tv Lunch Money Bloomberg April 15, 2014 7:00pm-8:01pm EDT
>> welcome to "lunch money." i'm adam johnson. take a look at the many. in tech, you too could finally walk around with a pair of google glasses. you will get an inside look at aston martin's new five figure vehicle. newcomers are so smart, they can catch a crime before it happens. cal ripken has business advice for you. learning from years of playing baseball.
you think artificial meat sounds gross? not to bill gates. it's an opportunity. it is tax day in america. you have until midnight tonight to file your 2013 tax return. by the end of last week, the irs had received 100 million returns. about 75% of what it expects to receive in total. the average refund so far, about $2800. one of the biggest issues plaguing the irs, how do you reform the corporate tax structure? this thing is a mess. trillions of dollars said overseas, away from the irs. the former cbo director debated this very issue on street smart. >> we have the trifecta and problems. a corporate program that hurts our growth. it's time to look at our competitor nations and realize we are out of step with the 21st
century. others have moved away from taxing worldwide income. those who have a company making money in brazil pays tax in brazil and that's it. in the u.s., you pay a second layer of tax. companies don't want to do that. we need to fix that problem quick. >> where is the breakdown? we have the highest corporate taxes of any country in the world. why can't we get something done? >> first off, the biggest problem with our corporate tax code is that many large us-based multinational corporations are able to use a variety of accounting tricks to make it look like they may profit in tax havens like the cayman islands where they don't have to pay any taxes. ultimately, that burden gets
shouldered by average taxpayers and small business owners who foot the bill in the form of higher taxes and cuts to public programs. the answer is not to move to what is called a territorial system, where you say, any profits a multinational pretense to make no longer have to be taxed. that would only increase the incentive for companies to ship profits off shores. >> back to dan's point about the need for strong enforcement and good rules. within the system, you should not be picking winners and losers in either investment projects or hiring. this is not a matter of religion. this is, look around the world and see what has worked. all of our competitor countries have gone to this. finland and new zealand went the other direction and then changed back. get a lower rate -- five
percent, bring it back and put it to use for this economy. >> the former omb director joined us earlier on surveillance. he is the vice chairman of citigroup. he is also a bloomberg view columnist. i asked him about the number of tax loopholes available to corporations versus individuals. >> one loophole that you can take advantage of -- >> that's not going to get my rate to 12%. >> the only way to have that is to have the vast majority of your income in capital gains rather than regular income. that's why warren buffett's tax rate is so low. the vast majority of his income
is in tax preferred capital income rather than ordinary income. that is the big loophole. >> if you are not able to go the buffet route, what do average americans need to know? >> for higher income couples, the rates are higher. the expiration of the bush tax cuts and the affordable care act which brought the 3.8% of net investment income tax and higher medicaid taxes on wages -- it's a reaction of, wow, how could i owe that much? the rates are higher. >> middle income with collecting social security, that's as much a tax issue and a benefit issue. >> if you are both collecting social security and you have even a modest amount of other income, you will pay on 85% of your social security benefits. that is an example of where a
married couple will pay more tax because they are married than if both of them had remained single. a reason for senior citizens to not get married is they are both collecting social security and have modest amount of income. >> is that one of the unintended consequences of the tax code? >> is a marriage penalty. >> was it consciously written into the code? >> it's not meant to be a penalty but they don't want to reward people for filing jointly. it's really surprising how much there is in terms of a marriage penalty in different parts of the internal revenue code. >> it does not seem fair enough. with more people filing online, cyber criminals are busy trying to steal identities. they're trying to claim refunds. tom ridge weighed in on this issue. >> one of the biggest challenges in the united states, hackers are either employees or former employees.
one third of the incidents that have occurred in the private sector were either your employee, a vendor or a third party with access to your systems. a number of attacks depends on what their goals are. espionage, sabotage, theft -- that determines the nature of the attacker. >> we've seen robots lead to self driving cars. now they're adding drones and other stuff to that list. jaguar making a more affordable car. a sticky situation for the first lady. she had her base decorated with stickers.
is thanks to newly acquired -- what is google's plan? and >> google is now in the drone business. they are supposedly -- there is supposedly this effort to be good with it and spread internet access to folks around the world. this is when these drones give obscure places access to the internet get what we are seeing with google is, they are saying, they will give it to everyone we possibly can. these drones have a lot more applications than that. >> tell us a bit about where you this fits into google's strategy. you say giving people access to the internet all over the world. does it also means that google adoes it also means that google will be able to determine where you are, what you are doing and what ads they want to serve you? >> yes, there has been that
concern. now google has a number of ways to see where people are and see what people are doing. we don't know what all this means. there has been concern about those implications. google needs to find more folks to get on the web so they can show that more ads to grow their business. google was so big, it is part of the internet. it needs to find more people to an make the internet even him himhim him -- it needs to find more people to make the internet even bigger. this is part of the effort. >> google glass finally available to the public. but there is a catch. they are on sale for one day only. the $1500 glasses show web content on a tiny screen. they come in prescription and
there is even a sunglass version. there is a minimum and they stop selling tonight at midnight. google competitor yahoo! stepping up its own game. there are some new additions. olivia sterns with the latest, talking to trish regan. >> she's looking for the way forward. the next big thing. a big part of her turnaround strategy will be trying to find big hits with original content. first she brought in katie couric and had a couple of big hires from the new york times. in the past week, she announced she will bring in bobby brown. she tapped the editor of elle magazine to come in and anchor a fashion coverage for yahoo!. really building up the content vertical. with all of these key figures, they will be trying to build original video because that is where the growth is and that is where the money is. >> twitter headquarters today in san francisco -- union workers are protesting the $56 million of tax breaks received from the city. what is being called the twitter tax break.
>> not just twitter, but other tech companies as well that you getting this break. here's how it works -- companies are exempt from paying payroll taxes on new hires. it is great for companies that are looking to grow. it is a six-year window and an eight year time frame. anytime beginning april 2011, twitter moved in in 2012. it is an incentive for them to come to the midmarket area, which used to be a blighted area. it is a great deal for companies that are considering ipo. critics on the other hand say it is taking a big bite out of the city's budget. >> coming up in innovation, we will take a look at how smart cameras or securing our cities. even trying to prevent crimes. the discovery vision content vehicle.
the company unveiled its discovery vision concept vehicle on the deck of new york's retired aircraft carrier. cool part is not what's under the hood. it's what's on top. him as the transparent hood creates the illusion that you see nothing but the terrain in front of you. land rover has always been about. incredible all-terrain capability. >> we think the partnership is great because we share in the value of adventure and act oration -- exploration. that spaceship back there.
>> both vehicles can take people to where they would not go. land rover are the pioneers on land like be high in years of space. that is the beginning of a partnership. >> that is mind-boggling. aston martin also mind-boggling. known for its exclusive, expensive cars. now it is lowering the entry point. trying to compete with porsche and jaguar. matt miller introduces us to the sub $100,000 aston martin. >> what we have chosen to do with this cars offer something which is more focused and specification for the enthusiast driver. very much on the motorsport heritage. very distinctive from the exterior. equally important, underneath the bonnet here.
361 torque. 190 miles an hour. a car that is very functional to be driven on the road. one cool thing on the scar that will surprise a lot of people is, this car is priced at $99,000. most people might expect aston martins to be higher than that. >> that is great. i think the most important thing about it is you can get in a stick shift. you see so many of the high-end sports car manufacturers going on to automatic your boxes. what drives you to keep it more traditional? >> demand. one of the things we recognize is this is very much a driver's car. it is why it is so successful in the motorsports environment. 30% of our cars in north america are stick shift.
that is why this car comes as a standard manual. you also have the automatic as well. for those customers who want to try something different. >> how much do expect to sell this? i have read sales targets of double the sales by 2016. you want a boost production. >> we want to grow production and sales. this car has the opportunity to do so. austin martin is very exclusive. last year, we sold 4000 cars. we see an advantage in this market. 30% in terms of our sales -- we would like to sell a few more cars. this is an opportunity to broaden our appeal with a few more customers. >> you have the agreement with daimler bens. they will supply engines and
electronics. when will we see that? >> it gives us the opportunity to develop custom aston martin products for the future. the v-8 engines, powertrains, electronics will come as part of our overall development in terms of the aston portfolio. we are investing about $500 million pounds -- $800 million in new products over the course of the next five years. very exciting times for us. we are looking forward to seeing the new product in the next 3-5 years. >> you continue to compete with the biggest brands as well. most of them are now owned by or working with huge, major carmakers. how difficult is it to stay competitive and stay independent? >> we have a unique position.
we are well capitalized and we have opportunity to react very quickly to the market. for us, we're very confident where we are today and what we are doing. >> it's hard to juxtapose the concept of honing it for the track, building up the horsepower, building up the torque and bringing the price down. how do you bring those together? >> we are looking to operate a distinctive package here that will appeal to a broader market. we realize that competitive segment has grown exponentially over the course of the last few years. we believe we have a compelling proposition. >> from high-tech cars to high-tech dishes. how one astrophysicist is trying to stop malaria. that is next in innovation. look at this. a record-setting umbrella dance
bloomberg television. we are fully digital. online, mobile, apple tv, amazon fire tv. the video is the story. ukraine launches an antiterrorist operation against pro-russian activists in the eastern region. the upends of coming as officials say element of russian forces were identified among pro-russian militants.
soldiers and volunteers are digging through rubble in search of victims from a massive fire in chile. the flames burned for more than two days and destroyed 2500 homes. officials say 15 people were killed. the city is under military rule while the cleanup effort goes on. events in boston today to mark the first anniversary of the boston marathon bombings. family members of the first responders and victims are holding events throughout the day. a moment of silence observed at 2:49 this afternoon. the blast killed three people and injured others. in the aftermath of the bombing, the city beefed up its security with artificial intelligence. a system called eyesight. the software is already in place in chicago, san francisco and washington. the company behind it claims it is so effective, it can sometimes detect crime before it happens.
i went to their houston headquarters to learn more. >> april 15th, 20. boston is hit by not one, but two bombs during the marathon. within weeks of the attack, boston police called the systems asking about a new type of crime-fighting technology. >> we invented and developed an advanced artificial intelligence video surveillance software platform. >> he's a former secret service agent and now the president of brs. the company's technology, called eyesight, can analyze camera feeds and send an alert when it spots something out of the ordinary. >> you can find things you never thought to look for. you never thought of somebody driving a car backwards up to the entrance way. it is different than what
usually sees. it tells itself what to look for. >> we went to see how it works at the company headquarters in houston. let's put this to the test. >> we have a camera set up in the hallway behind you. you can walk up like a normal guy in the office. >> i walk up, hang out, nothing abnormal here. how do i set this thing off? >> steel the printer. >> it is working with cities and organizers of the world cup and amtrak trying to anticipate attacks before they happen. >> we can see people doing something poking around where you shouldn't be, looking at the back and he does to buildings. >> it is like minority report. >> that is science fiction. we are recognizing a precursor pattern that may be associated with the crime. >> with more intelligent technology comes privacy concerns. they have been criticized as
being more big brother than a crime preventer. >> it is not our technology approach to collect any personally identifiable information that is not what our customers are using when they deploy our software. >> it has expanded tremendously since 9/11. $500 billion spent on camera security systems to seek out dangers. it is clear the cameras are here to stay. something much less. and yet, far more deadly than terrorism. mosquitoes spreading malaria. a columbia university physicist has a new way to fight them. check this out. >> they're the most deadly creatures known to man. we're talking about the common mosquito. he is a hungarian astrophysicist by training. today, he is less interested in deep space. >> we have a lot of them in
there. >> and more focused on shallow water where he briefed thousands of mosquitoes. >> you're an astrophysicist running a mosquito farm. >> after a close friend contracted malaria on a trip to uganda, he looked at how he could use his expertise to help eradicate the disease. one that killed half a million people in 2012 alone. >> the behavior had another mosquito -- we can actually -- >> his team found their navigation systems were severely impaired by infrared lights. he was able to turn the insects away by creating an invisible infrared wall. he then got a million-dollar grant from the bill and melinda gates foundation. the money has allowed him to visit tanzania to see how the technology might work in the field.
>> they're coming out of there? >> is designed could work with a solar powered come infrared mosquito net. harmless to humans, but disorienting to mosquitoes. several challenges still remain. if that is not stopping them. >> i have four children. maybe two of them will die for mosquitoes. i decided i should use my expertise to do something practical. something useful as a service to the community. >> how is this for innovation? meat made from vegetables. sound strange? not to bill gates. the company is investing in. coming up in eads. in sports, why the tour de france is not french this year. we speak to the director of the famous race, coming up. ♪ >> this is "lunch money" on
bloomberg television. also streaming live everywhere. online, on your phone, tablet, even apple tv and now amazon fire tv. in sports, you have to be tough. mentally, physically -- cal ripken junior was known as the iron man. now, he is bringing that famous persistence to his new company. >> you wake up, come out and nobody would be there. just getting things ready. retirement is funny.
when you retire from baseball at 41, people thought i would stay in my pajamas and play golf. i was a little timid and had that when it first came out of baseball. i have learned that you have to stay important -- you vision is what drives the company. if you want to build fenway, you build it for a long time. we started designing complexes. we had specific ideas. many people would call and ask us for help. in order to have a really good team to win at the highest level, it is paramount to be irreplaceable.
you have to know the managers and the rest of the team. it's always an opportunity to learn. he learned from that and then apply to the next age to become a better person. there's nothing like applying it to something you love. that's what drives me. it's what makes me come to the ballpark every day with enthusiasm. it's the sense of worth that i'm looking for. >> victor cruz -- here are his rules for brand building. >> i would like to think of myself as a brand first. which embodies the athlete which embodies everything else.
i like to look at myself as a walking brand. i'm so fortunate to grow up five miles from giants stadium. i love everything new york entails. the grid, the culture is perfect for my brand. the one person i would want to emulate my brand would be derek jeter. he has been able to stay in new york and do things and people love him here. i'm never the guy that would say no. having jay-z there as someone that i can pick up the phone and shoot a text message to and talk to, that is always good. they do a good job of knowing you as a person.
growing up, everything was nike. if you didn't have a pair of nike's, you weren't the cool guy on the block. nike was always a part of my culture. it was embedded in me. it naturally became part of my brand. they asked me to do this all for them. it is cool. i created this brand for myself to walk into the grocery store and they are like, can you do the dance for me? right here, right now? it was something that was preplanned but i did not think it would go this far. >> i can do it. the world's most famous cycling races taking place in a few months. it is the tour de france. this year, it is the tour de something else. >> this will be the 101st tour.
this year, it is beginning right here in the united kingdom. why? that is a question we can put to the director of the tour de france to joins us right now. thanks for being here. you are jumping on the back of the success that cycling had here with the olympics? >> it was unforgettable. it was a huge crowd. we were sure we would be back full beers after. we decided we had to come back as soon as possible and we are here in 2014. >> how is the business of the tour de france? particularly after the departure of lance armstrong. where do things stand? >> the tour is very different from all the other races. we have 250 bids on the tour.
it is really different. not only a sport. >> is there more money in professional cycling now or less since armstrong left? >> i have no answer in terms of cycling. it is difficult. >> ethical issues aside, do you miss lance armstrong and the star factor that he brought to cycling? >> armstrong was a special character. he will stay this character. we love to look at the future. that is most important. cycling is very tough. i'm very confident for the
into high-tech and home cooking, we have your next must-have. this thing will cost you. >> i am the manager for -- it is something -- we are paying to be something beautiful. at the same time, something functional. you can have multiple things. a lot of things together. you have a washing machine -- this is the kitchen. at the heart of the house.
the life comes from the kitchen. in italian culture, the mother is cooking for the children. it is where you grow as a family. the range of the price is between $45,000-$60,000. >> you need innovative food. bill gates is an investor. >> the texture and taste of beef and chicken and supplies it to consumers in all plant-based protein. there are 4 drivers. the first is human health. diabetes, heart disease or cancer. the second is climate change where scientists have attributed
51% of greenhouse gases to livestock. then you look at natural resources. animal welfare, 66 billion animals per year are slaughtered. consumers are beginning to get more and more aware of these factors. >> you are describing this as plant-based and why not just eat plants and get your protein from yogurt and eggs? >> kale doesn't taste like a cheeseburger. >> i love this subject. meat is so important to us and who we are as people. it is why we are the way we are. i think the thought that we are going to go back to just eating plants is not the right one. the way to think about it is, meat is made up of five things. protein, fat, water and trace minerals and trace carbohydrates. all of those things are available in the plant kingdom. >> in case you missed it, here is this morning's lunar eclipse. that is quite a view. ♪ >> we are coming up on 56 past
day. various things pushing and pulling things around. tech stocks declining in the middle of the day. if you take a look at what happened in the treasury markets, a little volatility. initially, a lot of buying of treasuries. on the shorter end of the. the 10-year note finishing at two point 63% in terms of yield. a number of different elements that move the market. consumer -- data on consumer inflation. adam johnson takes a closer look. >> consumer prices ticked up higher, but don't excel -- celebrate just yet. let's show you where we are on consumer price index is. you see that tiny move we got here today? that is where we are. the fed's target is at two percent.
you can see what has been happening generally. we have been trending lower. you actually want a bit of inflation because it says that there is pricing power. you need to see more of that in order to feel like there is growth in the economy. the u.s. is not alone in its situation right now. from the u k, lowest inflation in 4.5 years. in japan, population contracts for the third year in a row. in china, total lending falls 19%. that's a bit of a concern. low growth -- you will have lower rates for a long time. if you are a retiree, that is a problem. it is difficult to find income. today, we have five ideas for you. here's where you go to find income in a low rate environment. dividend stocks -- they hold at 3.3%. up three percent. all five of these income related
etf's are up this year. high-yield bonds, hyg, we talk about that a lot. very income oriented type companies there. mlp is the ticker. the key is, they all have yields. they all have returns. rates might be staying lower for longer because of low inflation around. you can still find income. >> thanks so much, adam. a is the manager and -- well-known quantum shop. quantitative research. trades on algorithms. he had advice for long-term investors. >> two of the biggest things that have worked -- value