>> this is taking stock, for monday may the 12th. today's theme is the sky is the limit. see the ceo of audit the airlines -- odyssey airlines. and it is monday, some of producers will once again try to stop me with tonight's mystery

guest. all that and more over the next hour. >> another trading day, another record in u.s. stocks. be dow jones industrial climbing 200 point. in the meantime the s&p 500 rose rising above record from april 2. wilshire bands -- health hillshire planning to buy pinnacle fou. is a good time to check in on who is winning the cloud wars. a recent international data corporation says that bu ibm, cisco, hp and

amazon.t over what is working, what is not working? how does security factor in? johnson, andory also joining us is the president .nd chief executive of bitglass to have youreat here. what is the challenge that the club has when it comes to security? data goes fromen one company to lots of servers all over the place it opens up issues in security and reassembling the data in usable form. security is tantamount to the success of the cloud. is that with so

many competitors in this arena, where the hardware is barely differentiated there is a tremendous price pressure. amazon has dropped their prices over two dozen times, and it makes it hard to add extra services like security. >> i am wondering if you can come in on this topic and tell us what should a company such as rackspace do? >> i do think the security is a big aspect of differentiation. you saw some of that coming through with the ibm leave. d. rackspace would favor more security, and get more traction with the customers. >> are there specific security

flaws that currently exist using loud technology to store data? what we're saying is that security is a concern that has gone from 20% of customers to 40% of customers worrying about it. the reality is that the cloud vendors can secure their infrastructure, but what they have a harder time doing a securing the data of the customers. focusing on data would be helpful. is the slowing the adoption of the cloud services by large enterprises? >> definitely. we have seen about 70% of enterprises, where their employees have adopted cloud. it is not as large as one might think. i am wondering if you can talk about the competition that rackspace finds not only among

the companies that provide cloud services, but the competition to do things without using the cloud at all. >> fundamentally, there is a notion of public and private cloud. the idea that the services but aloud would offer -- that cloud would offer cap if you're working in or out of the office, or using multiple offices, some companies have attacked the problem of security by having cloudlike offerings where the information is up on servers or replicated on many servers around the world will but they are controlled by a company. it is their own data center, or they are renting dedicated hardware. that is typically the distinguishing between public and a private cloud. ebay might have information sitting right next to other companies on a public lot, but a dedicated machine would be just be one company.

>> is there a lot of rice cutting that is going on in the industry to a market share? >> yes. you will see there is a price war between those who are providing public loud services oudloud services -- cl; services. this apply to small and large companies because of the price goes down what is the difference between having your cloud service from ibm or from another company? >> i think one of the side effects of cloud is that the switching costs to switch in or very low but the switching cost to switch out is very hard because once the applications are in their it is hard to get out. cloud tends to be a winner take most as opposed to an on premise installation where the market is more fragmented. they can stomach more losses initially with regard to winning

market share. >> thank you very much. nat kausik joining us from bitglass in san francisco the and cory johnson, our bloomberg west editor-at-large. at&t is said to be an advance -- in advanced talks to acquire directv. what we know so far? >> we know that these two companies have been talking for at least a few weeks now on a deal, and are getting closer from what we have heard today. at&t will pay about $100 per share for direct tv. that would be about a $50 billion deal for one of the biggest deals we have seen in a long time. coming on the heels of the comcast time warner cable acquisition which was about fighter -- $45 billion. it would put the largest u.s. satellite tv provider operating as a unit of at&t. ceoave heard that direct tv

would retire after 2015, after a deal is completed. he is over 60 years old, and has run directv for a few years. he with the outside, and other people at directv would continue to run the company as a division of at&t. >> were they not in the program of television satellite business at one time? >> it comes full circle for at&t. direct tv has had a few different owners, so this is getting them back to a stage where they become a division of a larger company, which they were about 10 or 15 years ago. they have operated as different elements, and spun out and a battle between rupert murdoch and john malone to be an independent company which they have operated, competing with dish network, the other large satellite tv provider in the company. -- in this country. one person i spoke to that was

close to the matter speculated that what is charlie ergen going to do at this stage because charlie's company had been rumored to want to merge with directv also. and they came out last week and said they were too expensive. together,al comes there are two options for dish that go away. we will see what happens to the shares tomorrow when the investors digest the news. >> what does this mean for at&t? why would they want this business? >> directv has a few things that directv -- at&t is interested in. they really want to bundle together mobile video with their current wireless product. he do this to some degree, but they have not really figured out yet how to do a quad play which is wireless service in addition to their home broadband, home television, and home phone.

buying directv would allow them to have the first real quad play opportunity that we have seen in the united dates. -- united states. they would get significant growth in latin america, and that is where most of the growth comes from these days for directv because u.s. paid tv penetration has basically reached a plateau because it's industry has matured. >> thank you very much. shares of directv are up about 5.25%.i .25% -- dr. dre claims he will be the first billionaire in hip-hop history. ♪

>> this is taking stock on bloomberg. while the technology and the music world is waiting confirmation that apple is really going to purchase beats electronics, it did not stop the bloomberg billionaires team from taking a look at his claim on facebook that he could be the first billion air to come out of the hip-hop music industry. beats withounded jimmy iovien. here to tell us what we found out is peter newcomb. stakes, and what did you find out?

>> jimmy has more of a stake than dr. dre. a will make jimmy billionaire, dr. dre will fall in little bit short. we should not fill story about hi -- feel sorry for him though, because it will be $640 million. >> if it is a stock deal, that would lose all of the taxes involved so that will be a lot more. inhe has a storied history the music industry, what is his status in those whole billionaires world? >> he made a lot of money. recordsnded interscope who is the heir to the marshall fields fortune. rottedunded that and back at a discount when warner had a big piece of it.

they bought it at a discount, sold it, and made a lot of money. this guide has made a pile of money and cover the ration and royalties. he has been producing engineering record since the 70's. . of the recordsot that jimmy has made. what about dr. dre? lost a loss, he was suing trying to collect some old royalties he felt he was owed. he had about 150 million you -- $150 million. >> is there any idea of where these -- who they would displace in the billionaire ranking? >> it is hard to say.

he is not the first music mogul to become a billionaire. david took that path a long time ago. guy. a mere one billion --indeed aired thank you indeed. thank you. joining me now from los angeles is alex rosson, the chief executive of audeze, they make for thele headphones high-end market. could you describe four people what makes you different from almost every other headphone out there? >> thank you for having me on the show. what differentiate just from most manufacturers on the market is that we use a thin film

suspended between magnetic structures. that thin film causes vibration which causes sound. it is a very accurate had phone, barry has vodafone -- very fast headphone, and the least amount of distortion on the market. >> you have a lot of experience when it comes to sound. tell us about the music you have worked on, and what the connections you have our. line ofe from a cinematographers. i went right into the recording tudio right after graduation. i became one of the pioneers of digital cinema mastering and distribution, working on thousands of movies. that, i found a need to create some headphones that we

could utilize within our facilities, and from there it kind of just little up. -- blew up. andncouraged determination passion for excellence. we became alone would -- we became well-known known in the headphone community, and we made a name. >> cap us an idea of the range of rights -- give us a range of the price. towe range from about $950 $2000. that may seem outrageous for many people, but for those who are perfectionists or in the pursuit for perfection as far as experiencing and enjoying music, we provide our customers something that would be the equivalent of $25,000 stereo system and up. we have had people say and

$80,000 stereo system, but if you are an audiophile, it is a bargain. >> thank you. is the chief executive of audeze. coming up, i will introduce you to odyssey airlines, which is raising funds through crowd funding. ♪

>> this is taking stock on bloomberg. ayssey airlines is taking different one way to launch itself in 2016. the start up is using crowd funding to raise money for its planned debut at the london city airport. the to tell us more about approach is their chief

executive adam scott. thank you for being here. i know you're on a round the world trip right now, tell us about the plan for you odyssey airlines. own experiences traveling, through the big airports and the hub airports, being able to identify an aircraft -- 100.e cs takent we have done is aircraft, and optimized aircraft, and take advantage of its performance capabilities and use it at airports that are restrictive airports in terms of length of the runway, noise regulation, etc.. we're going to use this aircraft to its full capacity, and that offers us the ability to open up new routes out of london city. roughly an eight hour flight. we will be able to fly transatlantic, to new york as our first destination, and also

elsewhere in the u.s. northeast and canada. and then possibly into the middle east. >> year raised about $7 million so far? of 5 have raised in excess million pounds, and we have recently launched an equity crowd funding platform with a u.k. company called crowd cube. we're looking to raise up to 5 million pounds on this route. >> the idea is to equip the cs 42 --rcraft with fully >> we are putting the number at 40 fully flat beds. this is a premier product. we will presumption ourselves in the business class segment -- position ourselves into the business class segment, but it will be more like a private jet. we will have 40 fully flat is

this class seats that will have the longest beds in the market today. we hope to really capture the imagination of the traveling public by actually having something that is very close to a private jet. >> what makes it possible for you to believe that you are going to succeed where only british airways offers this all business class configuration and they are flying airbus equipment top toey have to s refuel? >> there have been others that have come and gone before us, but i guess there is a number of reasons. there was timing, there was precrisis oil spiking. for us what they did not have access to is the right aircraft. we have the right aircraft at the right airports. this is the first time that an aircraft is going to be able to fly that kind of range out of london city.

to fly toocuses similarly convenient and essential airports. >> thank you so much. best of luck. coming up next, the hottest new fruit craze in york -- food craze in new york. ♪

this is "taking stock" on bloomberg. i am pimm fox. the european union is heading rusher with more sanctions. the eu foreign ministers meeting in brussels added 13 people to the list of individuals on travel bans.

they said they will send a bill for june, and if it is not paid by june 2 they will not receive any russian gas. bonds will rally. hold theplans to are folded, i'm not hedge it -- their portfolio, not hedge it. >> new york's hottest new food craze is a bagel. people are lining up around the block at black seed in manhattan. the new story is featured in the bloomberg businessweek. , noahre the cofounders bernamoff and matt kliegman. how did you decide that the

bagel was the new food craze? >> we reported and found that other people had decided. it is because people are lining up for an hour outside their bagel store. bagel,s a special hybrid montréal and new york together, and it is the latest food craze. >> hybrid hagel. -- bagel. what makes you think that a bagel that has components from montréal is something that people want? >> i think that the new york bagel is very special come a little bit. montréal bagels have not evolved very much in a kind of delicious way. they're baked in a wood burning oven, and anything with wood makes things taste better. all are smaller, we have

unfortunately the victim to an y bagel., very dough with ay are boiled little bit of honey in the water, which adds a little bit of sweetness. about how young have not really involved. your keeping an old world tradition alive. what are the steps to making a great bagel? >> you start by making a great dough, and that is made with old so you have agh, depth of flavor. the next step is to roll the dough by hand, singer not shaping by throwing it into a big machine and now allowing it to generically shape. is an old in honey method because honey is , and it is more

costly on our end, /. . >> ms said there are -- emma said there are lines outside your shop. how many bagels do you sell on a regular basis? , we'rehe weekends selling upwards of 2000 bagels a day. >> 2000 a day. >> but you cap it. one person can only buy a certain amount. >> it depends on the time of day and are inventory. by making bagels the way we do we are obviously limiting our production about because we do make the bagels one by one. >> what about the different types of bagels? is there a purist involved in this? they have all kinds of different toppings now. >> we have seen a couple of disappointed customers looking for seven raisin.

-- cinnamon raisin. we do not have that. poppy, sesame, everything, salt, and will degrade -- multigrade. >> do you have an expansion coming? >> pumpernickel. we never thought we would say that. >> they are much fancier than normal. -- have specialized topics toppings. more have been a bit thoughtful, sprouts, watermelon radish. >> where does this come from? do you have meetings to decide, or what prompt the selection? >> we like to eat and to cook food ourselves. >> how was this relationship created? restaurant, so we're

basically neighbors. neighbors became really good friends, and about a year and a half ago we were hanging out and lamentingout bagels, the reality of the bagel in new york and thought perhaps there was an opportunity for us to do something about it together. >> you were commiserating. it was the aftermath of hurricane sandy. >> both of us have business and we have seen quite a bit of damage. one of the casualties of my bakery -- was my bakery and redhook. that ruined his breakfast routine as well as mine, and together we decided that perhaps

a bangle industry -- legal industry would be the right move. reactionou had any from the purist and marjorie all -- purists in montréal? cannotwe have people who resist comparing what they are used to eating, but there is a larger contingent of contagion -- canadians who are to see a cultural product traveled to new york. >> do you have a favorite? >> i love everything and salt. >> she has arty started putting in her order -- already started putting in her order. >> thank you for joining me.

coming on, you will need a former wall street investment banker who left her high-paying job for a bakery. we will give you detailed. -- all the details. ♪

>> some of the best and brightest people on wall street are bailing out of some of their high-paying jobs and starting their own businesses. one of them, umber ahmad. she used to work at morgan stanley, goldman sachs, and now she is the founder and chef at mah-ze-dahr bakery. we go from bagels to baked goods. how did you make the transition from wall street to starting your own business? >> i did not leave wall street.

i started a very local and luxury brand. all of the skills i had is a banker, i transitioned into what i wanted to do on my own. >> were you scared? >> no. i wanted to face the fear, and go on it head on. goes away pretty quickly. >> what characterizes mah-ze-dahr bakery? is ae word mah-ze-dahr word from the urdu language. these the word to describe magic or essence of something that gives it its life. u.k. star pastry and there will be something special about it, and it will be magic. it brings you back again and again. that is the mah-ze-dahr. our recipes come from all over

the world, and most of things i haveof them are things created with mike scioscia. we like to think about things as an elevated quiet lechery that you have every day. >> there are a lot of businesses that you could have gone into as a result of your previous experience. what is it about making that -- making that attracted you -- bak i that attracted youn? >> it is the most intimate thing you can do for someone, to make them food. it is very soulful, and basic ,. . ds and build them overseas. we still do that, where we look with luxury food brands, luxury designers and clothing consumer goods and take them overseas to build those brands agreed to awareness around them. that's how i met stumbling new licio. cole a

develop the next phase of lecture on food, but when mad because i helped them overseas. it was fortuitous and very natural. >> you use the word luxury. if that about the price, or is it about the experience? >> the experience. if you ask anyone today what they want more of, some people would say handbags or homes or watches or cars, but most everybody wants more time. time is the ultimate luxury, and is the one thing you do not have -- enough of. taking time to eat is always a luxury. >> tell us some of your specialties. >> one of the things i'm particularly proud of is a look that look -- is a food that looks like it takes.

our signature dish is a brown has saltede, that caramel sauce, and toasted the cons. it is the perfect combination of sweet, salty, chewy, crunchy, and is this beautiful bite. >> this is something that you can get online? >> it is. we can sell all of them online, so we are aware of trying to make our food accessible to people. luxury does not mean inaccessible. you can order it anywhere them and we deliver and ship throughout the united states. we deliver locally in new york city, and we also sell through sandwich shops. we are very excited. is launching their first class experience, and we're

going to be the exclusive pastry. retailot having a little location that cost a lot per square what figure into the pricing? >> it does now, but we're working into a retail location. food is something that you have to touch and feel and smell. firstl be opening our location in the west village in the summer. >> seven to 10 locations overall. what about going overseas? you are currently expert at helping brands moved from the united states overseas, what about your brand? fore have partners lined up london and dubai, but we need to walk before we can run. we need to open in the states and when we do that we can be overseas. >> what about raising money? >> and has been a little bit of a challenge. isot of early stage capital

interested in tech businesses. we have an online component, but we are actual product. thate a cash business generate revenue unlike a lot of other startups, so we are open to a couple more investors and we hope will to be able to close soon. >> thank you for joining us. the founder and the chef at mah-ze-dahr bakery. it is time for my clue number three. ♪

>> it is mr. guest monday. dea who my guest is. but we have a few clues.

let's bring out our mystery guest. thank you for being here. a mentions you are restaurant. do you have more than one location? >> yes. >> do you have a location in new york? >> yes. >> do you serve food as well as champagne? >> yes. >> champagne brunch. i known for food or champagne? >> brunch. sundae, doesn't have ice cream? >> it does. >> gold flakes? >> it does. >> are you an italian restaurant? >> no.

>> are you a french restaurant? >> yes. >> are you in the past in district -- meatpacking district? >> yes. >> bagatelle? >> yes. >> you are not the chef. you are one of the co-owners. >> yes. >> let me think. emi?you r >> yes. not bad. >> what does bagatelle mean? >> the meaning we have chosen prospective the 18th century, the light courtship of a woman. it is very flirtatious, very playful, and it is all about the female. e. tell us about this sunda

aboutwere brainstorming with my director of operations, my partner, and our shepherd and we were wondering what we could do that with a bit of fun and extragavant. ee already had this mega sunda for $50. so we said why don't we play on that? we are known for selling champagne, so we said what are ?e known for selling m perigon. women love jewelry, so we tried to think of a real cool rand from paris, and

we picked one that was one of the oldest stores. thateated the mega sundae comes with a ring, for bracelets, and see you can come to bagatelle for your haveersary, and we a solution. >> we thought it was going to be a fluke and a joke, so we launched on may 1 and we have sold five. >> since the beginning of may? >> yes. >> tell us more. >> we have six restaurants on four continents. angeles, são paulo, los , and we also have one in dubai. we have two more that are building right now. monaco is being built and will open in may 2015.

we just signed our second location in dubai but that we are very excited about. >> you do not do this all alone. you have to form some kind of alliance with people and organizations that can help you to the next level? >> in some markets, like brazil, we have a group of local operators that know the local market and can operate to our standards. and we license our brand and we assist them on a daily basis. they do a fantastic job. run the other restaurants and we have some investors, and others we don't. here in the united states we have a joint venture in new york and los angeles. we also expand fast. >> when people want it, they

want it. >> the restaurant industry became global. >> it has become entertainment. >> you are hot right now, and i do not know i will be hot in a month. i've to maintain our brains at a level that attracts our customers, whether they are travel.rs, or they just if they know they can find this they will get a standard recognition and they will be welcomed properly. we want to capitalize on the relationship they have today to take your brand abroad. >> if you order, what will you select? >> if there are sell it or are tonight are tarp -- our salad or our tuna tartar. if i'm with a friend i will order the truffle roasted

chicken. >> thank you for taking stock with me. ♪

>> live from pier three in san welcome to "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i am emily chang. richard branson made his initial fortune in music muslim dimwitted things about apple hill to buy beats, and when virgin galactic will be ready for space travel. fcc chairman is revising his plan to offer paid intern