it done. don't ask what is in the sausage. we look at meatpacking in america. we are alive from our world headquarters in new york. i am tom keene. joining me today adam johnson and alix steel. she is with the yankees somewhere. i bet you. i bet you. time for the morning brief. we will start with the morning brief in europe. over in asia, the bank of japan boosting lending. 7 trillion yen. economic data and the u.s., 8:30

a.m. earnings are still coming. coca cola. after the bell, panera. >> let's get a data check. stocks, bonds, currencies, commodities. adam johnson will love a lot. -- have a lot. >the 10 year yield turns off of the weekend. . decidedly stronger euro we will talk about the yen. oh what a winter it has been in the east. nymex american crude. that get your attention. here is a good the markets have been. up foring to write that a chat on "bloomberg businessweek." out over its skis.

40.56.en up to a 1 here is japan over the weekend. there is a spike up in japanese inflation and the major thing here is that the climb that does in real wages and japan -- they blow right through zero percent inflation in japan. who would have thought? >> that is what they have been trying to accomplish for years and they're finally getting it. >> be careful what you wish for. we wished for a front page this morning. tonya chen did a wonderful job. >> she did. a lot of talk about dealmaking among potential dealmaking. -- dealmaking, potential dealmaking. this would be a very big deal.

a big deal in pharmaceuticals. activists looking to buy forest labs. this would be a $25 billion deal. wise carl icahn always on the right side of trades? arty dominates the chicken business. already dominates the chicken business. that will make someone very happy with a plate of wings next year. the potential deal -- charter looking after losing out on time warner cable. what are they going to do now that they lost? >> the magnitude of comcast-time warner cable is so large that the others are like -- so what?

cox thatrter boought would be -- it is something. you have to consolidate to get more, right? >> i am baffled by the pushback from washington. stocks here in the u.s. and europe are fairly quiet. you are talking about what happened in japan. the gdp number -- gdp rising a 1%. they have been trying desperately to grow the economy in japan. that is a huge session. 3.1% was the gain overnight in japan. moving on, bringing it right back to the u.s., republicans planning to put their big-ticket

legislation items on the shelf. it is hard to get anything done in washington. immigration, tax reform, you name it. >> this has been a slow three-day weekend. this was the news item, wasn't it? , itot that it is new news appeared last week that speaker banner had pulled a rabbit out of -- speaker john boehner had pulled a rabbit out of his hat about immigration legislation. >> doug stamper would know. everyone cards" watched this weekend. except our guest host this hour. david plouffe. you have not seen it, have you? >> we will start season to this weekend. >> i am honored to ask this question.

what does the silliness look like to you? do you lean forward, riveted? >> when i first started watching i was skeptical. i think people enjoy it. washington does not act that way. >> you mean it is not that nasty? >> people don't kill each other? >> full disclosure, i am not up to speed on this. is claire underwood in washington? >> i do not think so. i do not think frank underwood is in washington. there were elements. but that whole character, no. >> back to the gop. what is the gop going to look like over the next six months? >> their plan for corners. cornersare playing for

-- four corners. they are trying to run the clock out. senator mccain, who knows better than others, said you are not going to get immigration reform done in 2015. we could be looking at years before immigration reform is done, sadly. -- as anshrunk down administrator in washington -- thister the selection -- election, you will see another run-up to immigration. it is hard to pass immigration when all the energy is in the tea party. they say, we do not want to disturb anything. >> i wasn't sure there was any energy in the republican party at all. is it just spoiler? >> when the presidential primary

is going on next year and you are in iowa and south carolina, those tend to be the most conservative voters in the country. that is why will make it tough. that they changed the conversation, they kept it on obamacare. isn't that all voters are going to care about in 2014 and november? >> we have had the rollout in the rollout did not work. it did notaying, yes work, but we like it. >> people are sick and tired of the health care debate. want washington to focus on jobs, on the economy. they see this is somewhat of a distraction. even if they actually do on doing thing -- >> from your democrat party perspective, is chris christie toast?

does jeb bush comeback? >> i don't think he is toast at all. up, he isry holds basically on probation right now. if there was another incident, it could really cost them. maybe he learns his lesson early. running for president is the most grueling obstacle in the world. someone is going to occupy that center right lane. are theristie, jeb bush top candidates right now. versus the tea party candidates. >> let's come back. david plus with us -- david plouffe with us. as we begin a four day workweek. new abouts at hp autonomy's accounting methods before it was exposed to practices. hb managers were alerted to

autonomy's practices to selling hardware at a loss before they bought it. deal for time warner cable hits netflix. there was another competition for netflix -- comcast is focusing on increasing movie downloads and rentals with its own box platform. the website for the las vegas sands is back up and running. hackers knocked it off-line for a week. that is today's company news. hacking, we cannot seem to get away from it. >> it is the word of the moment. when we come back, and other hacking, crowd funding site. kickstart or is the latest target. -- kickstarter is the latest

target. don't go anywhere. ♪

>> good morning, everyone. "bloomberg surveillance." hemndry on the olympics. on inequalityork in america. that is coming up. "bloomberg surveillance." i am tom keene with adam johnson and alix steel. you see our new data screen. i love it. thank you to our data team for working on it. boy are those readable to keep

you up on the market. equities, bonds, currencies, commodities. let's look at hacking? not like snowden hacking. >> las vegas sands. kickstarter -- they have all been hacked. there is a bit of a discrepancy. david plouffe can help us understand this. when it comes to individuals, the nsa is all over us. when it comes to hacking corporations, somehow the fbi is curiously absent. why this discrepancy? >> unless you are talking to a yemeni bomb maker, you have nothing to worry about in terms of the government. there are things washington can helpful to allow more collaboration between the private sector and the government. the fbi is involved in these investigations. the companies have to take steps

year. -- here. most of the private sector is years behind the hacking community. >> you are looking at companies that are unwilling to come forth with the information because it is a negative pr grab. look at target. this cooperation between the fbi and companies, aren't we all continually at risk? >> i think so. i think you will see more and more companies make the decision to be transparent. people get furious. once target got ahead of it, they were doing a pretty good job of it. >> we are showing fewer some of the companies that have been hacked. target, so crowed, -- silk road, mt. gox. >> nursing homes are also at

risk of being hacked. they can still your medical information. >> you would think that getting democrats and republicans together and figuring out a cyber security bill is the one thing they can all agree on. what is hoping it up? >> this was about a year ago, there was a big push back from the private sector, saying that they were worried about the government being overly involved. it is clear that the hackers are ahead of the companies. in 2008, we were hacked in our campaign. we were completely dependent on people going on our website, volunteering, providing money. if it got out that we got hacked, we were worried what that would do. that is the companies are worried about. owehe end of the day, you it to your customers to say the reciprocal here, here is how we are dealing with it. we are behind right now. >> did you read the "new york

times" article? i don't know if you sought. -- saw it. we have government experts going to him to see information. one man seems to be in the underbelly of the eastern european mafia when it comes to hacking and nobody else is. >> we talk about having a surge. we need a search year, a massive surge, a global surge. >> who should lead that surge? >> the government is going to have to play a lead role, not just your, globally. the private sector is going to have to share information. you almost want to have a 24/7 alert situation. >> one more sign that the economy is getting better is married couples can now afford

to divorce. i don't know if this is depressing or a positive. >> it is liberating. >> the divorce rate has risen for the third year in a row. droppeder of divorcees by about a third during the recession. how can you afford to get divorced when you can't afford to rent a new apartment? snarlingt how tom is as you are saying that, alix. >> afford, afford, afford. now i feel better. >> in all seriousness, it does wind up creating new households. you have more demand for housing, home furnishing, you will go out on dating services. right? tom, is that what you are doing? >> thomas stuck on the word

afford. is stuck on the word afford. i am not going there. hopefully, i will not be in that situation. >> coming up, the former us andn of ubs will join talk about the u.s. economy, how we can get it back on track. you are watching "bloomberg surveillance." streaming live on your tablet, phone, and bloomberg.com. here with david plouffe." ♪

>> good morning, everyone. "bloomberg surveillance." i am tom keene.

steel, adam johnson. scarlet fu is off the entire week. adam johnson has our top headlines. in thailand, two people were killed. >> this was in bangkok. one of the dead, a police officer. he was shot. protesters threw grenades and fired on police. protesters are calling for political reforms. the man designated the next prime minister of italy is trying to build support. renzi is trying to build support. he forced out the former prime minister. this was last week after the current prime minister served just 10 months as prime minister. jimmy fallon making his debut as host of "the tonight show." he welcomed will smith and u2.

it marked the return of the tonight show to new york, after 42 years on the west coast. the show was being taped at nbc's rockefeller center studios. >> did anybody watch it? >> i was in bed at 8:45. and that was late. >> 7:00 p.m. early bird special. swear to god. >> no. >> good early morning to all of you in los angeles. let's get to our morning must-read. >> larry summers. a great op-ed. "america risks becoming a 'down ton abbey' economy."

the idea of helping income inequality is nothing new. he lays out ideas about how to reform the corporate tax code. >> sets up the polarity between the two parties. goid, this issue does not away. will this be the front and center issue as we go to november of 2016? >> for the presidential race, certainly. you have to do with getting more growth and more jobs. beyond that, the aspirational need is the right kind of jobs. this is not about redistribution. this is lifting us up who want to get into the middle class. >> and economic growth do that? >> it can. getting 3.5%. that does have economic impact. personal tax code is a mess. what about the corporate tax code?

it is crazy. agreement thatad we need to do something. this is something that has to get done. if it gets done five or six years from now, we will pay a big price for that. there is no doubt the people at the upper income spectrum take advantage of the way that hurts the rest of us. >> here is a number for you. rs, average lifespan of an american. you expect to get social security? ♪

>> good morning, everyone. "bloomberg surveillance." scarlet fu demanded the week off. let's do a data check. stocks, bonds, currencies, commodities.

a quiet weekend except for japan. euro-dollar stronger. yen weaker. japan with a real turn. -- churn. we will talk about that. nymex crude, 101.21. it is a nebraska kind of winter. >> unforgiving winter. unforgiving. here is something unforgivable, not playing candy crush. the very popular iphone app is potentially going to file an ipo. you've got to be in on this action, tom. if there's only one new store you focus on this morning, the ipo off of one game. why couldn't we have just created a game? >> this game is a big deal.

it could be valued between $5 billion and $7 billion. >> it is hard to fathom that it generates over $1 million of revenue per day. it is brilliant. it shuts off after four games and you have to buy more. >> i am going with it. i have never played it. others have with my ipad that was completely covered with ritz crackers this weekend. how do they do that? crush the ritz crackers onto the ipad in three minutes. retirement planning in america. in 10 americans are behind the eight ball. we do not save enough. we are living longer. morning is the former governor, the former senator from nebraska.

it has not worked out so well. has it? >> it has and it has not. you have seen success of individuals taking charge of their retirement systems. the decline in defined-benefit programs available at the work face -- workplace is not been met with an increase in the individual's capacity to save on their own. >> massively. massively. within your panel today i'm a your seminar on the longevity that we face, is at a tipping point or part of the continuing? news,re is a lot of good in terms of people living longer, they are healthier, more active in retirement.

the retirement savings challenge has gone to being a philosophy challenge. you have people who are thinking about, what do i want to do with this longevity bonus? how do i want to spend this time? they are working to make up for that lack of security. >> none of us are going to retire. are you seeing in your statistics and planning? >> they are working longer. of boomers who are telling us that they want to continue to work. you see people doing more information worker jobs. >> i have a casket out behind "bloomberg radio." they are just going to roll me into it. you do have examples of who have ramped up their savings overlong period of time and are in relatively good faith. because it is a voluntary

system, you have significant numbers of people who have not. -- reversedert itself on one of the most important pieces of the debt ceiling feel. -- deal. it was a very good fiscal policy. the insecurity people feel and retirement contributed to that reversal. as an indicator of the difficulty in solving this problem. >> how much is low interest rates the problem here? >> low interest rates are a contributor. we have not prized savings as a society, as many other societies have around the world. we have trailed most of our competitors by 700 basis points. >> we like to buy as americans. i just want to buy it. and i can do it on credit. mentalitychange the where we put a premium on savings? changen't think you can

that mentality in a voluntary way, personally. look at social security. when social security passed the senate, it was a voluntary system. imagine what would've happened if it had been voluntary. if you wait until you are 50 years old and say, i have not saved enough. up the mosten important variable, the length of time you're saving. we are not even where you are automatically in the plan and you opt out of the plan if you choose. why can we get that done? -- can't we get that done? >> the politics are enormously complex. if you look at any of these issues politically, touching medicare, social security, they fared terribly. the sum is greater than its parts. if congress got together and did something to provide stability

to younger workers, even though they are component parts, i think it would sell politically. benefits tothe people living longer? they might work longer, then you have more families, they can pass on their wealth to their kids. is there something positive? >> i think you can underestimate the fact that there are now several decades more of lives that people have. they live very rich lives, they are engaged with people, their friends, family much longer. as an economic force, the intellectual capital that will the workers represent that the u.s. is uniquely able to capitalize on because our companies are very flexible, that is a competitive advantage for the u.s. economy going forward. >> i have got to ask senator kerry, frank underwood? are you watching "house of cards"? there are no medal of honor winners in the show. howt is closer to

washington operates than anything i have seen on television. >> we will quote you on that. >> that is her twitter question of the day. what would you rather watch the olympics or "house of cards"? >> spoiler alert! spoiler alert! plug your ears. what would you rather watch "house of cards" or the olympics? we are watching "house of cards." speed under armour's suits slowdown the u.s.? that is the conversation coming up here on "bloomberg surveillance." streaming on bloomberg.com, your tablet, your phone. ♪

>> good morning, everyone. "bloomberg surveillance. " adam has the top headlines. >> a surprise slowdown for inflation in the u.k. the droplets inflation below the bank of england's 2% target for the first time in more than four years. car sales rose in europe. 5.2%.

volkswagen,ith ford. carrebound comes after sales fell to the lowest levels since 1995 -- that was last year. numbergo movie" kept its one movie. i saw "american hustle." movie" hase lego top spot.he a rave review. he was prepared to be disappointed. it has that whole adult thing going as well. >> also, it is the snow. it also happens to be good. >> we continue this discussion this afternoon on "streetsmarts."

we will look at "american hustle" and "lego." the oscar ads are out. >> i was bored during "american hustle." >> i was exhausted. i had to concentrate to follow it. christian bale, by the way, blew me away. >> you know it is not boring? speedskating in the olympics. there are only four races left in the winter olympics and the u.s. team has come up pretty short. to blame, some are saying perhaps the new under armour suits might be slowing them down. onomberg spoke with the ceo friday. >> we have a full team that is on the ground in sochi right now it is making modifications and adjustments. it is completely typical at this type of level of high-speed performance athletics. this is part of the game. we are making tweaks right now with our team on the ground. here ishe real issue

that when something like this happens and you are a professional athlete, it gets in your head. is it the suits? i don't know. it disrupts the confidence. you can see things fall off the rails, if you will. >> have you ever wondered whether it was the tie when you couldn't get a deal done? [laughter] complained that it was their shoes that did not the one the super bowl. >> i was confused over the weekend. the weather is so messed up in sochi. some great photos from olivia sterns who was there with her family. between the soggy snow and the palm trees, speedskating? >> at sea level versus altitude where the seats were tested? they did not testament competition because they did not want to get away from the competitive advantage. can of hubris there as well. -- kind of hubris there as well. >> what is olivia sterns'

twitter feed? >> @oliviasterns. she will be here tomorrow. very tired him i'm sure. -- very tired, i'm sure. >> this is number three. belarus won gold for catching air in the men's aerials. >> they are so high up. aren't they empire state building tall? >> no, no. >> it appears that way. it is just the angle where they took the photo. this will blow your mind. athlete from estonia. horizontal in midair. look at that thing. >> that is incredible. nordic was during the combined, large hail -- to say the least.

are you ready for number one? drumroll. drumroll, drumroll. the united states ice dancing duo. whitedavis and charlie give the u.s. its first olympic gold medal in ice dancing. , he once snucke out of the white house because the president on the first lady wanted to i stance. -- ice dance. >> you could put a curling lane in the white house. >> curling is awesome. >> did you see the cat going down the curling saying? >> why is curling olympic sport? >> i was on the eastern edge of curling country, sort of a "wayne's world" thing. after work you go and curl. >> to members of the russian

punk band pussy riot have been arrested. they were accused of theft. they were hoping to perform a new song called "boudin, -- putin, we will teach you to love the motherland." apparently, they're dealing with theft. something you probably don't want to do in russia. pussyur band's name is ruiot. just saying. >> 84%. we are going to discuss the business of meat. my kind of topic. meet him a cigars -- now you have my attention. cigars. now you have my attention. "bloomberg surveillance." ♪

>> good morning, everyone. "bloomberg surveillance." i am tom keene. adam johnson and alix steel. scarlet fu, skiing. is she going on the helicopter drop? >> she's the real deal.

>> they drop her into powder and she goes down 12,000 feet. scarlet fu. over sochi. doing it. >> i have some company news for you. from the files of "bloomberg west." sony topping its forecast for playstation 4 sales. sony had been forecasting sales of 5 million consoles by the end of march. the playstation4 goes on sale in japan this weekend. charter communications may go after cox after losing out on time warner cable. to plan to meet next week discuss their options in the wake of comcast's $45 million buyout of time warner cable. hewlett-packard knew about autonomy's accounting methods months before a whistleblower exposed to the practices. this is according to a report in

"the financial times." they were alerted to the practice of selling the hardware at a loss before their lot the software maker. -- bought the software maker. hewlett-packard cannot get away from this bad deal they made. >> it has become almost a non-year for hewlett-packard. i do not sense them getting out of it yet. >> grocery bills are rising. one food giving us sticker shock is beef. in case you haven't noticed. according to a new book, the meat racket is on stands today. they settle competition, squeeze farmers, all while turning big profits. joining us now is the author. how much hate mail did you get on your book from the meat industry on this? >> it is starting to trickle in.

we will see how it goes after talking about it this week. >> tell us more about the book. what inspired you to write it? i have been covering the meat industry for a while. >> for newspapers and for the associated press. the final conclusion of the book is not how the book started. i was just reporting on the industry, but the more learned about it, the more learned that four companies control the market today in a way that they have never controlled it at any point in history, including than 100 years ago. >> to take it back to upton theseir and "the jungle," meatpackers deliver to adam johnson that overpriced beef, kobe beef. ribeye foris wagu meat, weson or dark

deliver fresh food to americans every day. >> the modern meat industry is a technological marvel. it does a fantastic job of delivering meat to u.s. cities seven days a week, 365 days he year. the industry has become highly consolidated. we opened with a story about comcast and the cable industry. it was a similar merger spree, similar wave of consolidation in the meat is mess in the 1980's and 1990's. >> what is the relationship between these businesses and local farmers? they do not actually farm themselves. they farm out the farm. >> the typical system you're going to see today is so-called contract farming. a person like me who lives in arkansas might borrow $500,000 to $2 million to build a giant factory farm and then i sign a contract with tyson foods. tyson will deliver the chickens, the feed. under these birds

exact specifications of tyson foods. it is a remarkable model. >> it is like a franchise. >> exactly. like a mcdonald's franchise. >> there is nothing inherently wrong with this. this allows these companies to orchestrate their supplies. what has happened though is that you have this sort of vertical integration, if you will, coupled with horizontal immigration and the issue is, in these towns were spent months and years reporting, there is no competition. companies like tyson have monopolies where they operate because they bought up all the local chicken plants. these farmers do not have a choice if they are treated orally by the company. it happens all across rural america. can keep the profits and depressed with the pay for mates. -- meats. >> they did send us a quote,

talking about your book. saying, if a competitive industry that operates under the most intensive regulatory and inspection regime in america and still produces the safest, most varied, most abundant, and most affordable food supply in the world isn't good enough, then we challenge them to point to a nation with a better system. >> well said. europe is a third more expensive for food. what are they doing wrong versus europe versus asia? >> i don't point to another nation that does it much better. that nation is the united states in 1982. the top four meatpackers controlled 26% of the market. today they control 86%. if the quality better or worse than it was versus 1982? when you industrialize meat supply, you are not shooting for high-quality and high

variability, you are shooting for the middle range. i have seen that again and again. chicken, pork, or beef. they started using a growth struck a couple of years ago. >> that has been outlawed since then. >> it has. animal welfare concerns came up. they fed this drug to the animals even though it was proven to produce lower quality steak. they're driving directive is high-volume, consistent delivery, and cheap price. >> interesting. we have to leave it there. no doubt this debate will continue here on surveillance. "the meek racket" -- "the meat racket." >> the controversial book to say the least. the forex report. moves in japan. yen weaker, euro stronger. 140.55. i would also look at sterling.

sterling is stronger. look at that as a trend as well. adam? >> coming up on the next hour on bloomberg television and radio, the former chairman of ubs joining us on the u.s. economy. ♪

>> this is "bloomberg surveillance." on primaryans focus

politics, political battles. wait for december. the tim armstrong reversal on aol retirement plans, example of ceos overreaching. that lift ticket is the least of your worries, the ski industry prices into oblivion. this is "bloomberg surveillance," live from new york. tuesday, february 18, i am tom keene. joining me, adam johnson and alix steel. robert wolf, founder and ceo of 32 advisors. former chairman and ceo of ubs america, an advisor to the president. good morning. i have a brief for you, starting in the u.k.. inflation cooling in january, slowing to below the 2% target for the first time since

november 2009. over to asia, bank of japan ning program after a week gdp report. a: 30 a.m., empire manufacturing, some earnings still struggling out before the bell, coca-cola and duke energy. looks like a beat. after the bell, herbalife and panera. a busy day. companyl go right to news, a possible megamerger in the drug business. close to buying force lavatories actavisbillion -- close to buying force laboratories. am speaking the words, this is now official. i $25 billion, every time screen for revenue growth of

theseies in the s&p 500, companies show up. actavis, second largest global drug manufacturer is buying force labs. charter communications might go after cox after losing out on time warner cable. advisers plan to meet next week to discuss their options. cable the third-largest company with 4.4 million subscribers. continuing on, starwood capital ceo gets ready to sell shares, possible ipo for barry sternlicht. looking to sell a minority stake , sternlicht is reported to have been speaking to banks preparing to sell shares. moment --e >> this is very typically, two nations involved, transnational deal with dublin, ireland

working out of new york and new jersey. a stock and cash deal as well. i think you are more up to speed than i am, this is an industry of mating. most activectavis, buyer of pharmaceutical companies and last three years, made almost $50 million worth of bids. generic companies trying to continue to grow and eat up market share. puthe financing has been together, bank of america and mizuho securities. >> robert wolf, there is tax treatment and ireland, people get better tax treatment. we will talk about this, this has to do with transnational investment, no borders anymore. >> foreign direct investment into the u.s. is critical to our growth. as we will talk later, we have lost 50% of our market share of the last decade. china been taken over by

as the number one inbound investment. it is critically important that there is no moat around our borders. makingade is critical, sure there is no protectionist environment, immigration reform. >> this is a good thing? china wants to invest in growth and is coming here, we should be happy. sure those whoke want to come under our regulatory environment, that is a good thing. >> adam, the idea of mergers, starwood measures as well. rather, the ipo. outhere is a lot of capital there. when capital is available, you can do deals. rates are low, we are talking about a barry sternlicht ipo, talking about cox, forest labs. >> on the point that the market is recovered -- the resiliency -- be surprised by

acquisitions, organic growth is slow, the best way to move forward -- >> is that the best thing, the only option you have is to throw money at the situation? >> there is still debate about or below 3%. advisers isomic under 2% for this present quarter. >> you will talk about climate change, but the weather has an impact on the first quarter. >> there has been climate change in new york? >> you couldn't tell? >> that is why you are wearing five pound boots. >> my street looks like a third world country. >> you are a park avenue guy. >> i still live in purchase. new, a shorts the newsday except in washington. the republican party has solved until marchsis 2015. joining us live in new york, he watched all of "house of cards,"

get me out of washington. peter cook. i was admitting that i am still about three quarters away through the first season. don't ruin everything. cameo.anna goldman has a >> collects are stars in the show. looking forward to it. former senator of nebraska said too much of it is true. what are republicans doing, they are on pause as of primaries. >> they are running for reelection across the country, some of them having a harder time than others. mitch mcconnell getting it on the chin for his debt ceiling vote. they are talking about issues they want to talk about, including the health care law, including the state of the economy. they think there is a really good shot they will not only hold the house but -- >> they will take the senate. windows reversal occur?

-- when does reversal occur? >> a lot of republicans thought they were going to win the senate anyway, the odds were in their favor in the midterm election year. and a lot of things going against the president and the democrats right now. the question was could republicans blow it, another debt ceiling fight, another budget battle? john boehner made the decision we are not going to do that. that is what republicans are feeling pretty good. could they still blow it? absolutely, lots of opportunities in the primary season for a battle among republicans over the future of the party, not clear who will win. >> robert, you are a friend of president obama. who has a better golf swing? he is better than you? would you argue that president obama is more worried if opponents are more confident? -- if republicans are more confident? wayf you look at the last

for hours, then attacking the jobs recovery act is the wrong angle. stimulus during that time was needed and helpful. it helped create jobs and health infrastructure in this country. -- and helped infrastructure in this country. help us stay out of a recession and a depression. over the last 24 hours, they are going down the wrong track. >> within your sphere in the talk of the gop, how is secretary clinton's nascent run for 2016 going? is there an organization yet? >> there is a buzz, her supporters are getting together? >> is there only a buzz? >> to be determined. >> they are raising serious cash. >> they are getting organized. putting people actively in place a financial structure. >> "the new york times" said she

has booked up all the large donors, keeping bite into the to the keeping biden side. >> 2016 is a long way off. gop, we focus on the hillary clinton has to be the best thing that ever happened to the gop. collects they understand she would be tough to beat. you look at it both ways, she is powerful fundraising total for republicans. the same time, they understand she would be difficult to beat. >> is mitch mcconnell the same senator in washington as he is in kentucky? no, but in kentucky what he does in washington is hurting him in kentucky. his leadership is a weight around his neck. >> last week so.

even though he did the right thing. inhe still has a big lead his primary, i don't think mitch mcconnell will lose his primary. it will be the hardest political fight of his life. the last major poll i fell in kentucky had hidden behind the emocrat, allison m grimes -- allison london grimes. >> we like having you in new york. oner cook with us this week bloomberg television in new york. robert wolf as well. this hour of "bloomberg surveillance." are getting into the habit of apologies after embarrassing public appearances. we will talk about it. ♪

morning, "bloomberg surveillance." this matters now to robert wolf, chief executive officer at 32 advisors and a golfing partner of the president. he says they want to buy mr. wolff suggested the rest of the world should take a further interest in foreign direct investment into the u.s. it is down in recent years, let's start with why. why is fdi down? >> since september 11, we have

become more protectionist, we do not have immigration reform. some people say there is a labor arbitrage away from the u.s., some would say we are overregulated. we have little of law. >> where does foreign direct investment come from, the u.k., china? >> it is any foreign entity that uilds, buys, or invests in america. it is everyone, what we have seen over the last decade is that we have lost ground to china, now number one in the world. we have also lost ground to brazil and mexico and canada. it makes sense, we were north of 25% of all inbound investment. >> not that you would be anywhere in the vicinity of k street in washington, when lobbyists get together, what is the why? congress does not want fdi, is

our culture? >> i think at 32 advisors, we barryecently hired johnson who ran select usa, companies come in and it is not easy to navigate the laws, how do you make hiring. we have a very unique environment in the u.s., which is a great thing. people do not always understand how to come here. >> why can't they buy a minority position, a 7% position? wouldy can, often they like more. it is good for america. u.s. subsidiaries of foreign companies actually have over 5 million employees, 1/5 of our exports. they spend billions and billions it is in this country,

important to make sure we are allowing foreign companies into the u.s.. the u.s.ic on fdi in brazil, amongg in other nations. it is expensive to buy an iphone in rio de janeiro. we will look at that next on "bloomberg surveillance." ♪

>> good morning, "bloomberg surveillance." our twitter question of the day. would you rather watch the olympics or chew glass? you rather watch the olympics or house of cards? @bsurveillance, it is free. would you rather watch the olympics or "house of cards"? >> what about the usa-russia hockey game? >> cannot compete with frank

underwood. >> the whole sensitive thing, show me the event. >> i binged on it, "house of cards." >> those are your kind of guys. >> i loved it. >> he knows the washington of kevin spacey. robert wolf, this is "bloomberg surveillance." i am tom keene, our guest host is robert wolf. starting in thailand, two people were killed as police moved in to clear a cap of protesters in bangkok, a protester was shot as adjusters threw grenades. the protests began in october. inflation slowdown of over in the u.k., consumer prices rose 1.9% in january,

down from a 2% rise, putting inflation below the bank of england target for the first time in more than four years. a slowdown. making his debut as the host of "the tonight show" on nbc. he welcomed guests like will smith and u2. the return of the show to new york after 42 years on the west coast. bring it back to new york city, movies are being made here, now we have "the tonight show." >> much better on the streets of new york then la. >> you are going to get hate mail. >> i remember johnny carson playing both cities, he would make jokes. >> who am i? [laughs] >> santa? >> ed mcmahon.

ceosre's a question, are making more dumb mistakes or are there mistakes just more publicized with the internet? tim armstrong is the latest ceo after his distressed baby comments forced him to reverse the company's 401(k) policy, here is harvard professor and author of "what you are really robert kaplan. what happened that may ceos get so out of touch with everybody else? >> i don't think they are. on or timith lululem armstrong or others, there have been comments people would preferred they did not make. they tend not to make these mistakes. if they reflect a lack of understanding, they have got to come back and apologize and fix

the issue. that,have seen a lot of you mentioned chuck wilson, ceo of -- former founder of lulule mon. goes on. what makes a good apology? underlying reality is what matters at the end of the day, apology is fine and works if you suggest you realize you made a mistake, you admit it. issue andd fix the move on. if the apology is superficial and there is still a problem, the apology does not help. lulemon, customers understood it was a problem with the quality, that is why what the ceo said suggested he did not understand. with us, there is a difference between a screw up

going after someone's retirement plan. challenges will not go away. he backtracks on a retirement plan issue. i don'tt said it well, think the ceos are out of touch, they make the stakes like all of us do but they are under the microscope 24/7. >> up at harvard, what are you doing to teach students how notches to look at numbers but think about the consequences of their -- teach students how not just to look at numbers but to think about consequences of their actions. >> saying you made a mistake sometimes can be the first step in solving a problem. i am more worried about ceos who cannot admit they made a mistake then went to do. saying you were wrong and that ill address the issue is

important. a lot of ceos think it is a sign of weakness. that is wrongheaded and is going to get you in more trouble. >> what is the accountability of the board when a ceo does mess up? member, you think about is this an aberrant comment. forgive theu can ceo. if it is a pattern of being out are issues, there the board has to step in. that is what boards watch for, is this a one-off situation or a pattern of bad judgment by the ceo? if it is, the board has to decide what to do. >> in the case of mr. armstrong, these are ideas that are not properly vetted. of makingal challenge a mistake is year did not talk to enough people about the idea to begin with. case,ten, and armstrong's

it was not well thought through inappropriately explained. it makes sense to back track. ♪

>> good morning, "bloomberg surveillance." i am tom keene. with me adam johnson and alix steel. futures up 3, dow futures up 30. 4 day work week. >> comcast deal for time warner

cable hits netflix. stalling due to the proposed merger. under the complication for netflix, comcast focusing on movie downloads and rentals with its own platform. for the las vegas sands back up and running. hackers not the website off-line for almost all of week, criticizing ceo sheldon adelson for his comment's over iran. highng beefs up its new end galaxy, it will have a sharper display than the at aboutll be released the same time as the smart watch. a lot of asian buyers like and prefer large screen smartphones, something apple has struggled with.

samsung is meeting that demand. >> i just don't agree with this analysis, apple is minting money on a unit asis, samsung is doing great. i question the profitability of this strategy. of samsung's strategy. making a bigger screen works in asia, does it work in the u.s.? >> doesn't seem like the u.s. has the same kind, perhaps samsung doesn't care. >> do you follow @boygenius on twitter? was talkingpple, he about a new iphone coming out, the iphone 6, it will still be under 5 inches, 4.95 or whatever. owns the- galazxy large screen. >> i like the large screen. my eyes are starting to go. >> why don't we walk around with

ipads that happen to the phones? >> if it was that easy. >> and a bluetooth. i am crazy. justca cola earnings crossing as we speak, looks like an adjusted earnings per share was a wash, $.46 a share. volume, grew at globally about 1% for the fourth quarter. coca cola expanding productivity and reinvestment. >> what is productivity? cost cutting? >> we are still poring over the numbers, on the basis it looks like earnings-per-share just came in in line. net share repurchases of anywhere between two point $5 billion and $3 billion. >> pepsi is struggling to make

it happen. it is hard tobig grow and keep penetrating. >> you are paying 17.5 times earnings for a company growing at 5 times earnings. talking about the s5 phone in pointona, i wanted to something else out, apple opening a retail store in brazil. in rio de janeiro, hope i said that correctly for those of you who speak portuguese. a little pricing problem, if you buy your phone in rio de janeiro, it will cost you a staggering amount of money. guess what it costs. >> i know. robert wolf? >> former head of ubs. >> $740. $1,100. 5th avenue,uy it on

$200. some of the highest priced iphones from around the world. some of that is because of import duties. >> very quickly, betty liu with what you have today. >> i am stocking your -- i am stalking your set. on pepsi and coca-cola, look at the charts. bottled water this way, so the sales that way. that is the way people are consuming. >> getting healthier. loop"our program, "in the in half an hour, leo hindery. did anyone watch "the tonight show"? >> i went to bed at 7:00. ps, hilarious.li >> i dvr'ed it. is going to be

on. they should have the "surveillance" crew on "tonight." >> data check on a mixed picture between futures and bonds. >> good morning, "bloomberg surveillance" on bloomberg television and bloomberg radio, streaming on your tablet. all things digital, including apple tv. --m tom keene, will meet with me is adam johnson and alix steel. robert wolf, founder of 32 advisors. news, actavis $25iring forest labs at billion. cristina alesci, what is your take away? >> actavis felt like they needed

to get into the branded space. for growth potential, they felt they needed to be in the branded space. has an alzheimer's drug enabled pleasure -- and a blood pressure drug doing quite well. companies are done with returning capital to shareholders, increasing dividends, now they want to see growth. activity,ay more deal especially when it comes to the pharmaceutical space, pharmaceutical companies are no longer pouring money into r&d developing products organically, they are going out and trying to buy growth in the market. up,om brought this transnational aspect of the deal. what are the regulatory hurdles that might come up? anything?

>> in this deal, we are not going to see too many regulatory hurdles. the thing is that the government wants to see foreign investment in the u.s. >> that's what robert wolf was saying. history ofhas a going out and doing cross-border deals, they are very well-versed in how to get these things done. >> robert wolf, repeat why it is so important to have foreign direct investment coming into the u.s. >> we were talking earlier -- it was a job creator. of the foreign companies that have u.s. subsidiaries, they spend $40 billion in r&d and have created 5 million jobs, 20% of experts. building, buying, investing in america helps us grow. >> that is the best argument i have ever heard for immigration reform and making it easier for smart people to come to america. >> the interesting thing on anavis, historically it is

american company. it was called watson pharmaceuticals, they ended up buying a dublin-based company to get around us taxes. >> no territorial tax there. >> there has been discussion about fixing the corporate tax rate in america, that has to get through congress. >> carl icahn was tweeting about this, second-largest shareholder of forest labs. "great results." he has been on the right side of a lot of deals recently. this industrygest has been a train wreck for 20 years. >> the pharma industry? tina used to be in the industry, this is the detritus of 30 years of regulation. not entirely, the industry

has been challenged on the innovation front. they developed all of these pretty easy to produce drugs that cured a lot of -- cholesterol problems, viagra, blockbuster products that generated revenue for a long time. now they have to go out and solve bigger problems, like cancer, that takes more time and money. now that the industry has made bank on the solvable mass problems, they have got to go out and solve the bigger and more difficult problems. ahn isx mentioned ic please. >> it is amazing, apple, netflix, one after another. >> not so great. , dow futures 2 up 30. cristina alesci, thank you so

much on actavis. >> samsung unveiling a larger phone next week. talking about how this will impact the smartphone wars. samsung sells./ ♪

>> this is "bloomberg

surveillance." i am adam johnson with tom keene and alix steel. snowing again. >> again, again. >> down 3rd avenue from our studio, snowing again. you have got a choice. you can get on an airplane and fly to denver while you still can, go to vail and get a season pass for $689. or get in your car and head to armont and ski at family-owned resort, you can have a wonderful day. for hours toyou get to vermont, why would you go to vail? of thesk the president okemo. do you get people to go to vermont when they could fly out to vail? what is the value proposition? >> difference between flying and

driving. 4 hours from new york, 2.5 hours from hartford. three hours from boston. a lot easier to drive than it is to fly and cheaper, too. these are you proposition and the quality proposition -- these value proposition and the quality proposition is that it is closer and easier to get to. >> in a year like this when you don't have to makes no, what does that do to the profitability of a mountain like okemo. snow making, we don't need to have good conditions. we just invested and started a investedhis year, we over $1 million in technology and snowmaking. between snowmaking and the snow we have had, which has been good, we had a great snow storm

this last week. skiing is great. >> you think i am expensive. >> we took the drive, we went to okemo for five years. my family was skiing. >> are people doing the drive like they used to? are people skiing 10 times a year in northern new england? >> yes, depending who they are. skiers, you have people that ski every weekend. there are second homeowners here, they come up more often. who, one or people two weekends a year, maybe for christmas or vacation and ski. year with lucky this all the snow, two years ago it was a wasteland. -- whenyour business

does your business start to suffer? >> sorry? >> when does your business start to suffer because of the weather and climate change? >> the reality is, up here in northern new england, i cannot really say over the 30 years we have been in the business, that the winners are different. no winter is perfect. >> sorry, we have to leave it there. thank you for talking to us. ♪

oncoming up tomorrow "bloomberg surveillance," a ,onversation with john scully ceo of apple on technology forward in 2014. this is "bloomberg surveillance," i am tom keene. with me, adam johnson and alix steel. robert wolf, ceo of 32 advisors as well. some company news this morning. topping its forecast for playstation 4 sales, they sold more than 5.3 million of the game consoles through february 8. forecasting sales of 5 million consoles by the end of march, the playstation 4 goes on sale in japan this weekend.

charter communications michael after cox after losing out on time warner cable. charter, along with liberty media as john malone and advisers plan to meet next week to discuss options. cox is the third largest cable company with 4.4 million subscribers. managers at hewlett-packard new about autonomy's accounting methods months before whistleblowers exposed the practices according to "the financial times." managers were alerted to the practice of selling hardware at a loss. more bad news for hewlett-packard when it comes to this deal. and on.es on 2014, lots of dealmaking. and when her that 13, a really did not happen. activists at forrest laboratories -- activists at

laboratories.che starwood capital, barry sternlicht after this hilton transaction. is the pace picking up? >> the economy is picking up, interest rates are still low. robert wolf, you ran banking at ups, that is the perfect scenario. near all-time market highs, you have a little concern on organic growth. people want to look at the capital markets as a way to do acquisitions. it is not surprising to me. >> to dovetail and your washington experience, we might -- this is aical year where we might have fiscal drive. >> the debt ceiling debate is over -- >> no sciquest nation -- no sequestration. >> sequestration worked.

of what it is 1/3 was several years ago, half of last year. up the script. robert wolf, we sell the time warner cable deal. to falla deal is it down the league table? do you say it was a bad outing in golf, not that you ever have one. is this a huge deal? >> i think goldman chose to support liberty media, they are a great firm. they are very inquisitive. be inss is they will plenty of deals by supporting that deal. >> not a lot of yelling and screaming when you go from number four to number six. >> you have time warner, comcast, you have charter-liberty, now you might have cox, those are going to the big deals and big names.

because of the conflicts, you will own one of the names, goldman is sticking with liberty. it is a smart move. >> do you see a consolidation in american industry? it seems that is what we talk about, fewer players. >> bigger is better. with the ability to have synergies and cost reductions. >> in what andrew shreves -- in what industries, we are looking pharmaceuticals, can the crash. where do you see the most activity? , youch is most interesting see apple and samsung and google looking to make small bets on entrepreneurs. whether they are small $1 billion deals, they could be the next $10 billion company. industriesout just 4 -- cable, telephone, airlines, and meat.

totally unrelated, yet there are either three or four players that command 80% of market share in each of those. >> it is the government blessing. >> not to know -- nice to know fail is not only in banking. >> soros has doubled his sure of the s&p. you have individual companies people are making bets on, the overall index -- >> that is what makes the market, we had the article that return on thes' equity markets. 2013. coming off of i have notto date looked. the s&p is down less than 1%. you would have thought the world was coming to an end. >> last week was a good week.

we all got so accustomed to the sugar and the fed holding our hands. anytime we went down 4%, no problem, bernanke put was alive and well. that is why we all freaked out. >> we will have very choppy markets in 2014. it is not going to be one way like 2013 where we were up 20% plus, there will be a lot of winners and losers. >> time for the agenda. >> japan, early in the weekend, maybe it is old news. of thiss, the dynamics is interesting. their animal spirit is up, also up with abenomics is deflation, flipping to inflation. that changes the math for japan internationally. it really changes the math for japan domestically. they have got a brand-new thing, lower real wages. lower inflation-adjusted wages

in japan, behave early for japan this is a whole new thing. the careful what you wish for. it is a classic example. >> we need to see it first, we have not seen inflation in years anywhere in the world, very interesting to see what inflation does for a country that has zero inflation for the last three decades. for europe,est tube particularly. this really bears watching. japan, the poster child for lack of inflation as you pointed out. for three decades now, turning the quarter. >> you have to lead us for radio. >> we will talk about japan. an hourreported half ago, the standout is the profit fell in the fourth quarter by over 8%. looking at a cost cutting program to boost growth. you are not seeing topline growth, companies have to continue to take cutting

measures to meet estimates. earnings came in at $.46 a share, no real suprise. hoping for $1 billion in savings by 2016. 17.5 timesat earnings with 14% growth. my agenda, s5 galaxy. in barcelona at the world tech congress, samsung will debut a new phone with a 5.2 inch screen, a sharper display. going head to head with apple. samsung sells one in four smartphones in the world. what was it you said about the smartphone debate apple versus samsung? >> i have an apple. >> but you like big screen. is readirst thing i do my ipad, i like the larger screen, my fonts are very big. >> our twitter question of the day, would you rather watch the

olympics or "house of cards"? "house of cards." "the way underwood manipulates the white house is more intense." " no question/" robert, you and i didn't watch -- i binged watched. >> i have to admit, hockey was incredible. hashtag #doyoubelieve. >> do "house of cards" after that. >> the one goal didn't count because the goal moved. >> it is rule of law. >> no hometown bias. what a pleasure to have you, robert will. >> thank you, i appreciate being on. "surveillance" on radio will

continue. "in the loop" is up on bloomberg television. ♪

>> we are live from bloomberg world headquarters in new york. it is tuesday, february 18. getting you caught up on the top stories this morning. a huge deal in the

pharmaceuticals industry. i am forest labs for $25 billion in cash and stock. the second lark -- second-largest generic drugmaker. carl icahn lobbying for change at that company for years. coca cola says fourth-quarter earnings fell and is starting -- starting a new cost-cutting program to boost profits. they have a slower growth in emerging markets. addictive maker -- the maker of the addictive game, candy crush has filed for an ipo. it will list shares on the new york stock exchange. my guest host for the hour, media investor, managing partner of private equity, in turn media area partners. all of