that would be this morning's jobs report. good morning, everyone. this is "bloomberg surveillance ." live from a world headquarters in new york. it is job stay. scarlet fu at adam johnson. we have a lot to talk about, a lot going on. jobs day here. a wonderful lineup. let's head to the morning brief. >> lots of overnight news. we are starting an shanghai. the first chinese phone to default on its onshore corporate bonds. in eco-news, it is all about the jobs. economists are forecasting unemployment will hold steady. it might be skewed by the cold weather. that comes out at 8:30. fxot locker, big lots, and s

entertainment. >> saturday night, we lose an hour of sleep, all of us. >> am i springing or falling? >> springing forward. >> so right now it is 7:00 a.m. let's get a data check. stocks, bonds, currencies, commodities. five years, yesterday. sunday will be five years on a closing basis. >> 10-year yield. 1.3887 -- ever stronger euro. let's look at the litmus paper of the system. a weaker ruble. yen blows out stronger.

let me go to the bloomberg terminal. weakness in the ruble. here is the intervention by the russian government. they have somewhat given up here with the latest news and tension , starting about 4:00 p.m. yesterday afternoon. last a weaker ruble in the 48 hours. we start with the papers and the weather this morning. here is scarlet fu. >> the latest is that russia tol embrace crimea's move secede. >> choice words. >> crimea's parliament voted in favor of secession yesterday. crimean'san 60% of are ethnic russians. they may want to be part of russia. >> they will get to cast their vote on march 16. khrushchevlike

saying, ok, you were part of russia. curiousnow what is also is that of crimea goes over to russia, crimea is no longer part of ukraine, therefore you lose russian ethnicity in -- leverage in ukraine and therefore ukraine becomes ukrainian. >> it cuts both ways. >> we will actually go to kiev in a few minutes. our second front-page story is a big grocery deal that is raising some eyebrows and antitrust questions. of $9 billion. there will be an antitrust review. create a company

with footie 400 stores, just behind kroger -- 2400 stores, just behind kroger. >> it is all about competing. we all live in an amazon world. everyone is competing with amazon. even walmart. >> i was going to say come are the competing with walmart or amazon? >> walmart food. >> amazon is coming up really fast. >> with the run version. is a two-hour adventure when you have to search for parking come a fight for a shopping cart. i spent $300 or $400 every time i go. >> our kitchens are too small to have to worry about going to costco. that is the beauty of living in new york. >> i need a sailboat when i go to costco. >> japan's cabinet as cracking

down on bitcoin. this comes in the wake of the of the bitcoin exchange based in tokyo. it brings us to the other story that has the internet abuzz. did newsweek track down the actual founder, the guy who created bitcoin, satoshi nakamoto? newsweek said he is a japanese-american physicist living in los angeles. dorian nakamoto spoke with them, but said he only heard of bitcoin three weeks ago. reporters were chasing him in a car. everyone is a flame. >> it should be clear. that he is alleges the founder of bitcoin. there was a lot of debate yesterday. a scarlet points out, he is effectively denying it. you can understand why. there were dozens of reporters. >> is he and matt miller's rolodex? >> no.

he is not. >> those are the front-page stories. >> we have lots to talk about today. it is jobs day. -- he ryan from london continues to observe the events -- how does key f observe the tensions -- kiev observe the tensions? did they scuttle a boat in the black sea to block the ukrainian navy? how did that play in kiev? >> they are not happy. there is a sense that what is happening in crimea is very much outside of their control. it is really up to vladimir putin. they are hoping it is not going to go beyond crimea. planat is their fallback if crimea splits away from ukraine? what then does western ukraine

do? know, in terms of the economy, it has always been part of the country that has taken more than it has given. that perspective, it would probably say good riddance. the fact that they had this vote -- the parliament has decided to secede, just to be clear. inhas to be this referendum nine days time. assuming that they do vote to join russia, that does not mean that russia will take them on board. russia may want to keep it as a state-let. day, crimeaf the will find it very difficult on the run or as part of russia. they do not have any access to fresh water of their own. they are isolated.

they want to build a bridge to connect to the rest of russia, but that is a couple of years off. >> the new head of parliament for ukraine has had eight days in office. how much support does he have from the people on the street as you walk around kiev? >> that is a darn good question. he is respected as a technocrat. he said he would be this country's least popular prime minister ever. they were looking for a change of the system in independence square. it hasn't -- has been a very corrupt system. they did not want to bring him into office, if i can put it that way. wanted to prepare for the elections that will happen at the end of may. most people who participated in the events, the kind of see him as part of the old elite, just another one of them.

thisare looking forward to presidential election at the end of may to bring in something that they would really like to see in power. >> thank you so much. is the chieft financial officer and managing partner of finance administration. us is michelle meyer, senior u.s. economist at bank of america merrill lynch. michelle, let me cut right to the chase. what will you and your team look for at 8:30 this morning? we are forecasting 115,000. we are below consensus. the room for error is particularly large because of the uncertainty. how will weather play a role? how will the services economy

filter into jobs? >> i want to bring you in as well. the uc wage growth? -- do you see wage growth? is there actual wage growth? >> a little. not that much. there has been some wage growth over the last year. what we see are hiring in energy, technology. is still pretty strong, notwithstanding the last month. particularly technology. the fed is watching for the unemployment rate. be looking at wage growth, which has a better correlation with consumer spending? >> they are looking at the unemployment rate as a way to measure for wage growth. is challenge in this something we have heard from

numerous fed officials -- the unemployment rate is not the perfect measure of the labor market. the fed should move away from using -- was justl mckee brilliant on this yesterday. they looked at the 6.5% unemployment number -- he said, wait a minute, we don't care anymore. >> they said that should not be the focus. they should move to a more qualitative approach. of labor market indicators and that seems to be the right approach because frankly, we do not know why the unemployment rate fell so much. is it a function of a tricky labor force and hence that will come fast? >> we call this gilda ratner economics. "nevermind." a corporate default rattling china.

chaori failed to make the full due on its onshore bonds. trend of chinese companies who is double their equity. that china'sal government will no longer backstop companies. >> bowling will shift pension payments. will shift-- boeing pension payments. workersge for boeing takes effect on january 1, 2015. ford rewards alan mulally for a record year. 13 $20 million in stock for last year's profit. the stock is just part of his compensation. the rest will be disclosed later

this month. i don't know if you saw matt miller posting on twitter. mulally wherean he is picking up his new custom ford raptor. kind of cool, right? >> where would i put it? adjacent to your kitchen. >> parking a car is like $200,000 per year. tries to showbama some spine against russian president vladimir putin. we will be discussing it with peter cook. thinkhree words do you best describes vladimir putin? this is "bloomberg surveillance ." streaming live on your tablet, phone, and bloomberg.com. we will be right back. ♪

>> good morning, everyone. "bloomberg surveillance." coming up, we are celebrating international women's day. ofis a special edition "market makers." be sure to tune in as eric and stephanie interview jpmorgan's chief financial officer and iconic magazine editor, tina brown. this is "bloomberg surveillance ." i am tom keene. it is jobs day. i am with scarlet fu and adam johnson. thee are staying with russia, ukraine, u.s. story. president obama was on the phone with president putin for an hour. >peter cook joins us now.

was this the second phone conversation held between the two presidents? >> it was the second phone conversation since this crisis really kicked off over the last couple of days. they spoke over the weekend as well. this was a call where apparently things did not go all that well. they are not on the same page. for the most part, it sounds look they are talking past each other. we had a readout from the white house. the russians are violating ukraine sovereignty and territorial integrity and we had a response back in the russian readout him a russia cannot respondalls and must accordingly. they talked about the differences in the situation, an understatement to be sure. >> by the same token, they spoke for 90 minutes over the weekend. they may be talking past each other, but at least they are talking with each other, isn't

that the other way to look at it? to lookis the other way at it. you have to factor in translation. it is not quite so much time as you might think. perhaps more important, the end of the russian readout. it said that putin and obama agreed to have their foreign ministers continue discussing these issues. they have had several conversations over the last couple of days. that is the best opportunity for a diplomatic solution. they want to get the russians in the same room as some the newtatives from ukrainian government. the russians have been unwilling to do that up to this point. >> elaborate on that. what do you think really is the critical issue where they are able to find some sort of common ground and bring putin and obama closer together? >> it has been really interesting to watch. over the last couple of months, sergei lavrov and john kerry --

they have spent a lot of time together. they have been dealing with the wrong, with syria, you can see they have differences on a lot of issues, but a certain amount of mutual respect and admiration. you have to remember -- think about how much of that is on the line? that personal bond has not resulted in any deal over ukraine and we will see if it does. >> peter cook, thank you very much coming to us from washington. our twittergs us to question of the day. what three words best describe vladimir putin? you can be creative, but keep them clean if you want them read on air. >> we will discuss this on "bloomberg surveillance." it is job stay. we will look at the american labor economy. we do that coming up next. it is "bloomberg surveillance." stay with us. ♪

>> good morning, everyone. "bloomberg surveillance." betty liu will have the jobs report for you this morning on bloomberg television. adam johnson has the top headlines. >> we will start in venezuela. a soldier and a civilian were both killed in a clash. opposition demonstrators barricaded a street in caracas. the violence brings the death toll to 19 in the past three weeks. road tests are happening throughout the country. speaking of protests, turkey may the presidents

damagingstop leaks of video and audio clips. the man who saved the careers of hundreds of baseball pitchers has died. he invented the procedure now called the tommy john surgery. tendonaced a damaged with one from the other arm. it has been performed hundreds of times since. he was 88 years old. >> he is worshiped in baseball. >> he certainly is. >> appropriate to and with that small tribute to dr. jobe. >> michelle meyer's with us to read frank friedman with us. of deloitte. here is my morning must-read.

lost 2.3ng market million workers in the construction industry from peak to trough. hiring started to pick up modestly in 2011, but only 490,000 construction jobs have returned. >> we cannot blame the weather on that. you are seeing a big increase in job openings. modeste seen only a increase in hiring for construction workers. home builders are finding a hard time finding appropriate labor. >> is that because of immigration/ a lot of construction workers come back to a different country? do we need to rekindle immigration to build houses? factor.nk that is one homebuilding was at extraordinarily low levels for a

long time without much hope for the future. a lot of workers in the homebuilding space during the boom have left. they have found other jobs. we have to find a way to get people back in and looking for construction work. >> that is something we will continue to discuss, especially with this jobs report coming out at 8:00 a.m. -- 8:30 a.m. >> i will be looking at median duration. >> labor force participation. rate ing up, the birth america is falling, but spending on kids is going up. ♪

>> good morning um everyone. "bloomberg surveillance." i am tom keene. jobs day. futures up 29.

let's do a data check. stocks, bonds, currencies, commodities. i'm going to go right to currencies. look at the euro. this is a huge deal for germany and europe. talk about unintended consequences. ukraine and crimea. we have a 1.39 euro, that is all you need to know. here is a data check this morning. >> let's start with staples, the biggest drop in almost two years. 15%. the company came out and said it would do a bid to consolidate, close to hundred 25 stores. stores.225 >> there is no earnings growth. analysts and investors do not like it. ok, fine, earnings are shrinking, but they are cheap. >> there is plenty of cash flow as well. >> this is just an incredible topic.

i love that the reviews on amazon -- not bmw quality. isn't that a car? >> we are talking about little cars for little people. americans are having fewer and fewer children. the ones who do have them are paying more for them. the birth rate is at a record low, while the baby product industry has climbed to $49 billion. where are our dollars going? why must every family have three strollers? good morning. >> good morning. >> this speaks to the expense of raising children in this state and age. are people spending so much money on strollers and the like because of kids or because there are just fewer kids? from my perspective, we have been able to sell. populations and

, inhrates have been static germany the birthrates of actually declined, and the u.k., they have increased -- people do by 1, 2, 3 strollers. we are always purchasing a second purchase. we can share a number of stories. , people arepective buying more expensive products and their buying accessories. the market is pretty broad. we sell a number of accessories. >> i am still working on the girlfriend. [laughter] explain to me why i would actually want to buy three strollers. >> it is a matter of perception. you would normally associate a first purchase with a larger, pram like travel.

as they start to use the stroller -- >> are you kidding me? >> this is how it works, tom. >> here is the answer to your question -- because she wants to. this is an emotional deal. ugly world out there. your baby needs to be protected. right? >> i am in the camp of three strollers. you need [laughter] -- [laughter] large stroller for city living that has to protect the child, deal with bad weather conditions, etc. then you have the car seat stroller in case you were driving somewhere and the umbrella stroller for traveling. you get convinced that you need all of these different items when you go to the stores and you read the blogs. >> what is new? >> for my perspective, all of these are at mclaren. >> plug. >> plug.

mothers make the buying decisions in the household. fathers are playing a bigger role in active parenting. how are you playing a role? >> we went to bmw. we are reaching out to other users. we have a number of other people who are interested in strollers. >> take a moment. we need a new york yankees and boston red sox strollers. >> this is part of differentiation. differentiation at its best. everybody is doing it. many are winning at it. how does deloitte advised maclaren to differentiate even further? >> taking it back 20 years. it is all about what she wants. it has nothing to do with anything else in my mind. product differentiation -- apple might be the biggest innovator and differentiator in the world.

it is about what people perceived to be and what they want to buy. it is about how to develop perception, what is invoked him a what is important to have. does the stroller of the future look like? will it have a connected device when the baby needs a diaper change or how many hours they have slept? >> that could be. from our perspective, it might be a lot more interaction. it might be knowing if you're stroller needs a repair, how many miles it has gone. >> "surveillance" exclusive. looking at the baby walking down the street, do you push the newborn front and center through the crowd? >> i still look at the baby. >> that will change. by the third child, you don't even look at it. [laughter] i want to congratulate you. your strollers are sized correctly. your competition are making these humongous strollers that really get in the way.

are you compelled to make an average enormous stroller or are you going to stay with the classic? >> it is all about social mobility. since 1965 when the stroller was first created. for us to have a huge stroller that has no utility is pointless. for us, it is always about our grassroots. >> what are you buying? aclaren accessories. >> sure, sure. it goes back to the functionality of the product and by creating a range of accessories that can complement that. >> i know you said you did not see the effect on the falling birthrate on your business. one in five american women did not have children. what does this tell you about this nation? >> from my perspective, women are also having perspective --

children at a later date. women are working. there are social changes. from my perspective, if women are having children into their late-30's, 40's, that is a good thing. >> what is the next change that will be most significant? what are you looking at? >> we will see emerging markets. we have been there for a long time. we will be trying to engage with them. >> what is going on in china? been trying toas engage with them, making sure pricing parity exists. people in china know how much -- >> i was over in china 2.5 years deered it took john several years to get approved. the chinese government wants to make sure -- >> are you talking about a green and yellow john deere baby stroller? [laughter] , apple had asly

hard time doing it. how easy is it to get the chinese to say, we approve of your product? >> it is never easy to do that and one could never be presumptuous. it is all about engineering. setting it up for decades. the brand is known. it is now, how can we connect with the chinese consumer? .> excuse me paris fashion week, london fashion week, new york fashion week. how far are we from a valentino stroller? >> it hasn't been done by valentino, but another merck -- a number of other fashion houses. ,e're looking at a new product very exciting, with a fashion house. withve had collaborations burberry, lacoste, a number of other design houses.

>> [laughter] >> this is incredible news. >> this has been an education. i did not have much to say. >> forget about jobs day. [laughter] >> the ceo of maclaren. >> thanks for having me. be seeing another unintended consequence of the affordable care act. this time it is in the jobs market. this is "bloomberg surveillance ." we are streaming live on your tablet, your phone, and bloomberg.com. we are everywhere. we will be right back. ♪

>> good morning, everyone. "bloomberg surveillance." it does not get better than job stay -- jobs day. the ice flows are coming down from albany. they are bumping into the statue of liberty. i am kidding of course. >> it is done to the wire for comments on the keystone pipeline. today.he end of secretary of state john kerry will then offer an opinion. after that, president will decide whether or not to approve the pipeline. high.oars to a six-month

deals for the grain have jumped fivefold. the u.s. is the top shipper of corn, followed by brazil, and then ukraine. johnny manziel inked a deal with nike. he signed a marketing contract with the company. nike beats out the adidas, under armour, and new balance which also had a bid for his marketing rights. he is projected to be one of the topics for the nfl draft in may. those are your top headlines. >> he is out of school. >> he won the heisman trophy last year. he played with some controversy. he is going up for the draft. topic, frank? >> no. >> too small? >> like i'm a football expert, but no i think he is too small. >> heisman trophy.

there are a few open spots. eli manning maybe one of them. [laughter] >> what about the script? he is from college station. it is time for the single best chart. >> are single best chart is from jobs and health care. and the link between the two. 85% correlation. the white line is health care job growth. the yellow line is health care cost -- cpi. it is on a six-month lag. >> brilliant. >> consumers are internalizing the cost of health care. over the long-term, maybe some more productivity. this is a structural problem for now. ortzag has been way out in front of this. he has been adamant for a change in the path of health care. >> they are both going down.

this is the best chart. i want us to see it. this is the best illustration i have seen yet of why we need inflation to read you have health care cpi going down and job growth going down. your take on this link between inflation and jobs. >> you look beyond real spending on health care and you would also see a drop. it is not just a function of prices falling. it is the fact that people are terms onless in real health care. it does show a demand shift. that is part of the reason we are seeing downward pressure on prices. i would certainly be looking closely at health care job growth. the past two months have been particularly weak. i think it will be an important question. is it a short-term weakness or is there something more structural? >> and certainly not the weather. it may belong run, bearish today, but we should be

bullish on health care in the long run. we will see job growth continue to grow in the long run. >> we have the equities of health care stocks. straight up with the affordable care act. how do you explain great stock performance with the delays, delays, delays we see out of washington? >> i think it is anticipation. >> anticipation? >> getting in front of it. you do not want to be the last guy. >> in the next hour, we have ec ezekiel-- ec keel -- emmanuel. >> brother of rahm emanuel. it will be interesting. what do you see day after day at deloitte? -- we deal with 70% of

the fortune 500's. frankly, the aca is not impacting them. it is a little administrative cost. it is not for the large companies. i did a seminar were asked a number of fortune 500 cfos what they thought their benefits would be in a few years and face it, we might not be providing benefits 10 years from now, we might go to the exchanges. emmaat is the theme that nuel brought up in his book. we want to come back to talk inut which sector frank sees hiring and firing on this job stay. we will be right back on "bloomberg surveillance." ♪

>> this is "bloomberg surveillance." i am scarlet fu with tom keene and adam johnson. company news from the files of "bloomberg west." patent is going on a binge. 900 patents from ibm for $36 million. 00 filed patent applications. all of this is courting --

telecom italia drops its dividend. telecom italia posted a four year net loss of $934 million. they have been working to upgrade their networks in italy and brazil, while trying to cut down debt. talk about rushing to the top. john chen has held talks with white house officials to make sure that his smartphone is still their cell phone of choice. >> as part of my meeting customers, i have briefed the white house from an i.t. perspective. we spoke to them. shareere nice enough to with me. >> chen has met with or spoken to more than 100 clients since taking over in november. blackberry's shares are up 56%

since he took over. userany of you blackberry? >> not me. >> i do. mine is mandated. >> i need to keep my life separate. >> there is a security to the blackberry messaging system. >> i just have a comment. john chen going to the government as if the government is going to save blackberry. the new take on no one ever went out of business. tough week for retailers and for jobs. staples closing 225 stores. radioshack is closing about 1000 stores. add those up, that is a lot of jobs. space in america's high skill jobs economy -- things are a bit tighter. the chief financial officer of deloitte is with us.

as you hire people into deloitte this season, how competitive is it? >> it is competitive today and it was competitive two years ago. we will hire 19,000 people this year. -- we go onires campuses, it is very competitive. we are competitive with the other big firms. we are finding students, we are finding the skills that we need. day isany of the jobs about medium duration, labor participation rate, part-time america, full-time america. your people are working 60 hours a week, aren't they? there is a part of america who a 60 40 hour workweek with

on the end of it. >> it is our busy season right now. we make a lot of our money right this time of year. year,hout the rest of the it is a 50-60 hour workweek. >> you talk to a lot of cfo's. how involved are they in these decisions? are they a driving force in wage growth? do they predetermine limits? how creative are they? ifbusinesses are successful they are creative, if their innovative, if they can deal with the population of people they have to deal with. if they don't, if they just try to stay, we are going to limit the pay, we are going to limit everything, they will limit their growth in the future. >> that chart we just had up on full-time america -- here is the part-time america chart. part-time america is getting a little bit smaller. it is taking forever to find

full-time jobs. why? >> that is the nature of this business cycle, the nature of this recovery. it has been a challenging labor market. people have been forced to work part-time because of economic reasons. they would like a full-time job, but those opportunities are not available. that speaks do under motivation in the labor market. part-time for economics or -- marginallye attached workers -- that is where we talk about hidden slack in the labor market. that is where it appears. >> you talk about the tension between part-time and full-time -- i just tweeted out -- frank friedman at deloitte telling us you are hiring 18,000 people, tell deloitte you need a job. >> these are full-time jobs. servingusly, you are customers. who are the customers who are growing their businesses that therefore require your services? >> right now, it is across the

board. sectors.nd 21 16 of them are growing right now. they are growing because the clients are demanding services from us. technology, health care, notwithstanding some of the charts we saw before. media, telecommunications. it is across the board. retailers. they are hiring us. >> they are growing. >> they are growing. >> one more question for michelle meyer. would you look for at 8:30 this morning? what is the economic statistic i need to pay attention to? >> can i give you two? i would look at average yearly earnings. that will be really important. then continue to look at the labor force participation rate. that is extremely important for getting a sensible to mentally where the labor market will end up. >> thank you so much for being

with us. get back your clients at merrill lynch. frank friedman, thank you so much. the forex report. it is weekend off the news. -- weakened off the news. ♪

>> the russian federation will

embrace crimea western leaders as moving forward together. let it go. that would be this morning's jobs report. the new sats. say thege presidents sats are the only things that really matter. good morning. we are live from our world headquarters in new york city. i'm tom keene. joining me, scarlet fu and adam johnson. the former senator from nebraska. also the managing director at allen and company. an important book on health care. he is one of the architects of the affordable care act. lots to talk about. let's get to the morning brief. >> here's what we have.

i'd of shanghai, the first chinese mainland company to default on its corporate bonds. this is after failing to pull -- pay full interest. today.ports coming up economists forecasting unemployment rate will hold steady at 6.4%. we have a couple of earnings -- foot locker, big lots and sfx entertainment. >> company news. grocery business. a big deal. being bought for $9 billion. able create a company with one to 400 stores, just behind kroger. they will conduct an antitrust review. the stores.ing at more details on that story that

adam mentioned. the corporate default rallying china. they made to make the full interest due on their onshore bonds. the first default ever for a chinese company. analysts say the default sends a signal that china's government will no longer backstock companies needing help to meet their obligations. forgiving it ceo $4 million in stock for his record performance . the stock is just part of his compensation. the rest will be disclosed later on this month. that is today's company news. >> a busy day. job stay. the news flow out of crimea. ukraine and russia is exceptional. it was extraordinary to see the series of headlines -- michael l described it -- his book was a

must read. real do have you on this morning. boat from athens into the black sea. what is the hard power production of the united states into the black sea? >> i'm not a fan in this case. not a fan of any kind of military insinuations or signaling or anything of the nature that you just mentioned. i would probably oppose that sort of thing. i believe we have to be very credible at the sorts of things we might really do in this case. you are consistent with our natural -- national interests. it's just not worth american military intervention over anything that has happened so far or that is looming. it's not a big deal to send one ship over there. i would be pretty wary about that kind of measure because it looks like bluster. it goes back and forth and feeds into a cycle that we have to try to slow down, not accelerate. it is all putin's fault, but

that on response won't help. >> linking the bluster between military projection and diplomacy. what is the washington diplomacy now? is there a washington consensus? >> there is generally a consensus not to use or suggest the possible use of military force. there were a couple of exceptions to this. i was struck by where they came from. nato ready its reaction force. i don't think he was saying we should go into ukraine with that force but he wanted the russians to have some doubt about what we might use it for. i don't agree with them. i think that is not the right way to go for the reasons i just mentioned. the former national security advisor made some similar suggestions. generally speaking, people of said, we have to reinforce our nato allies. in the baltic states and poland

-- i agree with that. e are sworn to their defense. -- boudinto ask you and obama have talked twice and obama haven talked twice already. what would those talks be like? -- presidentpe putin is in the wrong here. if president obama read henry kissinger's article yesterday -- i thought he had some good ideas , including some more significant face-saving than anything that the white house has offered so far. for example, ukraine could pledge that it has no interest in joining nato. even this current government could make that pledge. some people would say, why do they have to force that option? they have not wanted it historically anyway.

it is close to russia and nato is seen as a competitive alliance by russians. there are plenty of ways for us to show off ukraine security without talking about that. a couple of ideas to go with that a. >> that goes to our twitter question. >> what three words best describe vladimir putin echo read us your responses. we want to hear. we are thrilled to bring you -- a naval officer and a decorated one at that. bob kerrey, i think of the senator from nebraska who is now the secretary of defense. we can have this both ways. we can't have the bluster. it and defense cuts at the same time. >> we certainly can.

when you're cutting back on the fence, you don't really advocate -- i completely agree with what he just said. the good news here is neither the russians nor americans want to go to war over ukraine. the europeans, who have a lot more at stake economically, are moving to tighten the energy with them and saying to russians, there will be economic consequences. i think those will push russia to be more reasonable. at this is a difficult problem. blood.s a lot of bad >> does your navy now have the ability to show the flag worldwide? >> no. we can show the flag and move ships around all we want but i would say, no. ,argely, as a consequence health and retirement costs --

we're squeezing down the readiness and modernization. allocatingstion of resources incorrectly? there are billions -- it's the largest budget in the world. they barely equal ours. it are we just not using the money officially? >> we have responsibilities beyond the s on your list. we have capabilities that the rest of the world does not have. are we going to maintain this capability's echo one of the most difficult things you can -- you can demonstrate a correlation. it happens every single time. spend enough time in washington. have you delayed your aging with the affordable care act? well,s actually all going actually. i think most people don't realize that health care reform

is actually going well. we are now at the end of this month at the four-year mark. we have a structure now of the exchanges that allow people to get access. yet many kids on their parents plan. >> that's true. >> i have a daughter who took advantage of it. we have some serious improvement in quality. infections are down. we have had a situation where electronic health records are spreading. they will improve. on cost, health care costs have come down over the last few years. the care patients have had no increase in premiums. withw do you square that the idea that the affordable care act provisions keep getting delayed echo people can keep their health insurance for two years longer. as to the idea -- it adds to the idea that the rollout -- >> let's disdain which substance from as to the idea. your perception is a minor change. it affects 500,000 people in a country of 300 million people.

the core part of that bill for access, the individual mandate, that is not going anywhere. the exchange structure is going to build and get stronger. when you focus on the big picture, the substance is actually moving forward. emanuel with us. lots to talk about. come bonds,tocks commodities. speaking of the tensions that we see in ukraine -- >> a personal look at russian president vladimir putin. twitter question of the day. what three words would you use to describe putin? ♪

>> good morning, everyone. kerrey,t host bob -- washington is hoping the old by rallying the younger. at boston college. we are now prepared for retirement. while we are doing that, our government still skews benefits to the old. , we move towards

more defined contributions. the five benefit programs have been cut back substantially. those defined come to reach and plans have no replaced the security income to find benefit. at the federal level, we have exactly what you are saying. 80% of the people over the age of 65 vote. they just raised holy hell and they reversed it. some would say goes back to eisenhower. it took us to get to jimmy carter to get the thing signed. do we need another act to write our system because so many can't retire? >> i would say yes. savings to start the much earlier than we currently do. you have to make it much more progressive because one thing that has also happened -- you go a pittsburgh and you had

100,000 field jobs paying $80,000 a year, all on defined benefit programs. now the incomes are lower and service employees are out there making $16 an hour. if all you do is have a level of contribution, you're not going to a queue late enough to replacement program. there are some in people like tip o'neill who are gone. he would not survive in today's political environment. somebody very strong but with the capacity to say, you're a conservative, let's find where we have common ground. >> you look at the politics now, what is your to do list for your party ec? >> you do have to examine the aggregate cost of health and retirement benefit programs. and try to figure out how to make certain that you improve the security of those programs.

we balanced the investments we are making in young people. if you take the aggregate costs of medicare and medicaid and divided by the number of people in the work force, $15,000 per person. >> we will come back and talk health care. it's jobs day. ♪

>> good morning, everyone. i'm tom keene. with me, scarlet fu and adam johnson. it's jobs day. the former senator from nebraska, bob kerrey is with us and ezekiel emanuel. speaking of the tensions in europe. we will look at that through the morning on bloomberg television. adam has top headlines this morning. >> we will start in venezuela ande h a soldier

civilian are killed in protests. the violence brings the death toll to 19 in just three weeks of protests in that country. turkey may banned facebook as well as youtube. the prime minister tries to stop damaging audio and video clips. he saidterview, the mov the move could come as early as march. here we go. johnny football makes a deal with nike. the former texas and am order quarterbacks and am signed a contract with the company. nike beats out adidas, under armour and new balance which made bids for his marketing rights. he's projected to be one of the topics in the nfl draft in may.

those are your top headlines. we have a former senator and .overnor from nebraska what do you think? >> it exciting. -- it exciting. it's exciting. he is a real player. >> people worry that he is too small. i'm small, too. i hope he does well. job futures up 11. a let's go to washington. the republicans and their growing number of democrats suggest the affordable care act is a failure. there was another delay coming. all of that with ezekiel emanuel. is only damage

control. is the university of we are honored to have you here today. you here, delay, delay. those are small issues. the delay here affects 500,000 people. you have to look at the big structure. the structural changes that the affordable care act button to place for the health-care system. it gave us a platform. it will increasingly be used to get people entrance whether they go when -- individuals decide which coverage they want, not their employers or someone else. that will bring market discipline to the health insurance buying section. that will also drive a lot of competition and keep prices down. as people shop, they will focus on price and insurance companies will have to redesign the care they give so that they can actually give high-quality, low-cost. >> two days ago, i had a medical

practitioner working on a child. it was serious. i want the about is, best doctor. will i get that now? what is the delay about your keeping your insurance plan have to do with good doctors? the subs people are keeping our optimal. they give you a false sense of security. the important question about the doctors is, are they focusing their attention on sick patients and do they have all the teams they need? i see in the future a lot more attention on the client deal. -- the clientele. this is ezekiel emanuel's op-ed in the new york times. one of the quotes from it that we pulled out. a patient in colorado. he was able to get a second opinion with a specialist network. they reassured her that she did

not need chemotherapy after all. she paid nothing out of pocket. i thinkually think -- insurance companies really want to give people a second opinion because when they have a serious illness, and reassures them that they are actually getting good care in their network. increasingly, you will be getting your insurance from cleveland clinic, from the mass health providers are going on exchange. they will be offering insurance and signing contracts with employers. that's the future. >> one of the things in your book is that lawmakers do not focus on effective implementation and execution. the business world is always adjusting new products to make them better. it does that suggest that the private sector should be taking more of a lead in something as unyielding as health care? nothe private sector is

done a bang up job of running the health system. when employers -- they have not controllingjob of costs. whatever their system -- employers can't say, we can do it better. they have not done a terrific job. >> what would senator kerry ask emanuel?nue >> why do we always had to say to the audience that this is going to be easy? the problem with health care is, we keep telling people, this will be easy. you get the best health -- you talk about the cleveland clinic, that's the best doctors in the world. stop talking.ot

futures up, too. dow futures up 11. at the end, 102.92. >> when we come back, we will be talking about the ceo of manpower. talk about jobs. ♪

this is bloomberg surveillance. i'm scarlet fu coming here with tom keene and adam johnson. let's get you some company news, starting with japan and korea investigating price inflation over at bp. regulators in the two countries have asked for information on pricing. japan and korea joining the u.s.

and the european commission in investigating how benchmark oil prices are set. transcanada moves closer to learning if it's keystone axle xlceline -- keystone pipeline will be approved. ann kerry will offer opinion. after that, the president will decide whether or not to approve the keystone pipeline. boeing freezes pensions to cut costs. at the company will shift benefit payments for 68,000 employees to a 401(k) style plan. totaled $32expenses billion. takes effecte aff january 1. >> we are back with ezekiel emanuel, a supporter of the affordable care act.

goals,to ask you, two get more americans covered. fine. were it not for bloomberg, my health care would cost me $700 a month. that is insane. why can't we get the cost under control? >> costs have been 1960's twonce the percent above the growth in the economy. mid-1990's under bill clinton, health-care costs have actually grown at the same rate as the economy. it's a very big change. part of that flattening of costs and the last two years with a meta-for was change in design and part was the aca. we have structural changes in the system. big part of it is, under the laws, if you pay the same -- it doesn'ter matter how healthy you are. it's called community rating. young people pay the same rate as all people. >> we have to figure out how to

pay for all people who don't have it. >> its community rating. under the laws of the state of new york, you pay the same rate as anybody else. >> the key to going forward and improving the quality and lowering our costs, focusing on people who use a lot of healthcare services. have major illness. we need to focus attention on them and keep them healthy and out of the hospital. before now, doctors did not have incentive to keep people healthy. the big transition over the next decade is come in said devising them financially and in other ways to keep this patient's healthy. that will be the key to reducing your premium. old over here, young over here. i want the two of you to explain to me why the liberals now are to the right of richard nixon of the early 1970's. >> richard nixon had a plan that

he would subsidize people based on income provided private insurance in the marketplace. it had to be not for profit. >> we have underwritten the most expensive group possible. everybody over the age of 65, including people who have kidneys that are malfunctioning. we underwrite them. you pay for. that's through taxes, through medicare. that's not his premium. he is saying $15,000 per year. paying $15,000 per year for my social security >>. we all agreed that is too much money. the key to bringing cost down is actually improving the quality of care for keeping people healthy. questions started with his assertion. he is saying $700 a month. one of the reasons is in order for me to pay less. that's the whole problem. >> adam johnson is now

supporting bob kerrey's health ? you held the pen for nancy pelosi when she took it from the president. whatsking you republicans need to do to get in the vicinity of richard dixon. >> the problem with the republican proposals is, obama care is the proposal they really want. it's exchange, market-based approach. it gives people subsidies to lower the price. allowsens -- it consumers to make decisions. it is consumer through and through. what they hate is the name obama. that's why they have never had an alternative that makes any sense. i obama care is their plan. this is a smart debate, folks. a lot of the emotion out there

now. there is a data check here. did you know there is a jobs day-to-day? for a consensus here is gain of 149,000 jobs. your futures are higher before that. >> good morning, everyone. say good morning to all of you listening in europe. i'm tom keene. it would scarlet fu and adam johnson. ur fired up guestt hosts, bob kerrey and ezekiel emanuel. >> we have another topic right now we will discuss. unemployment numbers coming out at a: 30. our next guest says look past the cold weather and focus on where the growth is.

hiring in construction and engineering. he is the chairman and ceo of manpowergroup. joining us from the lucky, where it is very cold. milwaukee,us from where it is very cold. seee are starting to construction rebound in the third derivative. into the-- we went year looking at something a little more positive than what we've seen. there has been so much destruction between weather and the politics and uncertainty. what we will seeing i and this number is a bit of a pause. to usnot alarming because we hear clients saying that we are feeling pretty good but we will wait and see. in construction and manufacturing, we're seeing a positive trend. >> you help people higher both part-time and full-time. people want to work full-time but can only get part-time jobs.

what a you seeing in that ?alance right now >> companies are looking -- when you look at engineering, 40% of the current engineers are actively looking for another job. so companies realize that they have to be making some moves and get off the fence. as soon as they want to do that, what's happening is these other forces are coming in and saying, what the economy plateaus on us and we will be with some costs that we can afford? emanuel working with the obama administration, you were in the white house. how much can a president actually do to improve our job economy? is rhetoric or something they of it is> part reassurance. confidence in the future. part of it is also, are they going to put forward a policy that actually increases growth?

the president can actually do that unilaterally. something called the legislation. congress needs to act by passing bills. we saw this in the recovery where the administration wanted a second burst of stimulus money but congress would not go along. didan do things like he with the minimum wage for federal workers executive action. that is not going to change the minimum wage for everyone else. >> i want to go back to you. we have you on every month on this job stay. when you get the payroll numbers anything that concerns what you already see on the ground? through every piece of it. one of the things we look at is the revisions. most importantly, we look at at hours worked. we have the demand we are holding back. they doing demand and hiring instead of anticipatory hiring. we are not seeing that show up in the hours worked.

if we can start to see that hours worked move up more than that, we will see some latency that will create some demand later. the former vice chairman of the fed talks about the wage price spiral. are we seeing any evidence of rising wages? >> the wages are the most important part of inflation, which is what the fed is looking at. we are not seeing that in mass. we are seeing that those who have a college education than everything you've heard about, that is where you are seeing that wage inflation. in this mid-level, entry-level jobs, we are still saying that there is enough of us apply in certain areas that we will see the wages being held down until we get further into the recovery is more confidence. >> ceo of manpowergroup come you join us every month. we will see you again next month. thank you. >> coming up, the college board

revamps the sat college admissions test. we get there take hear from the president of the new school senator, tha. ♪

>> good morning, everyone.

jobs day. at news of ukraine and crimea, the euros what am watching. 139.02. stronger euro this morning. that is a huge effect on germany. i'm tom keene with scarlet fu. joining us right now in the loop, betty liu. ?hat do you have today >> we will see how much weather had an impact on this jobs report. maybe not a clean one until come march or april. we have david rosenberg on. memberl be analyzing -- of the white house canceled advisors to give the government take. >> dr. stevenson has written for bloomberg view as well. what is this on? russia? >> boudin and the

president spoke for 90 minutes. >> and 60 minutes last night. >> they still have not come any closer. who justified his invasion of crimea by claiming the region's russians were under threat. it may have more to do with vanity and fear. the deputy editor of the putin'ss week on foo ambitions and crimea. this traces back to his former career as a kgb fighter. >> we have a tendency in the west to see everything he does as somehow perfectly rational. this notion that he is a chess player and we are playing marbles. an attempt foras him to exert russian influence over what he sees as his natural backyard. anthe same time, there is amount of improvisation here. what happens in ukraine was

really a blow to his whole self image. he wasn't going to take that lying down. hat explains what he has done here. he is leveraging his influence to try to change -- jaggedthe stereotypes of wires and leopards. what did you learn about who this guy is? >> he is a russian nationalist, first and foremost. he has a vision of creating a greater russia and he believes what has happened with the divide of the soviet union was a huge blow to the whole sense of russia's place in history. he sees that as his ultimate mission as the leader of russia. and he mayto realize come to realize that russia's ability to project its power is not what it once was. it has a lot more weaknesses. >> from the wall street journal sanctions who

would dump mr. boudin and the putin in the trash tomorrow. it used banks, not thanks. s perdon't think nato i pair to go to war over crimea. we can target these people and they can change his calculations. >> think you so much. -- thank you so much. ♪

>> this is "bloomberg surveillance." our guest host, bob kerrey and ezekiel emanuel. it is our twitter question of the day. what three words best describe vladimir putin? >> keep it clean. bit.ll get to that in a monday, over a lengthy weekend, with the geopolitics of europe, we are honored to bring you the former ambassador on foreign relations to start. we hope you start with us. >> but skip to some company news

from the piles of bloomberg west. we start with twitter, going on a patent binge. buying 900 patents from ibm for $36 million. twitter now has 956 patents. the fourth ipo in november, twitter only had nine patents. italia scrapping its dividends. loss ofa four-year net 934 million dollars. revenue declined to 9.1%. the company has been working to upgrade its networks in italy and brazil while trying to cut down its debt. ip?e or isn't he the creator bitcoin. he denies involvement and says he only heard of bitcoin three weeks ago. >> the main reason i am is to clear my name. i have nothing to do with bitcoin.

--hing to do with developing i was just an engineer doing something else. finding theest in person or persons responsible for bitcoin was so intense that at some point yesterday, a heard of reporters chased him. >> not jennifer lawrence or jared leto. we don't know. they allege. >> you can understand why he would do night even if you were. were.n if he it's nice to see the smartest guys in the room lose -- >> $400 million confiscated. ezekiel emanuel with us.

this wonderful new book out. this is serious, folks. overhauls theard sat. 1600 is bad, along with free online test prep. he lived with it and was battle scarred in the nation's wars. he was battle scarred as the president of an institution of higher education. how much angst does the sats bring you? >> the problem with the sat is that universities use them to move up the rankings -- move up in the rankings. in addition to turning people away, the more people they turn away, the higher they go up in the ranking and the higher their sat scores, the higher they go up in the ranking. it's unlikely -- >> that is your hot button. it is meant?

my eldest took the sat ended extremely well. why don't you call the uncles and brag a little gecko so she that firstnd says, score of yours, that was my combined. he is a smart guy. did you dive into lake michigan like your brother did? >> i'm not crazy. >> you have to get low sat scores. >> an essay by a college professor at colby writing about the sat being a mindnumbing ritual torture. no single exam should determine anyone's pay. -- anyone's fate. >> it is part of the game that universities play to get their rankings in the u.s. news and world report up. that is one of them.

what is your average sat score? your average sat score will have a big impact on your ranking. worse, how many students have you turned away echo to call it selectivity. harvard turns away many five percent. people they turn away, the higher you go in the rankings. of datahe worst uses out there is, you tell me what kind of household income there is, i can tell you your sat score. it does not predict how well -- >> we live in a day of grade inflation. school would not grade inflate and that student was in tears. you have to great something with the benchmark when summit he + -- a b >> raids have gone up so much -- grades have gone up so much. they don't differentiate people. students should be upset by grade inflation.

we used to have 40% of grades 's and 16% ras. a's. now it's reversed. they don't do other things that are relevant. effort, persistence and your ability to overcome barriers. i've never liked the sats. when we evaluate students to come to my program, we almost never look at them. >> the u.s. is winning in the direction of other countries ollegeyou have a big call i admissions test and you get there and everything is great. you don't have to work hard while you're at the university. kept theirleague has enrollment numbers exactly where they were 40 years ago. where is the number of applicants of ghana. it's part of the game. harboring to say, i have a $40 billion endowment,

why take another 1000 students in my school gecko their rankings will go from number one to 3 or 4. >> this has been great. i want you guys here every day. smart debates. >> there some heat. >> let's get you some heat. the heat of our agenda. we want to talk about the stories that will be big ones throughout the day. morning, i'm not looking at the frozen whether we have been having. i'm looking at the revisions and the three-month moving average of jobs to see where we are in the subject percent economy. then i'm going wages, wages, wages. .ob kerrey knows it 's median income is media is back to where it was

decades ago. >> adam what do you have for your agenda? >> i will be springing forward saturday night. we lose an hour but we pick up on the backend. it will be nice. >> there is all the studies that show americans get into accidents and there is work place on productivity because of the change in times. >> it's the same even when we get the extra hour. i would like a daylight savings day. we should keep it the same. it's good for energy and health. >> even congress is for. >> so shocking. >> let's get to work with a question of the day. what three words best describe lattimer? our first answer -- shrewd, prodigious, dictator. very to the point. >> he's not a dictator.

they have open access to the internet. you talk about what turkey is doing. a substantial amount of police power, but i would not label them as a dictator. >> brilliant, ruthless come egomaniac. that goes back to what bloomberg businessweek was telling us. you might have heard that. "the godfather." >> people talk about russia as a mafia state. to be at the center of a lot of that. >> that's a little bit unfair, isn't it gecko sometimes these labels it you and characterize you pretty well. he could put me in prison for the rest of my life saying, it's just business. >> use the oligarch to get them out.

think you so much to our guest host for the hour. -- thank you so much fo to our guest hosts for the hour. ♪ . .

>> good morning. it is friday, march seven. at his job stay in america and we are live from bloomberg headquarters. you are "in the loop," and i am betty liu.

we are going to get the february jobs report in just about 30 minutes. economists say employers probably added more jobs last month and they did in january but there might be a wild card -- bad weather may have kept some businesses from hiring. blackberry's new ceo has been checking in with his best new customer -- president obama. makes sure the president and his staff numbers are keeping -- using their about -- their blackberries. he said it was just some typical customer outreach. ukraine says it will not accept a compromise in the future of crimea. the region will hold a referendum march 16 and become part of russia. russian lawmakers say they are in favor. ukraine says nobody will result -- recognize the result of the referendum either way. we're back to the jobs report expected to be coming at about one hundred 50,000 jobs created in february. economics editor mike mckee says