought would go out of business in 2013. i think all of the business models are awful.

However, the chart looks great.

I watched unusual activity.

A big buyer, activity.

A trader lot -- what i want to

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