elections. arecook observes showares on sale. he purchases a $14 billion in apple stock. money doing xl spreadsheets. the morning, everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. it is friday, february 7. i'm tom keene. join me, scarlet fu, cristina alesci. a lot going on. >> we're going to start overnight because china resumes trading after five days of being awful for the lunar new year, so china back in the markets. 8:30 a.m. of course we have jobs report, complicated report there, we will have more on that in the hour. other events, earnings a bit of a snoozer, the only thing we will know is cigna. also lg launches its new curved smartphone. >> that is the new thing to have a curved phone? >> i don't know, the kind of all

because dennett nokia have a banana phone that was a little curved -- because didn't nokia have the banana phone that was curved? willdon't know, hopefully be different. the olympics will air on tape delay. we have figure skating, ski jump and speedskating. >> we go to the major question of the day. it is not jobs, apple's share buyback, are we going to spoil? do we have a company policy? are we going to be breathless at 1:00 p.m. and say scarlet fu won the luge tournament? >> if you want to avoid it, you now know how to do it. >> big debate 10 years ago, now it is not, twitter and all that. on's not have any suspense our data check. it is a pre-jobs data check which means it is dead. 10 year yield goes to $260 to $270 in a matter of days. $2.60 to $2.70.

let's go onto currency markets. the vix, 21 was the worst, we have a more complacent market, 17.23, yen backs up, weaker yen, $102.10. stronger,peso is down to $7.88. papers andthe friday the web this morning, here is scarlet fu with our front page. >> first omni from page, the government wins again in its insider trading probe against former sac capital fundraiser matthew martoma. $275 million in profits. he accused and now -- he was accusing now convicted to trade

shares. it is the seventh of action in conviction ineven six years. >> he is not part of this, but things change, cristina alesci, for mr. cohen this morning. cave, heindie martoma said all along he is not going to cooperate with the government, but once you happy conviction and once you -- have the conviction once you have the case, changes the case. >> he faces up to 20 years in prison, so we will see how that plays out. >> our second front-page story. earlier this week it was twitter, now it is linkedin. shares of linkedin down about 8%. first quarter missed analysts' estimates. net income was down 67% in the fourth quarter. let's twitter user growth.

>> all the user growth. it is an out of body experience. buy onn "maintaining strong fourth-quarter results, promising outlook, that is totally different from what you just said." >> that is totally, you're absolutely right about that, this is twitter as well. >> but all three revenue segments that linkedin has were down, so it is not just about advertising here, it is about be subscription based that the company has and the reason why investors like the stop stop because it has a subscription base, revenue base. >> i would suggest some of the sales side disagrees with the media spend. >> whether they should be need sure mass-market, depends on their valuation. >> valuations are way ahead of what anybody insecurities analysis would put -- >> speaking of valuations, a lot

people say apple has a very low valuation it should be higher. carl icahn among them. apple has bought back $14 billion of its own shares. a couple cups of coffee. that comes from ceo tim cook who actually spoke to the "wall street journal." shares on about 8.5%, more than double the drop in the s&p 500. apple gave a very fairly disappointing outlook. they had a record number of iphone sales but is still missed analysts' estimates and the stock has been dropping. >> buyback is something companies always do. old, mature companies in dubai back. >> this is a debate about whether it is a growth company or your definition of an old company. all the pros i talked to say it is just migrating to be a blue- chip company. this is up $159 billion, 8.8% of cash and cash equivalent, and i was in the apple store a few days ago making a family acquisition and guess what?

the store was busy. >> the store is always busy -- that is not the issue. >> this is the difference between what tim cook is saying and doing. he is saying growth, but they are acting like a mature company. >> we have the right person to talk about this, directly into your lousy retirement plan as you look at it this february we can, jonathan golovin the chief u.s. marketing -- jonathan jonathan -- jonathan golub is the chief u.s. marketing strategist at rbc. ability is tonse grow the company, yes, but they have more cash than they need, give it back. if they have been successful in generating a boatload of cash, it is not a negative thing. >> wait, wait, you can do other things with that catch. you can make acquisitions. look at google -- >> by giving the catch back to

you, they're giving you the opportunity to choose what oppositions -- acquisitions you want to do. ultimately it is the shareholders' capital. >> modern security analysis -- what is the percentage of people that say apple and others are doing the right thing and what are percentage of people who would agree with what cristina is talking about where they should be deploying it back into the business? organically,ow launch new products, which is really hard to continue to innovate, and there is a reason why they have more cash than other companies. but doing acquisitions, which has not really been their growth strategy, as a whole different story. >> i would suggest be vast majority of people in the modern days, if you have that extra cash, give it back to shareholders or you will lose your job. >> what does it say about our economy that someone will celebrate a company that cannot find anything better to do with their cash acceptor started to shareholders? >> we have an economy that is not growing fast enough to give

investor confidence -- business is low.nt confidence we need a faster growing economy to get that back. 3%what about this 2% to range of growth? >> correct. it is at the same at rbc, we moved toward that toward the latter part of the year, you will see confidence grow. if not, you will not see them in a and growth. about thistalked turning economy. how do you fold that into being in the stock market? >> they are very different drivers. for example, this quarter, it looks like we will have almost 10% eps growth, but about two thirds of that is improving margins. the company in a slower growth environment is doing a really a job of managing their business. >> to circle back to mr. cook, are they managing their business with fewer shares so the share

buyback salon right back into a secured sense of good news? >> some of it. if you look at a 10% earnings of the 10% is1% buybacks, 6% is squeezing more. >> and somehow managing the business one way that companies are managing their businesses is firing employees can reduce cost, right? you have a pretty positive outlook on the u.s. economy but is stillconsumer not spending as much as they would like to be spending or as much as economists would like them to be spending. why is it looking at all the superficial data and not drilling down to look at labor force participation, consumer spending, all of these other things i look quite negative? employment to at population, there has been no improvement whatsoever in the entire recovery. the consumer discretionary sector at the same time is the best performing sector, so why?

the highest consumer is doing really well, and they are not the whole story, but we are spending more money on our data plans, on our cell phones, on our flatscreen tvs and -- >> our curve phones. >> and they have durables, autos are doing well, homebuilders are doing well, in the last six months, in the last three to five years. there are a lot of good stories even in a weaker economy. >> we will talk to jon golub through the hour. again, bloomberg television and bloomberg radio, our full coverage of the jobs report at 8:30 this morning. here is company news. pre-k's we start with ford. oppose a trade agreement. the automaker says it will not support the transpacific partnership with the cop does not limit currency mean oblation. a 42nd of singled out japan where toyota has seen a surge in profits thanks to the weak yen.

boeing may be in line for an order with executive error ways. to -- with 777x british airways. eings i.e. be -- ey the 777x. hired goldman sachs was up ibm could also look for partners in the business. the sale would mark the biggest strategy shift at ibm in 20 years. it recently sold one of its server business is to look noble. tom? here.h more to talk about this is ot, february 7, they will celebrate athletics until february 23. 88 knowshon -- 88 nations. the java landscape known as the black sea. i am looking for snow, scarlet. your twitter question of the day -- what is your favorite olympics

storyline? do that here @bsurveillance. ♪

>> coming up on bloomberg " atvision, "in the loop 9:00 a.m. today, labor secretary thomas perez. whether, benchmark revisions, we got the fact that unemployment benefits have laps and have not been renewed, all of that surely going to make for a complex picture. we will see what tom perez has to say at 9:00 today. >> the secretary of labor no doubt with administrations. those important revisions from the ugly report of 30 days ago. this is "bloomberg surveillance." i am tom keene

pulls up with me, scarlet fu and cristina alesci. we have to look to washington. republicans are in search of a planet they consider the debt ceiling. speaker boehner will take the let's goo consider -- religious on you -- peter and paul as an example. increasing retired military benefits. peter, here is peter cook, our chief washington correspondent. peter, you've got to rob peter to pay paul or however the phrase goes, where are the public and getting up the money to make the military happy? >> tom, it is not even certain that that is the provision the republicans will fight. i talked to a top republican yesterday, he does not like that idea. the notion here, tom, is that speaker boehner has to come up with something to show for their efforts before they can agree to a debt ceiling increase, but right now, you cannot get to any sort of agreement among his own troops, among his house republican conference, so at the

end of the day, much greater likelihood here is that we are looking at a clean debt ceiling increase but we have got to get there and the clock is ticking. unlike all the previous ones as you and i talked about, there is not a lot of time this time. there is much less wiggle room this time around. peter, and of the weekend, i have never seen such gloom in the papers about the republicans. not only the debt ceiling this organization, but also immigration knocked dead. who is a supporting john boehner? >> i can tell you among republicans, they are all in a better mood today because of john boehner's decision. the republicans i spoke to over in the house. what has happened here is tom boehner and a lot of the house republican conference would like to move forward with immigration reform. they know it is important to their presidential ambitions down the road, but in a midterm election year, his numbers are worried about their own highs, their own electoral chances, so they do not want to tackle it this year because they think they are teed up for a pretty good year. why inject this issue into the

election mix this year? what john boehner decided to do yesterday is to blame and put this off to the next year and satisfy his members, even though he understands it is not the move they should be making at this time. >> peter, speaker boehner use an interesting analogy to explain how difficult it is to get republicans together on a single issue. listen -- >> mother teresa is a saints now, but you know, if the congress wanted to make her a saints and attach that to the debt ceiling, we probably cannot get 218 republican votes. [laughter] the jokes are there, but what can get done given that the midterm elections are coming up in november? what will they unite around? >> i will tell you, scarlet, that is a good question. nancy pelosi asked the question yesterday. maybe you should pack up and go home. without immigration as a real legislation cobblers become it is hard to see what else they are going to get done of substance.

the president signing a farm bill into law today, finishing that up in michigan, there is not a lot out there. they're going to basically be campaigning between now and the midterm elections. there is no substantive, big- ticket item that you can see. maybe they will talk a little but about housing reform, but nobody sees that happening this year as well. >> what kind of republican strategy is this, adding a concession for adding a concession's sake? >> it is all setting a template for future debt ceiling fights. the interesting thing, christina, is they can't even have a clean debt ceiling, they don't even try to attach something else to it. the dust that a template for the future. the democrats will say this is how you did it last time, this is how you should do a going forward. history is important here in the future is important as well post a >> peter cook, thank you so much. republicans retreat this weekend. with us at rbc capital markets. the markets care about washington? >> if you said to me today do they care, no.

it is not an issue. >> i agree. jon golub will help us out through the hour. >> shrugging off washington once again. we want to highlight the cover of the new "bloomberg businessweek." it is covering the new booming business of e-cigarettes. sale tomorrow. a sensitive new age marlboro man. this is "bloomberg surveillance." ♪

>> this is "bloomberg surveillance." i am scarlet fu with tom keene and cristina alesci. our top headlines, the bank of england being dragged into the investigation of currency market manipulation.

itk officials told traders was not improper to share information with rivals. is according to a person who is he notes turnover to regulators. information is at the heart of the investigation in europe. blunt talk from the eu for my top -- from a top u.s. settlement. using profanity over its role in the ukraine. the call as to the tension between east and west on how to handle this u.s. -- on how to handle this ukraine crisis. york may be in store for more snow, but it is time to play ball in arizona. the diamondbacks opening spring training early this year. the team is getting ready to open the major league baseball season with a pair of games in australia at the end of march. those are your top headlines. >> i thought video yesterday of the st. louis cardinals, all their equipment and their locker

room in st. louis. >> they are better off when the jamaican bobsled team. >> they did not get their equipment and a startled. >> they are clear now. >> fair enough. it is jobs a. cristina alesci has the most interesting one. >> i am all over buybacks. says -- george milano, who we had on the show, says >> you have got to think that maybe it was not the reason why, but it certainly helped move the decision along, having a vocal investor like -- >> i think it is unproven. i think clearly mr. icahn has been a vocal. jon golub with us from rbc capital markets. this is not the way boards work.

went like they will raise another $10 million this quarter. >> boards don't care what activists think? no. maybe the old world. >> a lot of room pointed by activist investors, too. >> absolutely. >> i think the biggest problem the media gets on apple is the scope and scale of their cash generation. they're going to generate over $10 billion in the next 90 days. >> you have to separate where the idea came from versus whether it is a good idea. if it is a good idea for them to give this extra cash back to shareholders, as you said, tom, then the stock goes up, whether it is carl icahn or someone else, i'm not sure. >> is apple migrating toward being a blue chip company? >> it is maturing. it is a successful company, it sits on a ton of cash, more cash than any, and they're giving it back. but that makes them blue chip,

they are blue-chip was a vitamin c if that matters. >> time warner, what was it $5 billion, $10 million? >> the question is -- why are companies not comfortable enough to do more and m&a? are nott that they issuing buyback and chairs. with the balance of the corporate boardroom from rbc capital. startupg up, the small takes on consulting giants by leasing out their so-called nerds by the hour. we talk about making consulting expendable and affordable on "surveillance." ♪

>> good morning, everyone. "bloomberg surveillance." with me scarlet fu and cristina alesci. jobs a, we will have that. it is a boring data check.

equities, bonds, currencies, commodities. 10 year yield higher. a relief rally let's call it. euro higher, nymex has done nothing since time began, that is it for the data check. i think it will move at 8:31 this morning. >> a lot of stocks on the move but i want to focus on one. that is twitter. the little bird got shot down, shares down 24%. that is after this microblogging service obviously reported sluggish user growth, which is a big concern for investors. we could see this year, this stock take a little bit of a hit, and social media in general , investors seemed more skeptical. why this year, i have no idea after being so bullish last year. >> maybe twitter should hire some consultants. that is what a lot of multinationals do to make them meaner and later as we know very well. but for small businesses, the price and scale of consulting giants like a mackenzie remains

out of reach. there is a startup called hourly nerd that hopes to change that and hope to end this consulting model. the company connects in ba students with -- mba students small and midsize business was up it is backed by mark cuban, the owner of the dallas mavericks. . >> that is a stamp of approval. hourly nerdceo's of as we speak. how unusual is this to have entrepreneurs as your -- there is some homework, right? >> it is something that is becoming more common over time. a lot of mba students want to get into it -- >> into it right away? do you get credits for this? yes, hbs is giving us credit just for running the company, porch really helps free us up to

run like a runtime business, which is exactly what we are doing. >> a credit and a half? i would say that is actually not that great. they could be giving you at least three credits. >> from the classes we are taking, it is almost like we are -- we are taking courses with the people who literally write the books on how to find a company, what are the problems you are going to have, how do you run a small business, so i would say we are very fortunate. >> tell us who your first client was and who your first higher out was. like, which in ba -- mba student did what? >> we went door-to-door. we would've a website that cost about $10, started knocking on doors, cambridge, brighton -- >> do you need an mba guy? >> yes, we are here from harvard business school, we have access, what can we give to you. and we had a flurry is that's a florist that was willing to have as redesigned their website. it paid $40 or $50. i had to drive back three times to collect the $10.

>> very profitable. what are you learning -- i was rogeros and spoke with martin by the article on davos in "harvard business review," great guy, what are your guys are selling you to do as you do hourly nerd? >> great name. >> i think it sort of depends. they cannot tell us exactly what we should be doing but they tell us a lot of issues that we should keep an eye out for, so ways to really think about how you create really good, high value for customers and make sure you're continually delivering that. keep everybody happy, keep everybody working for the same goal, make sure everybody is focused on the right things at the right time for your company. >> what sense do you have that this is how the job economy is going to look like in the future? i mean, one thing that really struck me was that a lot of your consultants that you hire out our women who decide to stay home with their children and now can work on projects at their own time. >> absolutely.

we think that is the incredible value. there is no doubt we are at a time where work is changing and the ability to give somebody who has decided to take a break the ability to consult for or class companies at an hourly rate of their choosing is incredible. not doing it for economic reasons, some are keeping their resumes fresh and want to get their hands in the game. there is a woman on our platform with 17 years of experience with a cbg company that probably charges $40 an hour. >> a lot of undergraduates are nervous about getting the job that they want out of school. are mba students a similarly nervous about getting a job they want coming out of the program? >> it is not about being artifice, it is about going to the company were you cannot determine your future and work for other people. i've spent time at other companies where you are reporting into somebody, you are doing things that you do not think are the most high-value work for that company at that given time. martin'sg at roger

wonderful book on leadership, is your basic leadership strategy to lowball mackenzie? arehe basic idea, you barton's worst nightmare? no, they are overpricing it, but i think there are a lot of things that companies -- >> just her member he said that on "surveillance." >> i don't think he wants to go work for mckinsey. fordon't want to work mckinsey. wi-fi will not be working for mckinsey, that is correct. >> that is not the mentality these guys. >> let me bring in jon golub here with rbc capital markets. is anybody at harvard business school want to go into the security business like the acclaimed mr. golub? >> absolutely. it is an exciting time to go into hedge funds. the hiring has restarted there. >> i want to know how many want to go to equity research there. we will get two guys from wharton or --

>> with the broader hiring this time around, is there an appetite to get young tourists with no experience? >> yeah, i think so. i live in equity research. the great place to really understand businesses and to grow, and some of those guys end up continuing on, and some of them end up getting picked off by companies who benefit from that experience that we give them. >> do they still do case studies at harvard? >> oh, yeah. >> are they as deadly as they were so many years ago? [laughter] honestly, i am in a class called launching technology ventures, and every single case is how did the start of deal with this issue, how do you do a b testing, how do you go to market, how do you find customers? it is not theoretical, it is incredibly applied impractical. >> incredibly pragmatic, too. what do big consultants like mckinsey do that you don't do yet but want to?

>> boeing has to compete with airbus, that is a mckinsey company project. we are trying to bit off the bottom 5%, 10% that is too practical to pay $2000 a week four. 25, 30 years from now, there's no doubt you can get advice may guy who is a graduate students and get paid by the hour. >> absolutely. >> might i suggest that bloomberg lp and are wonderful terminal business, so much of this is consulting ideas and numbers and getting them into an xl spreadsheet. >> absolutely. >> the skill set of moving brainpower over to a graphic display is half the battle, right? >> we get problem -- projects like that all the time, yeah. when they would to school it was 20, 30 years ago, so they are less well-versed. >> where did you do undergraduate? >> m.i.t., i studied economics. >> you?

-- princeton economics. >> why did you go down the dark bad dusty road withi an m degree after the experience with economics? >> i had great spirits with two private equity jobs. withhad great experience two private equity job. hbs lets you put a great for more money markets, which sounds through radical, but it has been incredible. >> where do you want to work? rights we have this company going, and it is growing really rapidly. it would be hard to back away photo >> you are backed by mark cuban. that is incredible. what is that like to be backed by him? >> he obviously works with entrepreneurs pretty regularly. when you get advice from mark cuban, it tends to be really to the point and really useful. so that has been really great for us. >> comeback when you want to talk economic. patrick petitti and rob veryrman with hourlynerd,

cool. you guys graduate in may? york, third week of may. >> sounds good. >> thank you for having us. >> that is actually true. right of ay for the lifetime. it is our twitter question of our day -- what is your favorite olympics storyline? there are so many to choose from. the jamaican bobsled team without their equipment, hotel rooms not complete, the water that is brown, tweet us @bsurveillance. ♪

>> good morning, everyone. "bloomberg surveillance." dell futures up 16. it is quite before this morning's job report at 8:30 this morning. with me scarlet fu and cristina alesci. is singleiday, here best chart. i had my head in sochi. >> sochi is all the top headlines anyway, so we will go right with that sochi theme, and our single best chart is olympic themed. it is about how much countries give athletes for winning the gold medal at the sochi live again. caus

kazakhstan -- $250,000 was up a lot via -- $250,000. than 200 thousand dollars. the u.s. will pay you $25,000. but we know it is about endorsements and sponsorships. >> look at the bottom of the chart. >> yeah, the brits don't pay anything out. they assay it is really about the honor of competing for your country. >> remember that movie -- >> "chariots of fire"? >> yet. >> i don't know about you guys, but i am all about the bling. how much is a gold-medal worth? >> good question. if you break it down, 525 grams of silver, six grams of gold, so it is kind of a shell, and at current prices, the gold medal will be worth about $635 and $.12, for it anybody was thinking about melting down their gold. they have to bring it home and show it to get that payouts, at

kazakhstan. are in that is snowboarding, but -- >> what is your favorite olympics storyline so far, jonathan golub? there have been so many bad ones. >> perhaps that is the problem. it has been all about security, nobody is talking about my favorite -- tom's favorite topic, which is the hockey. it has been all about this issue. >> i cannot wait to see lundquist play. it is a different story. we want to bring you something from nsa director michael hayden for just a boat -- who just spoke to bloomberg. we are talking to you, olivia sterns. >> i would make the assumption if you're going to sochi, you will be intercepted. voice and data. as much of that kind of rubs an nerd,d civil liberties

and serve -- nerve, in terms of the security of the get-go maybe that will add something. >> there are also reports, a russian official said something about we can see you in your shower, and we can see you. -- move their showerhead, turn on, walk out the room, and he moved there is weight, they are videotaping us in the shower? >> there was a james bond movie and they seem up the room, and in the mirror came a you can see the doubt where the camera is. i am not suggesting they're doing that is sochi -- >> no, it is right above the shower, actually. [laughter] >> really? >> let's take a look at pictures -- we have got the olympic theme going on. the first is canadian snowboarder max parrott. slope-style in snowboarding. >> this is the one shaun white pulled out of because he said it was too dangerous. that is unbelievable.

some guy during practice broke his collarbone, another suffered a concussion. it is a long obstacle course that ends with several high jumps with several high jump. >> the next picture -- >> that look like erik schatzker. >> the qualifier for the lady's competition, the u.s., hannah kearney led the way. >> short skis. >> she did that at new hampshire, she was at dartmouth. they just want -- the athletes are getting better and better, and every olympics is the same, they just make the courses tougher and tougher. they have reached a point where i guess there are some serious issues. but ik i did that once, did not do it on purpose. >> next we have got the russian figure skaters that led the qualifications. >> i saw adam johnson and that outfit, i think it was two fridays ago.

[laughter] >> oh, come on. >> adam has a total makeover, he looks completely different. we have got the tight-fitting suits. >> hockey does not start until february 8. >> figure skating is a big moneymaker. actually, it started last night, as we mentioned, with the qualifying round, but it is a slow buildup. they have to really milk that one. >> it will be interesting to see how nbc does it because with all the criticism, i think they did better than good at london, right? >> here's a number for you -- 104%. lego's the grayso increase in revenue. they are now branching out to the big screen. ♪

>> good morning, everyone. "bloomberg surveillance." washington -- our peter cook will also much on the jobs report, this is that 8:30. it is much more consultative than two or three numbers. gross willadio, bill join us, our coverage through the morning. the market impact of the jobs report out of washington this morning. really, really interesting

report. , and a lot of issues as well. scarlet fu has our "bloomberg west" company news. >> we begin a stealth buyback, the ceo would tim cook at apple says the company buyback $14 billion of its own shares over the last two weeks. he made the comments with an interview with the "wall street journal ."\ advertising sales at the "new york times" fell. but the rate of new digital subscribers tumbled to 19% down from 28%. also posted earnings that beat analysts' estimates. and also rock of fellow -- and also rockefeller executives say they will move faster to develop standards for using tech while behind the wheel. why is this so important for kids to drive around in a book -- and update their facebook

statuses, he asked. >> every family has been touched by this directly or indirectly, tweeting, whatever, phones, all of a sudden, it the critical masses up to where we have got to do something about it. accidents, injuries, whatever. >> if my phone rings in my car, the kids yell at me to not pick it out. >> really? >> the kids are being told at school tell your parents not to text. >> i did not realize they are teaching that in school, too. >> what we have now? movie opens in theaters today. it is a 100-minutes animated figures. features lego the toy company had to be convinced into branching out to the entertainment world. " has theg businessweek article.

took five years to make. why so long? >> even the courtship took so long for warner bros. because basically lego has been doing so well the last couple of years, but 2003, 2000 four, they were really struggling, and part of the reason is they had gone way outside they're just making toys with breaks. they have tried all these new product line, they try to do it themselves, racked up used losses and got very nervous about doing anything outside of their core expertise, so making a big lock buster movie, they were like why should we do that? it really took warner bros. a long time just to get the ball rolling saying yeah, you should do this. >> what impressed me with the fact that you had different characters from different movies like superman from marvel -- i might be getting my comic books wrong here. and then other characters, mixing it up because that is how kids play with their lego sets. "theat bilbo baggins from hobbit" movie, and they could be playing with wonder woman.

>> yes, kids do not really care who owns the ip. >> do companies care? >> they do. but lego has been a big buyer of analytical property in hollywood. 1999, they went out and bought the rights to "star wars," and that has been one of their top sellers. one or twice a year they buy a movie or tv show. >> the headline here from "pinocchio" onto the disney success, and all of a sudden "toy story" was the new kid on the block was of you are giving this movie a rave review. is this like the new "toy story"? >> yeah, on rotten tomatoes, i think it have a 99% rating at this point. part of the creative tension in making the movie was legos' core audience was five-year-olds to 12-year-olds, and they had to reach teenagers. so they had to push lego out of their comfort zone.

they cut out all the kissing scenes. >> jon golub, you have sons out of that range, with big ocd leg -- would they go see the lego movie? >> they might. i am watching you pick up the over myhey are all office. that is the only way to get them to come to work with me on the weekend. >> what is next for lego? did they sign onto more deals with warner bros., or is that option available? >> there is a second movie in the works already, which is cartoon network tv show. so they will make another movie based on that. >> this is either -- >> what language are you speaking? >> folks, i am totally out of touch, or scarlet fu is working in another world. >> i work in a toy factory in my spare time. >> when you look at this, and

within your reporting, what do we need to know about where lego is going in five years? is huge in the u.s., and with germany, near market saturation, but a lot of these emerging markets to not really have that much brand recognition yet. china, india, and so i think part of the reason they finally did sign up to do this movie is this is going to open in theaters all over the world, and there is knock off label products in all of these markets, so too, with a premium and convince people -- >> 10 seconds -- how is will ferrell? >> hilarious. he plays adult fan of lego. a breaickhead. >> coldly smolders and will arnett are in the movie along with jonah hill, oscar-nominated actor. thisry good, "legos," weekend, scarlet fu will have

the review monday morning. forex rapport before the job, major story, yen backs up, a weaker yen over the last three days. jon golub, thank you so much. ♪ >> republicans and democrats

parlay for continued unemployment. 14 billion ins stock. burnettear-old carol shows up to bid jay leno ado. boomer surveillance. we're live from your city. it is jobs day, friday february 7. joining me is scarlet fu. is stephen roach, out with an important new brooke -- a book on china. here is christina. reopened forets

the first time in five days after being off for the new year. day, we willg jobs have full coverage. there is a very confusing report because of unemployment benefits expire in and the weather. launches its curve the smartphone. >> i am not ready to upgrade yet. >> we also have the olympics , the opening ceremonies are at 11:00 a.m. >> part of this is watching it at home with your family. >> to me, it is just over. let us look at shares of apple. i said that they are two percent higher. his after tim cook said the company did iraq $14 billion of

its own shares over the last two weeks. he made those comments with an interview with the wall street journal. headed inlinkedin are the opposite direction, down seven percent. revenue missed analyst estimates. like twitter, it is seen a slowdown in growth. ibm may sell its semiconductor business. goldman sachs has been hired to find a buyer. find a partner for the business. shift, thetrategy biggest in two decades. >> there is a lot going on during republicans are in search of a plan. over the weekend they will look at the debt ceiling. peter cook is with us. he is our chief wash and correspondent.

i know there is a shift in the last 24 hours in this debate. the debate was like to immigration. what is the shift? >> immigration is the bigger story. as close as we are to the debt ceiling deadline, john boehner tabled immigration for this year is a very big deal. it has big implications for the big -- midterm elections. johnr the debt ceiling, boehner is a man and a box. at some point, he must concede defeat and move on and allow for a clean debt ceiling increase. everybody knows that is what is going to happen at the end of the day. there is a narrow window for them to get that done. there are still the risk for some kind of mayhem in between. the clock is ticking and the window is narrow. >> on immigration, it will have

an impact on midterm elections, but what about the presidential elections? >> that is the best case scenario, to deal with this year. top republicans have been telling him that. listening to his rank-and-file members in the house. they believe that introducing this issue right now would jeopardize their chances for boosting the numbers in the house and retaking the senate. that is job one for them. they think obamacare is the story of the year. they think putting immigration in their jeopardizes that. ultimately, they have to get it done. >> chairman yellen had some important testimony next week. how will that be treated in washington? testimony on tuesday is a bigger deal of people think, only because it set the tone and

terms of the reception she will get. they want to spend a lot of this year scrutinizing the federal necessarily bashing janet yellen personally, this is her first time on the hill and she will get tough questions. it will set the tone for the future. he was to scrutinize the fed this year. think it will be more political than economic should be the take away. >> we have been buzzing about joe biden. he was speaking in philadelphia about infrastructure talking about more investment in the country. he made some unflattering comments about new york city. >> if i blindfolded somebody and took them to an airport in hong kong and said it where do you think you are, they would say

this is america, it is a month -- modern airport if i took you , you must think you are in a third world country. >> he knows his airports. airport export stephen roach from el university. boy did joe biden nail that. >> when was last time he was in any kind of airport. he travels on that super exclusive private jet. those are the old days. la guardia is lousy. jfk is slow motion. your tax dollars in washington, la guardia is better than it was 10 years ago. >> that is not saying much.

that outden can find when he rejoins the private sector. apparently he will decide about running for president next year. >> peter cook in washington, a busy weekend on the debt ceiling as we go to chairman yellin's testimony. >> everybody new york will remember those questions if he runs for president. >> i will be knocking on his door. >> i get so much mail about your caution of the economic experiment. we have a jobs day today. last month, everybody got it wrong. why are we too optimistic? higher --es have --her -- please higher

in debtple are overly and saving short and reluctant to spend. so much of the economics disagrees with you. they are more optimistic than you. what are the optimists getting wrong? that side.o be on they come on this program to get people to be bullish in the market. larry has been cautious about the global outlook. he is an exception. is in thean consumer balance sheet recession. growth has been a lousy two percent. this is anemic. >> why is a market paying attention to the labor numbers and we know participation rates have been in flux and down?

>> it is focusing on payroll survey as a good gauge for industrial and overall aggregate economic activity. there is a huge distortion by weather. >> christina brings up very nicely the ambiguity and the research. some people look at the participation rate and say we will adjust this or that, it is not that bad. some speak of a higher unemployment rate. why do we argue so much about jobs? why the ambiguity? >> that is a fair question,,. people want to think the recovery is at hand. i am more in that camp. >> we will speak to him about china and revisit the consumer.

it we will do that later in the hour. check.et a data chock -- the tune year yield is 2.70. i will be looking for the revision of the previous report. i really want to look at wage dynamics in the report coming up at 830. now it is forecast were 180,000. >> it is in flux. >> jay leno left the stage of the tonight show for good last night. highlights are coming up. this is bloomberg surveillance on television and radio.

>> stephen roach is our guest host. he considers the next america and the next china. i cannot say enough about your book. nation?he more troubled >> i think we are.

china has figured out codependency is not sustainable. they are adopting a consumer led model that will make them less dependent on american they are today. what are we doing? we are trying to go back to the same old growth story thinking we can get cheap goods from china and they can buy our treasuries. it will not work that way in the future. staffers was talking about jonathan spence. that is from another time and place. that is ancient history. inould suggest we are back the time of macarthur. highly get out of our past? >> there is a tension between cold where -- or politics and new economic realities. we need a new source of growth.

exports will do it. most rapidly growing export market. we need to sell into this new consumer led chinese economy. >> should they be able to buy majority or minority parts of american corporations? it. they areoing not taking companies back to china, they are injecting capital into the company's and that is generating jobs and economic activity. hashe pollution in china reached a tipping point. how will china respond to her terrific air quality? >> they are responding but it will not take place overnight. beijing, they do have a carbon tax that needs to be raised. toy have a big uphill battle wage. with us fromach is

el university. the new book is "unbalanced." the challenge is the american consumer. bloomberg television and radio through the morning on this jobs day. good morning, everyone. this is "bluebird surveillance." -- "bloomberg surveillance."

>> it is jobs day. it is a weaker japanese yen than the last two days. it is a calm her global market. scarlet fu is with me. stephen roach is with us from yale university. he will talk to him about the american economy and it. here is scarlet fu with headlines. is beingnk of anglin

dragged into the investigation of currency but adulation. they said it was not inappropriate to share customer information. information sharing among traders is at the heart of the market manipulation in europe. call catches the tori newland using a profanity with the eu. the call at city tension between east and west on how to use -- the economicndle crisis. expect a lot more selling. prices will continue to fall. the recent selling in emerging markets creates a buying opportunity. those are your top headlines. we saw this between paul

krugman and danny roddick on economics. , whichk at this debate is it? >> shared responsibility. the fed did not do the structural adjustments. .hey ran big deficits now they are paying a price for it. there is no enforcement mechanism. do they actually do to change behavior? nothing. >> this is a big debate. chairman yellin is speaking in washington for the first time

next week. we will have that for you. that is on tuesday. this is a different matter. >> let us go to some thing lighter. last night was jay leno's last night as host of the tonight show. to bostonic the comes will show at my apartment. >> i am calling it a bomb site. you cannot imagine what it was like. it was a caveman guys place. you had no furniture. ae only thing you had was poster of robert klein over your bed. i cannot explain that. >> that was jay leno with billy crystal. jimmy fallon will take over on february 17, bringing the show back to new york city.

there is a lot of nostalgia about the tonight show. late-night tv has changed a lot since jay leno began. why are these shows still so evident? >> they are very profitable. when people think that network television, they cannot primetime. the morning shows and the late-night shows are very profitable parts for the networks. greatc, it has been a moneymaker going back to johnny carson. >> the heritage that we grew up with continues forward. it is of the few things that is enduring in entertainment. >> we talked with the fragmentation of television, that are certain shows still very important for viewers and advertisers. >> you mention advertisers, the

18 to 49 demographic, is it still valuable is it? >> as valuable as it has ever been. why are they forcing jay leno off? he is still number one, but they are doing it to get younger. >> let us bring in entertainment reporter stephen roach. >> we were hooked on johnny carson. there was nothing else to do late at night. this generation has a zillion things to do it at night. are they really going to watch these shows? >> there is still a core audience for late. it is very dedicated. it has been skewing older. leno,letterman and jay they are trying to bring in a younger audience by going younger. that is why you force-out the number one show in late-night. who would do that from a business perspective?

>> younger people are watching fallon on their mobile devices whenever they want. i consume jimmy fallon content in the middle of the day. for an older audience, which is steve and me, describe mr. fallon. >> he has musical talent, he has relevance. >> he is the saturday night live alum. >> you used to be relevant. >> how is nbc going to capitalize on that? they can get that digital audience, but it is tough to make money on digital. >> they need nielsen to capture watchingor digital three or seven days after. thank you so much for your

take on the late-night wars. coming up on surveillance, we will take a look at where the job growth is in america. we will break it down state-by-state and industry by industry.

>> good morning, this is ."loomberg surveillance or c there will be a lot of shoveling this weekend.

it will be interesting what apple is going to do with all of its cash. they have bought back $14 billion of their own shares. tim cook told the wall street journal that is what they have been doing since the stock was pushed lower. eightre down about percent. it is 104 days of operating income. >> it is incidentally when you consider how much cash they have. companies had to do them when their stock prices are high. it had quite a run last year. is what carl icahn is looking for, right? from yale roach university is here. the headline is not what they have in cash, they are making it

every day. $130 million in cash build every day. >> you can argue it is just a drop in the bucket. for a tech company is a good sign. they are cash rich. they have great cash flow generation. you not remember another time and place which religiously bought back stock cheap and gave it out. do you agree that this company is giving back expensive shares? >> you have to sit back and say what is the best use of my capital? it is been for acquisitions or debt paid down. have beenly, they reluctant to return cash because of the signal it sends to the marketplace that they are no

longer a growth story. >> should an innovator be returning cash? >> what that shows to the marketplace is there is no place internally for investment of capital. the lack ofs at animal spirits in america. not going form with that acquisition or investment so i will buy back shares. >> apple is a fantastic company. i would much rather see them put their cash to work in pushing the envelope of innovation. i am not the innovator. it could be apple tv. create american jobs. on thatve the decision to the managers of the company. i wanted to innovate new

products that make our lives better and more productive and easier to manage. that is what they are good at. ofthere were a lot comparisons between apple and google because google is using its cash to make these innovative acquisitions. >> that is the point. this iserious point is not about apple. choosing to buy back shares. the that take away the innovation and investment in the american jobs we just talked about? >> it depends upon the industry and where it is in its growth curve. the tech industry should have a lot of areas to invested capital and drive growth. it shows the marketplace that maybe they are becoming less of a growth story and more of an income story. they do not typically want to send that to the marketplace. >> equity markets of gone up a

lot. expensive to make acquisitions with stock. it is expensive to buy back shares. this is not the best use of cash. >> i guarantee that steve jobs would never ride back shares. he would put it in the next product. sweeney, how good of a week that microsoft dad? >> a good week. it was a strange week for the internet. it had a tough week. traditionalold, high-tech companies had a much better week than some of the newer ones. thee have to talk about twitter conference call. i thought it was revolutionary how they did that. stephen roach, thank you so much. look for the movie on the fourth

of july. scarlet fu and matt damon will be in that movie. >> i can't wait. is 180,000 jobs for january. >> we are on bloomberg television and radio. this is jobs day. i am tom keene with me is scarlet fu. futures improve seven. >> we're looking ahead to the jobs report from the government. the theme is too many workers and none of talent. he joins us from milwaukee to

talk about where the jobs are and where they are not in 2014? where do you see that problem the most, too many workers and none of talent? >> in some ways it spans across all the industries and many states. in the states and a destination states we are seeing that. lack ofeeing a synchronized recovery. some industry and business is going up and down. there is a mismatch of jobs getting tougher and tougher. it is not just a u.s. phenomenon, it's happening all over the world. , therenew acceleration is a new new. what does manpower see as we move into the second month of 2014? some are still seeing hesitation. it is a more optimistic hesitation. the jobs report that came out last month is -- would you be looking at averages.

we are hearing from our clients at their not a desperation. they are not too worried about the economy. they are worried about a lot of the forces but they will continue to be extremely cautious on hiring and higher only the exact right person. that is slowing the market down >>. >>we have had a lot of questions raised about global instability. hiringexpect to see patterns shore up in the united states? >> i don't you will have an effect. clearly, the trading partners we know the stats about. good still seeing some demand in asia. our business in asia is performing well. to pana starting to move up. -- japan is starting to move up. ,hey don't want to get too far particularly china. this is one of these divorces that we are talking about the may not have a big effect. that is 171,000.

we'll have to see what the year revisions say. the report will show us yearly revisions that last year proved to be a little bit of a confusing statement for the market. >> absolutely. >> i want to go back to something you pointed out which is the uncertainty being the only certainty. we are in a midterm election year. there'll be a lot of gearing up for that. i robie looking to 2016 in the presidential election. makepolitical certainty companies less certain for the future? >> i don't want to be -- i like to be optimistic. we have political uncertainty for a long time because we have such division. if you look at healthcare, the debt ceiling, all these things are just creating a behavior in businesses that are saying i

have to tune that out. it is squelching down growth and creating an environment where you will not move in the long term. >> you are in the trench on the werimum wage. your manpo people are above minimum wage, but what does it mean? >> it will definitely make things more expensive. we will see. it will be a boost to us as a company. worried about part-time work. you will see a lot of reductions in that space. logisticost part, centers like amazon and ups will move the cost up. liam, will stay about the same. >> thank you so much for joining us. ,, a quick correction. we will let have 30 inches of

snow. it has been downgraded to 1.5 inches. that is like a jobs report. accuracy on for bloomberg surveillance. i am speechless. good morning.

>> good morning.

a this is a view of sochi on the black sea. she will be there in a number of days. to the left is the dome where the opening ceremonies will be. you will see that tonight on nbc. to the right is the hockey arena. she is so far up and the top of the dome that she will need oxygen to breathe. you are so jealous that i have any kind of tickets. >> and will be great. i hope you to see gold or bronze or silver. >> i will come back with a self of me at a russian athlete. i am told i cannot pack toothpaste or shampoo.

bring the yogurt. miller with you and maybe you can use some bitcoin. i'll be hosting in the loop with matt miller. we will be going wall-to-wall on bitcoin. that might make it in there. we are going big on the jobs report. the question is the weather. we also have richard farley, he will break down the conviction for us. we will also talk about the currency fixing scandal. matt miller and olivia sterns at an :00. >> george clooney has a new movie coming out. >> i am totally distracted by george clooney.

see the monuments men. it is about world war ii treasure hunters. sat downooney actually with charlie rose this weekend and this is what he said about the movie. >> if you look at the films we have made, they have been really cynical. we are the least cynical people i know. a happier movie. a movie with a happy ending. i read this book and the story was amazing. i did not know that this had happened. we read the book and when to sony and said this would be interesting to make this film. george clooney. on charlie rose. >> i hope this does well.

>> it is a great story. this is not a sequel, it is a franchise or a blow them up kind of a movie. a great a-list cast. there is a lot right of this movie and hopefully it will do well. >> i am praying it is a great movie. look for george clooney with charlie rose. it is jobs day, this is bloomberg surveillance.

>> i am scarlet fu with tom keene. here is some company news from the files a bloomberg west. shares of linkedin are down. analystmissed estimates. it is headed for a fifth deceleratingter of sales. advertising declined at the new york times. to two percent. the rate of new digital subscribers fell to 19%.

u.s. senator jay rockefeller says he will pursue rules governing technology in cars. if they don't do it on their they need to move faster to develop standards using tech wall behind the wheel. do best atthink we bloomberg surveillance, with big but serious issues with smart people. for decades we have cried wolf about the debt ceiling. that ceiling is upon us again. she is a liberal that conservatives listen to. he is a conservative that liberties consider. both are tied to the integrity of the congressional budget office. you've seen this countless times

before. what is different about this debt ceiling debate? >> i hope what is different is we don't actually have it. compromise hope of a and a cease-fire in the budget wars. chairman ryan and chairman murray did a good thing when they put together a very limited agreement that kept the cease-fire going until the end of 2015. towill be very irresponsible revive the budget wars or any other wars for the debt ceiling. it is ridiculous to have a debt ceiling and it should not be up on in political games. a fractious conservative debate. will be the best practice right now for a speaker banner and conservatives? on do they get back on track

fiscal policy? republicans in the house recognize that close in the government did them no good. economic damage that comes from flirting with any the debt ceiling and they want to get past it. the difficulty is it is irresponsible to simply pass an increase in the debt ceiling without saying something about the state of the nation's finances. the issue becomes what symbolic fig leaf can we attach to the debt ceiling will pass the house and go to the senate and avoid economic damage make the point lead to do better. ask the same question, what current strategy is this that you have to attach a concession to the debt ceiling just for the sake of doing it quest to mark aren't the american people fed up with this kind of gamesmanship at this point? >> all the polling suggests that

the american public agrees that summit should be done about the debt and spending. that is a policy issue. when conservatives go home and talk to their constituents, they say of course you are right. should you mess with the debt ceiling and close a government to get it and they say no. one of the oddest things of , why isn't the president taking a victory lap? the deficit has plunged. things look pretty good. why as the president reluctant to company how well they have done? >> i do not know. fiscal policyom a point of view is a mixed story. the deficit has come down very

fast. it is projected to be in the range of three percent of gdp. that is a pretty acceptable level by historical standards. that is a reason for a victory lap very and with the deficit come down fast, it drags the economy. stimulus is afed drag on the economy. one can argue that it has come down to fast. i agree with you. image point of view, he should base a look, we cut in half. >> the problem is going forward the problem is not going away. >> that is right. run, the deficit will rise again for a

demographic reason. the president is conscious of that. the conservative members we are talking about are picking up in their district. it is a long-run problem. it is not as urgent a problem as it looked three years ago. from the conservative side, eltek cynical politics for the president to celebrate. that is just after the president leaves. to say things are fine does not look good for him. thank you for founding the cbo. you have made a smarter organization. overbo had a big impact the job formation and the affordable care act.

let me give you the honor of an answer. and you ever think the cbo would have such profound impact on the american debate? impactave had profound for a long time. if you go back to the clinton health-care plan as one example. case, what they said while perfectly right has been over interpreted. it sounds like the affordable care act is costing us 2 million jobs. wet they actually said was are job locked. people are keeping jobs because .hey have health insurance some of those people may not work. i want to get your thoughts

on political dysfunction. that was a big theme in 2013. it tends to be a big team -- theme again. how does it evolve this year? what doesn't get done as a result? >> i think congress will do very little. governmentshut the down. they won't engage in tactics that are damaging and unpopular. both parties do not want to rock the boat going into the midterms. the republicans feel they have vital issues. say i am happy about this. there is an enormous amount that needs to get done. we'll findeful that some common ground somewhere and do something constructive. i thought it was going to be

immigration and apparently it is not. there are things they could do. >> that you so much for brick -- joining us. they are in washington. what an interesting discussion. great. especially in the coming week with janet yellen testifying. the importance of janet yellen thinking that position. asked what your favorite olympic storyline is. bobsled.r is pillows? dirty >> i am looking forward to seeing what happens with nbc and the ratings. have a strategy to launch new shows around the x.

like the tonight show with jimmy fallon. >> hope we see a lot of the of skiers sports that we don't know. have jobs day and we will much more for you on bloomberg surveillance. good morning.

>> live from bloomberg world headquarters, this is "in the loop." item olivia sterns. >> imf miller. is it friday? >> jobs day is 30 minutes away.

>> and a lot of exciting news, 30 minutes away from the jobs report, 1.5 hours from the opening bell. >> a lot riding on the jobs report, looking for 180,000 jobs after the very dismal surprise, 74,000 jobs, the big? is the weather. coldest in three years. >> only three years it feels like 20 years. >> who knew the phrase polar vortex? >> my favorite phrase. a good friend of mine, i want to get first a check at some of our top stories making headlines on this friday. imposingentral bank limits on foreign currency after interventions failed to alleviate pressures on the hryvnia.- on the