on wall street. . . they can figure out which republican to support in 2016. it is a mess. the search continues for malaysia flight mh370. good morning, this is "bloomberg surveillance." it is wednesday, march 12, i am tom keene. joining me as scarlet fu and adam johnson. a busy day. we have the malaysia press conference going on as we speak. we will look for the headlines. here is adam johnson. >> overnight, japan's consumer covenants level fell to the economic data,11 not a lot going on here in the u.s.. as 7:00, the weekly more jude -- mortgage up location. earnings after the bell. an important item to note, ukrainian prime minister, has only been in office for over a week, he is going to washington

to meet president obama at the white house at 2:40 five this afternoon. the symbolism is huge. >> quite yesterday, markets dead -- let's go onto the second screen. it is a vanilla board. this is the treatment as we go to the white house. we don't know the time yet of any announcements or press moments out of the white house. here's the russian currency. here's that new bout of weakness in the russian ruble and it just stays weaker as russia intervenes to try to support it. pre-k's just so viewers know, this is a long-term chart.

20 years. you can see how significant the weakness is. remember the way these are quoted, this is the number of rubles per dollar. >> this is 9098. you can see the scale and scope of the disaster. that is the actor up from geopolitics. we scour the papers this wednesday morning and the webpages looking for what you need to know. >> breaking news because the >> this is "bloomberg malaysian airlines press conferences taking place right surveillance." now. >> the president greets the the take away from the headlines as they still don't know anything as the search for the extends today five. president of ukraine at the white house. jim oneonta economic consequences for russia. continues widens and 12 countries are now involved in the search, searching east and west of the country and on land. for malaysia 370. the south china sea and the lock as straights. we hear four passengers who were our with jimmint on standby for that flight were eventually admitted to the o'neill. flight. so they got on board. we are live from our world

beyond that, they say they will do whatever it takes to find the headquarters in new york. im tom keene. plane that they still don't have any new information and they're joining me, scarlet fu and adam johnson. our guest host, formerly with looking and vietnam says the search for the plane and come up goldman sachs, jim o'neill. us -- alexand joins with nothing. >> the geography, which i think tip jets down.n clement joins us from ian bremner's eurasia group. let's get to our morning brief. and all of a sudden, we're here is adam johnson. >> we will start with what looking at the presumed path that people have turned left and happened overnight. started looking back to land. japan's consumer confidence index fell to the lowest level >> over malaysia. since september 2011, according >> toward india. to a survey released in tokyo i mean, india is a long way overnight. away, but did you do well on economic data in the u.s., your southeast asia geography? admittedly there is not a lot. >> well, i lived in the area, so we have the mba mortgage in a little bit about the area. they are not ready to give up on any potential explanation for applications. it is a volatile number and we will let you know if that why this plane disappeared. crosses -- >> it just crossed, actually. the cia director says he still down 2.4%. can't rule out terrorism. >> volatile number, to say the >> very serious issue. very least. i have to say my geography, this ,arnings after the bell comes out of four volumes of arguably the most important item patrick o'brian -- ukrainianda, the

>> i thought you're going as a -- prime minister is in washington >> we will have more on this. we will speak to an expert about to meet president obama at the white house at 2:45 this afternoon. the symbolism of these 2 men pilots in the dark as they fly coming together is dramatic. >> the op-ed in "the new york around. still very serious in malaysia. freddieecond from page, in a" -- we will have that bit -- was much more forceful losinge and fannie than i expected. >> you have company news. shares. longer would've plans announced >> members of the banking to dismantle the two government owned mortgage giants that would committee will introduce a bill repeat just be replaced with to dismantle mortgage lenders, government bond insurance ok can in. -- that would kick replacing fannie and freddie with scale back government guarantee for mortgages. democrats and republicans win in it is said to be formally introduced within days. on this. "> "the wall street journal and freddiennie plunged in the last few days. reporting very important, the makers of candy crush have priced their initial public offering. digital sell shares for up calling it a big step forward. there's a lot more to go. to $22 apiece, meaning that the >> especially in the fact fannie ipo could raise as much as $532 and freddie underwrite more than million. of of the mortgages -- 3/4 the company plans to list on the new york stock exchange under the ticker symbol kig. the mortgages in this country. that is how important is the justice department is

investigating general motors. institutions are. how do you fix it and what do howis looking into you ultimately replace it with? >> i read 290 pages on this five years ago. they handled the recall with >> and still sorting it out. faulty ignition switches. >> the basic answer is, this the government is trying to will take a long time to wind determine if gm broke the law by down. bob corker said he would love failing to notify regulators about the problem in a timely fashion. >> to be clear, adam johnson, to get rid of them but realizes you have to create something new. this is old news. story, aird front-page >> this is old news. new poll is out in the approval rating for president obama has gone up. this is a problem that goes back to 2004, and if somebody didn't it is 48% versus 42% in surface until 2011, which begs the question, why did gm hide it december. it is the biggest positive for so long, especially given change of his presidency. keep in mind, 40% also that there were over a dozen deaths? a lot of engineers at gm, by the disapprove -- 48% also disapprove. >> is it because he went to the way, anonymously of said that is gap stores last night? because you simply did not send >> a lot of people talking about the news up the ranks. >> management issue there at him raising minimum wage. renaissance center. scarlet? he is winning some points to >> we are headed over to london some extent on that. right now because francine you were saying he was in the lacqua just wrapped up her interview with the billionaire gap buying sweaters for his family. was anyone polled affected by hedge fund manager george soros.

i know that the 2 of you talked about ukraine and attentions -- the tensions there. the block off? >> we talked about a wide range >> you could not even cross the of topics -- we talked about street as a pedestrian. china, the u.s., europe, and we centralying to go to talked about the political vacuum that he sees in ukraine right now. park to run. >> you run? i asked him what needs to be done. that is why your chiseled. >> thank you. he said it is up to the european >> i run the radio. union to make sure they don't fold in ukraine. those are our front page they want to be part of the western society. he also said that we have to stories this morning. stop focusing so much on we will keep you abreast of the vladimir pruden and what he does , because the way he thinks and stories. analyzes society is just that much different. n as a very different futures are -5. dow futures, -33. idea of what society should be we go to john mcgraw. like. he believes that people can be he assisted us yesterday with manipulated. perspective on airlines as we he has got a blind spot. look at this tragedy in the south china sea. cockpit,nto any given it is beyond his cover hanshin the people -- it is beyond his

given over and over ocean comprehension that people can spontaneously resist. >> i also asked him whether this flight. howling charlie over a wide ocean -- how linked are they to over a wide ocean? was a personal disappointment for george soros, because he has do they know where they are in a lot of investments in russia, do we know where they are on any given flight? >> well, yeah, they do. he also has an open society foundation where he tries to talk about the rule of law and pilots have multiple systems just make it a more fair society where they can communicate back in russia. to land. satellite or he says he doesn't take it personally, it is just the way union but the european high-frequency radio. there are number of ways they can communicate. that is the ministry. needs to do more to invite the not only to communicate, but ukraine within its sound. >> he also talked a little bit after layer after layer of logical redundancy. about europe and the prospects for that region as well. what was his prognosis? there's even a deployable something that he is turbine that drops out of the side of the airplane that produces electricity. there are many ministries here. very passionate about. he says, look, we have a >> i don't want to speculate and political vacuum also in europe. rumor in that, but is the i have spoken to it many times -- he says that germany should telemetry of the south china sea do more to help the rest of the or the malacca strait, the same european union. he says that if you have a bloc, as going from new york to london?

are we more wired up across the 17 for the euro, there needs to be more transfer of wealth. atlantic ocean and in the this hasn't really happened. agencies? sees?n i asked him whether there is number problem that the markets >> they should have the same are not really reacting to all this. there was a political crisis in europe. belgium, yields have moved. durability. that is what is puzzling. he says it is not the market's they did not hit emergency or say anything and we don't know if they try to or not. job to keep a check on that is a key question. politicians. today attempt to select he says that what the markets and investors want is to make money. emergency or not. >> in a scenario like this, and he says that a lot of these banking stocks in europe are undervalued. i asked the question because i --y are distressed cockpit sat in the 787 depressed, he said. with pilots and they talked >> always looking for an about the redundancy. opportunity there. in a scenario like this, is thank you so much from london. catastrophic failure the only thing that could possibly make >> our guest host this hour, jim an airliner just completely disappear? >> well, either catastrophic on you. failure or if the flight crew -- jim o'neill appeared former was actually taking action to chairman of goldman sachs divert the airplane. those are the scenarios you're international. alex clement with us as well looking at i think. from the eurasia group. between secretary kissinger's >> even if they were taking op-ed a number of days ago, we action to divert the aircraft, see george soros on decades of would there still be a signal

sent out to various other europe. sources that would pick up on it? >> well, they could disable the how fractious and fragile is the systems. european experiment as ukraine the pilots can disable the comes to the white house? >> the interesting thing about systems so they are not sending out that signal. >> why would a pilot ever do the clippings up something i've that? >> that is an unknown. been focusing on. we have had two accidents that we were joking before i came on now -- the europeans never were major airline accidents really anticipate and stop our crisis. where pilots flew the airplane they always have to wait -- >> reactive institution. >> in a very peculiar way, this into the ocean or crashed the airplane. i don't know whilst they would ukraine mess is another symptom of the same sort of issues that do that. >> we have headlines. led to many of the problem. >> at the press conference, the ,> is a dangerous for us company says a boeing 777 can fly below the radar as long as particularly those of us of an older vintage, to equate the events now with iraq and the it has fuel. that is a new twist to this, other moments that we remember -- with prague and the other even as the searches are in the south china sea and malacca strait and said they can answer moments that we remember? is this new or is this history any questions about the black repeating it self? box. it looks like the aircraft use thatdangerous to technology is so advanced, yet we can't get beyond the questions without the black ox. it leaves us with a quandary supposed to framework even though there are aspects of it.

because the technology is it is sort of indicative of the advanced, yet we can't do without basic clues. fact that the world economy has changed so much, but world what do we not know yet that might really be in the black governance -- >> has not. box? >> what we don't know is whether alex, pick up on that. is that what we've got here? >> one of the interesting things there was a malfunction or not. there are systems on the about the conflict in ukraine is airplane that should have told how much of the rhetoric around us where it was. radar,plane flying below this conflict is framed by things that happened 50 or 70 years ago. world war ii -- >> chris jeff, 1954. you can intentionally fly an >-- khrushchev, 1954. airplane at low. but the closer you get to land, >> hungary, prague. primary radar systems usually the cup that signal even at low altitudes. we thought these were answered after 1991. potentialhere is the in fact, they have not been. >> we have a critical moment on since there is no debris field, there is the potential the sunday when the residence of airplane could have hit a speck leada vote to potentially of land somewhere as well. >> john mcgraw, greatly ukraine and go to russia, and appreciated. yet the german chancellor has we continue to monitor events in said she won't acknowledge that. how do you resolve crimeans malaysia. hour, maxhost this voting to do one thing or the other and yet europe saying it is not going to her knowledge? wellthink everyone fair abelson joins us. to say he covers wall street

barely describes his ability to understands that crimea will no get on the phone and find dirt longer be part of ukraine. on all the too big to fail banks the europeans say they will escalate sanctions in response . to the decision, but the real we are going to talk about about your new story on wall street. escalation will come if vladimir let's talk about the elephant in the room. putin decides to invade eastern ukraine or southern ukraine. jim and i were talking about braced for 25% fixed this before the segment -- early on, three weeks ago, the idea income fall. when you talk to matthew moore, that russia would invade crimea and take it away from ukraine christine harper and the others on our team, how grim is it out there? >> that is not a headline makers would have been unthinkable. he stared everyone with the prospect of intervention in want to see. moore,one hand, michael eastern ukraine that now everyone thinks -- see --ussia still a bri christine harper, they're constantly talking to bankers as i am who seem full of angst, bric? >> for about the past five years i get the e-mails everyday worried about the future, unhappy about how low recent pay is been. asking if they are. but on the other, i have to say same stock answer -- i do it on that banks are still among the most profitable firms in the the economics. ,espite all these complications world and on top of that, in europe, i think it is going to be a lot worse than for the americans. >> the article makes clear that it is still in the top 10 economies the world and it will take a very large russian crisis the european banks are in worst shape. for that cannot be the case, given how much many other

i'm interested in what is driving this shyness of banks to countries struggle. create as revenue. rule or morecker that is what gives the parameters for me. going back to the governance candid the fact that in general people don't want to be seen as issue, -- i travel around all sorts of parts of the world and here angles from the other side the financial industry does better? -- we can't believe they have to central theme. do things on the criteria just as we want when we don't this morning what i wrote about necessarily live to them ourselves. likingall street's urge in the u.k. we have a referendum on scotland. -- one thing that kept coming people in that part -- up, they're so much anger on >> how can we call out ukraine wall street about washington that they feel like it would be when -- much more active is only it >> an additional complication. weren't for the roles hole in the back. >> we're going to talk about countries in the west have gone your great story in a bit. areas of the world what is a cool restaurant right now for bankers? >> this is a cheap one, without being invited and inexpensive thomas arm. without being fully agreed by all parties in the u.n. -- aally as i'm of the there are major, major complications about this which goes back to the core point -- sign of the times, parm. we haven't got consensual governance. when the crises erupt, economic >> that is for me, not you. or political committees difficult to get a solution.

>> with us for the entire hour, max abelson with us on banking for the hour. >> coming up, the $1.8 billion germany a land alex kliment. -- deal means retail. jim o'neill and alex kliment. economies tohe new eddie bauer left at the altar. we will discuss. you're going to like the way you look, i guarantee it. watch, according to jim o'neill. our twitter question of the day. ♪ this is "bloomberg surveillance." parm. >> let's order out during the break. we will be right back. ♪

>> good morning, everyone. "bloomberg surveillance." i'm tom keene. jim o'neill support manchester united football. mr. o'neil would also like to support manchester and the other cities of the united kingdom. he wants them in first-place with trade but he wants london to not write the check for the economic development. it is a key issue in his united kingdom. london doesn't want to write the check to save liverpool, tod -- do they? >> i don't know why they should. to push a little bit on the >> good morning, "bloomberg introduction, you are referring surveillance." to my role as citigroup commissioner, a very exciting part. up, stephen sent off on we are trying to go with ideas ,hat promote more shared growth not london's expense or damage the state of retail and in of london. the u.k. is not unique but quite particular why you can get that rare of relatively large dress you want.

countries in that london be "in the loop" with dominates the overall economic scene. it is not the case at all in the betty liu. states, in china, not the case in germany. we are trying to come up with initiatives that lets adam johnson, you have the deal supply-siders think about how of the day. >> it has been the deal, talking things like manchester could about men's wearhouse finally work better. >> the free trade zone? buying joseph a bank after a very prolonged situation where >> it is the idea that people in you had even bank bidding for men's wearhouse and trying to put in -- the u.k. don't have enough debate about. germany'st one of >> it is such a soap opera. >> a total soap opera. successes and i see it when i and it was played over five months and forth. travel to china -- so many cities have counterpoints with two aboard harrison advised china through airports. manchester does not have its own one. everything is through london. bishop joseph how much of this was really this crazy debate about he further goes on forever and ever. why not -- this crazy debate about rice? >> never about price. over heathrow goes on forever good morning. to pursue anted and ever. why not? >> is it a distraction? >> actually, it is in some ways

dual path to make sure no storm quite convenient. i don't know whether it is just a fluke, but we were only -- stone was left unturned. existing the year as this we were convinced eddie bauer commission and it seems to have caught the mood of the moment. would've been a terrific there's a lot of focus on what we're doing and i suspect that transaction. the board is equally pleased at the margin, the debate about scottish independence has that men's wearhouse has recognized the inherent value of jos a bank. helped the focus on the issues we are talking about. >> in the past 12 months, the excitement of the united kingdom the --mium over simply doing better -- i will call it the surprise of 2013. with your work at goldman sachs, >> gilbert, but your own words, it is about price. can jim o'neill say that >> it is about price, but also austerity in the united kingdom was successful in the united doing the duty of board has to its shareholders to give us the states: from that? -- the united states can learn from that? best possible value that we can >> i don't think it is that have. >> gilbert, why are there not more robert will directs? straightforward. some of the growth came around because of her remarkable easing in financial conditions. he seems to be carl icahn's i think it was reasonably predictable respond those kinds favorite ceo. of things. where are the others in american >> jim o'neill with us as we enterprise? >> i can tell you that. look at economics. coming up, the geopolitics of the ukraine as their president

bob is one of the great visits the white house. retailers. he understands the business. it's "bloomberg surveillance." ♪ he understands the people. he has built a great company -- >> that you have been doing this for decades. why don't we see more transactions like this? >> because many times people don't have the guts to do what path., to go on a dual many times the management of the company and the directors don't have the fortitude to look at the fiduciary duty, they just crack under pressure. surely, we would love to have done eddie bauer because we got the business could grow. but on the other hand, men's wearhouse is the shareholders tremendous value. >> folks, what you just heard from gilbert arison is the most important thing on him in a we will discuss all your on "bloomberg surveillance." fortitude and guts and robert wildrick had that. >> you talk about the dual path. one more question for you.

joseph a bank is growing twice as fast, twice as fast as men's wearhouse. what can they teach its new owner men's wearhouse about growing the business? they awful lot, assuming want to take advantage of the management we have. we have gone from 20 million of 1.8et value in 1999 to billion dollars, which would just offer men's wearhouse. phenomenal picture of what board and management and leadership can do. joseph are advising bank. gilbert harrison, a legend in the retail advisory business as the chairman and founder -- thank you for joining us. wins outdge fund because it owned about 5% of joseph a bank and 10% of men's wearhouse. they got out pretty well in the end. that is something we will continue to monitor. are you wearing joseph a bank?

>> no, this is somebody else. a new bowtie. >> do you? >> i literally wearing my father's hand-me-down blazer here. >> you need a blue statement with the brass buttons. >> that was the first advise tom keene to me when i came to bloomberg. >> buy a blue blazer? are you going to prep school? >> he is a good-looking man. >> coming up in the next hour, we will talk to the man who cs.med bri what is your ackerman -- acronym? tweet us. ♪

>> good morning, everyone. "bloomberg surveillance." i'm tom keene. with me, scarlet fu, adam johnson. the russian ruble is weaker this morning. with us as we look at the events in europe, jim o'neill, former goldman sachs asset management chairman, now a bloomberg view columnist. and alex kliment is with us with eurasia group trade let's get to the top headlines. >> china it said to bring up interest rates on bank deposits within 2 years. byis an effort to compete offering best terms -- what a concept. protesters clashed in turkey last night that the violence came after a teenager who had been injured in a police crackdown died.

thousands of demonstrators gathered in istanbul and other cities as word of the death spread. police used tear gas and water cannons to break up demonstrations. quarters ofee americans say that the bull market has had little or no effect on their financial well-being. this is a party to a new bloomberg news poll -- this is according to a new bloomberg news poll. only 21% say that the gains of the stock market that made them feel more secure. jim, i'm shocked by that. what is your take on three quarters a reckons feeling like the bull market has left them? >> it depends on what kind of survey that is. normal people. i guess main and wall street are not the same -- >> it says that the average or megan is not invested the way he or she was 10 years ago. >> the underlying thing that comes out of it is the scars of the last decade hangover people still.

i don't think about it everyday, but of course one of the reasons the equity market did so well is because it rewards those who are the bravest rather -- if i were actively involved, i would be right pleased about hearing that kind of survey. you go 15 is ago and anybody who has a place down in florida, they would spend half the time speculating. >> it is suggested that there is money still on the silence because people haven't benefited. >> clearly. russia and ukraine are still locked in a showdown over the disputed peninsula of crimea. ukrainian prime minister will meet with president obama to discuss ways to find a peaceful resolution in the region and we are with the eurasia group's alex kliment. lay it out for us. what are the 2 or 3 scenarios that come under the meeting today? >> the europeans and the u.s.

together are trying to send a much distorted signal over the past week that they support the legitimacy of this new government in kiev. >> good morning, futures -4. the problem is that that is exec they would vladimir putin does not want to see. this is "bloomberg surveillance." it is impossible to overstate the extent to which in his mind, i am tom keene. ukraine is part of the russian scarlet fu and adam johnson with state of influence politically and culturally. talking aboutnot us. you have some headlines. >> do you play candy crush? crimea, they're talking about king digital makes the game. eastern ukraine. >> i think that is the real focus now, whether russia makes good on its threat to invade crazy numberome eastern ukraine. that would impose very high costs on russia militarily, and like one million a day. at $21 tot the ipo the sanctions caused if the u.s. and europe escalate tensions could be damaging. >> 20,000 allotted troops? $24 a share. ukraine has 20,000. index ventures. i don't know what that means. >> if you have less than 20,000 if you did the math, the company is looking to raise up to 500 -- that is a lot of truth but if >> i seen again. you are facing an army -- >> which is why they call that the reservists in ukraine. peter cook uses it at the white house before the president comes out. >> to the bankers play this how effective the move is this game? i read on my like by president obama and arguably the u.s. thomas inviting this

brand-new prime minister of phone, but i'm also very boring person. ukraine to the white house? >> no, you're not. >> i think that the russians see >> i'm going to candy crush camp this as a direct provocation. the first week of july. in russia's official view, this time for the morning must read. -- this has been government is illegitimate, the government. a big thing. inviting a prime minister to washington sends a signal that the u.s. is willing to confront my morning must read is from the -- >> this is away from a lot of director of elite education san what we do at bloomberg, but francisco. without being inflammatory, how he was at uc berkeley for eight close are we to war? years. he says -- i say that with respect for the path of world war i. how close are we to shots being fired, to "war." >> if there are shots fired it will be between russians and ukrainians. he is saying democratizing it is inconceivable at this access to higher education in moment that nato would commit u.s. is a good goal and should troops to this issue or that the u.s. would commit troops to the be a goal with this new sat will issue. >> i don't see how nato could do further highlight the gap between the haves and have-nots that with any legitimacy, to be honest. come a dozen wealthier school going -- beyond districts and those in lower performing -- >> our guest host of blue

that, going to the corvair, the interesting question is the birdies, max abelson. he knows the hipsters that are germans. billy was were worth paying a 17, 18. what are they saying? 17-year-oldnow any lot of attention given the -- the only ones who are worth paying attention to from the west are the germans. >> you are writing for "the hipsters, but i've gotten to the boys ande from telegraph was quote and a bloomberg view. girls club. how does she moneylender but he took his sat a few days ago what chancellor merkel -- how does jim o'neill interpret what digg great and i think you did well. >> well done. coming up, this is an interview chancellor merkel is doing? >> she is doing which he you will want to listen to. typically does about the crises that pop up, slowly judging which weight do edge rather than speaking to francie wanting to be too decisive. makua. we will bring you the details on if they came to an animation "bloomberg surveillance." ♪ ukraine, germany will support -- germanyis a different from helmut schmidt? >> it is and it isn't. i worry that germany is creating new problems for the european monetary union. they are not allowing the ecb to -- they're living the current

account surplus that makes china's current account seem like a garden party. it is not the way to support a real, sustained recovery from the crisis. >> what about the u.k.? there is a suggestion that the u.k. wants to protect london as a financial center for billionaires. >> that is certainly true. the u.k. has its interests on the financial side. to go back to germany, that really is the key. they have the largest economic relationship with russia i could inflict the most pain on russia. >> we will continue the discussion, alex kliment and jim o'neill. you wonder if chancellor merkel should be visiting the white house. >> probably more productive. oneok tells usim why investors should look for a new group of fast-growing economies -- think mexico and nigeria. ♪

>> good morning, "bloomberg surveillance." let's do a data check. a little more action on the board then we saw yesterday.

>> we start with the head of walt disney's head of tv operations, leaving the company next january. one of the most powerful women in entertainment oversees abc networks as well as disney's cable properties. she says she's living to become a tv director. the justice department is investigating general motors, looking into how gm handle the recalled vehicles with faulty ignition switches after congress began a probe as well. the government is tried to determine if jim broke the law by failing to notify regulators about the problem in a timely fashion. setback for tesla in new jersey. stay commission voted to bar

automakers from selling directly to customers. they do not have franchised dealers and said they may have to close stores in new jersey as a result of this vote. i saw tesla last night on the streets of new york. >> that is very rare. is on theus why to the a discussion? >> protecting dealerships. geopolitics of europe, the drama >> it is just bizarre. .n washington today i haven't read enough about it. all of capitol hill will be any kind -- looking up pennsylvania avenue can drivesk says you to the white house as the president of ukraine will visit the white house and all the cross country. there are enough stations to symbolism as russia looks at crimea and, as we just heard on actually get you from new york to los angeles in an electric "bloomberg surveillance," russia car. looks to eastern ukraine as well. good morning to scarlet -- good morning. scarlet? >> let's get some company >> you have to go to california to buy one and drive across country. headlines with bill gross trimming treasury holdings. on an suv. working elon musk says that is in the works. the model x they call it. the pimco bombed king is trimming treasuries in the total return fund from 46% to 43% a month ago. >> sounds like a movie. he advocated selling treasuries ahead of the fed's tapering of >> racer x.

>> let's move on. its annotative easing. we have some important -- quantitative easing. conversations we want to get into. earlier in london, francine ande with george soros said in commissioners an interview yesterday that march 22 would be his last day spoke to him about what is going after seven years with the on in ukraine and russia, what derivatives regulator. he is at work on a book about it means for the european identity. is a wake up call to the relationship between wall street and washington. and a setback for tesla in new jersey. a state commission voted to bar because russia has automakers from selling directly to customers. tesla says it may have to close emerged as a rival of the its stores in new jersey as a result of this vote. that is today's company news. >> and has been nearly 6 years european union. since the government bailed out fannie mae and freddie mac. tried to reconstitute finally, members of the senate the russian empire as a rival and the white house agreed to a bipartisan proposal to wind down for the european union. the mortgage giants. it is a first step to say the very successful politically but least. we need to go to peter cook on a number of washington issues. let's start with fannie mae and freddie mac. it is the first step. unsuccessfully financially and great but what is the next step?

economically because the russian >> it is arguably the biggest economy is not doing well at all. step we have seen over the last 6 years. the fact that he off the top democrat and top republican on the banking committee along with the white house agreeing basically invisible to wind down these institutions is a major move forward in washington, one that has rocked those folks who are in the mortgage business. but putin has outplayed or outmaneuvered the european union something they have been waiting for. the timing is important. is true to form, what they have done by moving forward with this framework is give themselves a least an opportunity to cut a deal and wind this up this year. demanded too much and offered too little. it will be a very heavy lift but they have given themselves at so it wasn't difficult for putin least some opportunity to do that. they've got a convince liberals in the senate, democrats who are to -- but the ukrainian people worried that the government backstop is in substantial enough could at the same time, demonstrated by they have to convince republicans who want no government backstop that this is the best bipartisan proposal they can achieve. sacrificing their lives come of >> senator bob corker of tennessee told us on bloomberg that he wanted to get rid of any their commitment to be part of and freddie way back but he also admits there will have to be

some new entity that succeeds europe. them. europe.a challenge to do we have a sense of what that would look like? >> we do, and we know that mike europe needs to rediscover its johnson's plan own european identity instead of each country just pursuing its builds on what bob corker put together last year. national interest and getting corker were further and further into conflict with the others. rank-and-file members of the committee. it still has a government there are certain core , and the a new entity principles, and this is a political thing, democracy, open europe haseedom that government is there in times of catastrophe. the first 10% of losses on the backstop loan would be private sector, and after that the government would step in. it would be different from what believed in and to actually it is today but not as radically stand up and be united. different as some republicans in particular hope for. >> let's switch gears a little >> we will have a lot more in what is going on between ukraine bit. you did speak with marco rubio, and russia in the next hour. the front-runner for the republican 2016 presidential nomination. what was your biggest take away max abelson, our guest host this from the conversation? >> he may have used to be a hour, bloomberg news coverage of

wall street and bankers, do they front runner and then the whole issue of immigration came up and talk about what is going on in ukraine? >> the bankers i have the most his support for immigration is really hurt him among conservative republicans. i talked to him for an extended funds begin with get freaked out interview did he is talking about the world come even when about a whole range of other issues these days, including the good things are happening. economy, poverty, education. >> that is wall street, right? i asked him about his prospects >> they feel like the world is for 2016 and when he will make a falling apart and something decision. he says he will make it early next year and it is clear he horrible that happen at any hasn't decided yet. time. >> the choice for me is going to so it feels like a brand-new kind of a new cold war to break out or huckabee some north korea come down to, first and foremost, my personal condition with my family and otherwise that could do anything. -- or north korea could do preparing and positioning may not just a campaign but to actually do the job. anything. the other consideration i will >> that is the greatest sales have is can i from that role do pitch i've ever heard, yet to do the deal before the bad thing a better job of advancing the happens. do it now, do it now. things i believe our country , versus a roleng >> their paranoid all the time. >> that's true. i have now or some other role. >>. i think even geopolitical experts really don't know what we will have more of that interview at 11:00 on "market is going to happen with ukraine and are generally worried. makers," talking a lot about >> and worried about who is going to be the president in policy and investigations could 2016, too. don't be so sure that he doesn't that is a big issue of throw his hat into the ring. >> marco rubio, he will be want

contention for these bankers. coming up, wealthy wall street a lot, although none of them can hold a candle after hillary republicans are searching for clinton. , and you wonder the 2016 candidate. how they get to a year from now max abelson has a couple of insights into this one. before it gets serious could you this is "bloomberg surveillance." ♪ just wonder, 6 months from now, 9 months from now, where they will be. >> spectator sport, tom. >> exactly right. and jeb bush, you wonder what he will -- >> yeah, right. >> there is not a whole lot of data on the calendar today, just mortgage. the 10 year yield is lower at 2.75%. the euro is a bit stronger versus the dollar. nymex oil falling to below $100 a barrel. eye on copper, which is continued sliding on concerns of yet another chinese default. >> good morning, everyone. "bloomberg surveillance." i'm tom keene, on bloomberg television, bloomberg radio. look for our niche products,

bloomberg radio less -- bloomberg radio plus and bloomberg tv plus on your ipad. i'll guest hosts are jim o'neill and the former goldman sachs asset management chairman, and also alex kliment joins us from the mint eurasia group as well. >> 13 years ago he coined the bric. the lesson we take away is like countries don't need government stability to our growth. jim o'neill calls them the mints nigeria,, indonesia, and turkey. he credits the large and useful population there. a lot of those countries have seen their currencies weakened tremendously. others, like south africa and bric haveormerly of done well. on the currency thing,

in a completely tangential way, talking about ukraine, there is another currency that is fallen dramatically in the last 12 months, and that is the end. >-- yen. >> non-emerging-market. >> hedge fund guys love china and the pan -- love china and japan and it is not overly different. some of these countries need a weak currency to make sure they stay competitive. a currency going down can be bad and it gimme good. it depends on the kind of reasons. i would also point out, of ricreasing interest, the b and mint have done pretty well recently. indonesia was up 10% last year. >> what are the best practices of indonesia and the philippines? what are they doing to be betterments -- better mints? thing cames meant out of the bbc radio documentary i did, we started way back when

>> good morning, "bloomberg the fed was beginning tapering surveillance." could and i thought indonesia i am tom keene with scarlet fu was going to be the one with the most questions because i did not think they would respond to the and adam johnson. -induced pressures we need some top headlines. >> china is set to free up interest rates on bank deposits could macro policy-wise, these within two years. guys are doing a better job. the unprecedented move will force their banks to get deeper customers by offering best is thatrlying message terms. what a concept. when you don't have the same officials say they hope the move favorable external circumstances will put money in the pockets of facing you that they have had savers in china and push lenders ,or the first decade of bric to evaluate risks more carefully. inice and protesters clash you have got to respond when turkey yet again last night. the violence came after teenager there are things that are a bit tougher. those 2-the others haven't. who had been injured in a police turkey there, turkey crackdown last year died. thousands of demonstrators gathered istanbul and other cities as word of his death is really struggling. >> make the case for why investors could take a look at spread. police used water cannons and mexico and nigeria. tear gas to break up the demonstrations. >> the thing that worries me they call it a sign of budding about xcode that everybody business. the marijuana industry is worries mes like -- holding its first dog there. >> i don't understand. >> budding business. about mexico is that everybody think it is like a love affair. i think i jumped in a piece i wrote for you guys and on bbc you get it.

15 companies have signed up for the event in denver tomorrow. they're looking for 100 workers radio, it makes maggie thatcher to fill openings for everything seem like a pussycat. when mexico is doing big. from store managers to bookkeepers -- >> those are like interns. there is a if and the nigerians and their own chaotic way. >> alex kliment, you have to deal with dr. bremer each and callout for taste testers. companies are's rounding up -- every day. >> sprouting. can you have mints and brics? >> having fun here. following the legalization in >> what you have to look at is january. those are the top headlines. if we can call marijuana the top how good are the policymaking teams in these countries? headline. what is their capacity to carry out reforms? on the space cowboy with the mint, you have widely that you weren't ready for that divergent political situations. ♪ >> oh, boy. has this, pena nieto boulder, colorado, the mandate for reform and it may be a love affair syndrome, i completely agree with you, but 1970's. >> my single best chart is on there is the agenda -- >> what's wrong with a love the republican party. affair, jim? >> having been in finance for even though chris christie has fallen off in the polls as a republican presidential nominee, 30-odd years -- >> you don't want love. bookmaker still favor him pretty high. his odds for scoring the gop >> there is the lazy consensus. nomination are 9 to 2, just

behind marco rubio with four to for able tohat much one odds or 20%. start thinking of less. rand paul, jeb bush, ted cruz an entirely separate issues of rounding out the top five. >> where is newt gingrich? economics and markets as well. >> much lower. what alex is saying is right. gop christie and all the when the circumstances get follow dramatically when it tougher, how good is your comes to the 2016 general policy? >> jim o'neill and alex kliment elections because they're odds are at best 12.5%. guess who the front-runner is this election? >> we know who she is. with us and we will come back on >> hillary rodham clinton. russia, the debate we had moments ago. adam? >> our twitter question of the day. in one case, 44% to win the whole thing. >> the sanity and the insanity you already know who jim o'neill of a 2016 look. how about wilbur took paul to coined the term bric in 2001 and launch the miranda took paul to now mint. >> bbc journalism. lunch. they had cocktails and rob spoke >> bbc journalism training. ♪ to ted. he cruised by to talk to ted. it is the zaniness of what wall street will do in courting republican nominee and selecting a republican nominee that can only get from max abelson a

bloomberg. how much fun was the story? >> a ton of fun. take a look at the chart with a green bars. any of these guys could be higher or lower than the other because the field is wide open. i think that is annoying to guys on wall street who have a lot of money to give and all they want is a good candidate who appreciates them. >> let's be blunt, they want access. nothing has been changed. >> they would put it quite differently. they would say they are immensely annoyed and frustrated by the landscape right now and feel the american government doesn't appreciate finance and what they can do. >> when you say landscape, are you talking about regulation, uncertainty, or talking about the demonization of wall street and main street? which may or may not be justified. >> all of those. don't forget, only a few weeks ago, dave camp, republican, proposed a huge bank tax. >> aren't they playing both sides of the aisle? as much as they contribute or

looking for new republican leader, there also to make -- donating to the democrats. >> not to give away the ending to my story, but the kicker is a guy who is friends with david and charles koch. if the republican party can't nominate someone who appreciates capitalism, hillary clinton -- and look at the background culture, big benefactor on the east coast, versus wells fargo who started out read throwing cars in minnesota, do they all courts these clowns the same or is there a different approach bank to bank? >> what i learned is, it is sort of like a two-way street. on the one hand, wall street is really eager to get to know the potential -- >> meet and greet. >> but on the other hand, politicians not only enjoy meeting with these guys, but need them. he wall street numbers, the numbers of how much money wall street gives up is astounding. i feel like it is almost a

cliché there's a lot of money in politics. it wasn't until i reported for the story and looked back to see him its money wall street gave candidate, only 10 or 15 years ago, it was nothing compared -- >> the president tied up all of manhattan yesterday -- i exaggerate a little bit -- doing a fundraiser. >> he was buying up gap sweaters to show people he is a regular man. >> private equity. gaps you recall, cap -- >> good morning, everyone. agreed to increase its wages. >> which republican is least in "bloomberg surveillance." i'm tom keene. with me, scarlet fu, adam johnson. betty liu only shops and stores love with wall street and bankers? >> on the chart we just showed, when there is an exclusive valentino dress. marco rubio was in first place >> why do you always make fun of and he is affiliated with the me on that? >> exclusive. tea party that has very mixed feelings about wall street. 's ceo will besack one good surprise, you never want to report a story where everything you learned is what you thought already. joining us could by the way, i i was really shocked to hear how didn't realize this -- this is the saks shirt i am wearing. much willingness there is among

the important wall street >> can i translate that? that is because we're -- that is donors to listen to the tea party. he had rand paul meeting with a cashmere shirt from saks for goldman sachs bankers. $482. 482?re you sure it wasn't $1 arnott needing with ted cruz. >> he will be talking with us investorig telephone about the struggles of traditional brick-and-mortar -- he is a big telephone retailers that adam knows very investor. >> the tea party in theory, well to the whole subscription shopping model. i don't know, scarlet, if you do this, but urge box and glossy social issues aside, abortion box -- issue aside, gay marriage aside, >> things come to you on a in theory, the tea party is a libertarian platform which is monthly basis. >> you subscribe. >> new business. smaller government, less regulation. doesn't that make sense? >> the president -- he shopped >> it does. -- you said something small and it >> the president at the gap, are is a big issue which is social issues aside. you kidding me? the guys on wall street i talked going to payt was to come under political parties -- they don't care at all about its employees more money. the social issues. of course he was going to go >> within this conversation, the there. >> this weekend must "saturday quote is great about the

night live"? establishment. >> the financial industry. >> elliot richardson and east i mean, come on, they've got to do that on "snl." >> can you imagine if you walked coast establishment. does it even -- into abercrombie & fitch? whole different story. >> does the finance industry make or break a candidate? i to benk as a reporter >> i'm sure the president has careful, even when interviewing walked in. betty liu, thank u so much. bankers, to not refer to wall street as it it is some sort of monolith. let's get to morning movers. 59% in the premarket trade, they make a drug that has been put on hold. that is the fun thing about the piper jaffray cut the stock to story. there are even people on wall neutral from overweight. they said there is no pipeline street who are still thrilled and excited about chris christie at this biotech firm to fall despite his problems. >> we need to get the other side back on if the fda decides destroyed is unsafe. not -- decides destroyed is and find out who silicon valley is backing. unsafe. not good news if you are a geron their number is just as powerful. >> is technology more of a left shareholder. >> governor chris christie's and with the bankers the right? >> i don't think that is administration is blocked tesla necessarily true. motors -- >> speaking of one-stop shops. if i'm not mistaken, i think rand paul is just about to go ,> i'm having a tough time have a really big fundraiser --

>> which make would be most comfortable at parm? guys, wrapping my head around this concept, that if you live in new jersey, you can't buy a tesla because somehow when the which politician and banker would be most comfortable there? company sells directly -- >> the places i go to are so >> got to go through middlemen, cool, that i don't think -- >> chris christie would be there. come on. >> chicken parmesan? apparently. i don't know the details of this damn right chris christie would law. >> it is like saturn. be there. >> philadelphia or new york tesla dealers are going, this is >> "interview between two ferns the best thing -- >> this us government just getting in the way, i'm sorry. , americanry quickly ." >> folks, i have no idea. >> he is lost. eagle also falling. morgan stanley cutting the stock we're more coming up. to an underweight. >> everyone is piling on. wearable technologies have tiny >> they're still looking for a screens that none of us can permanent ceo, as well. >> jim o'neill shops only a top read. it turns out there is a better way to read. we will explain. ♪ chef. >> he is a top guy. >> we have more coming up on

"surveillance," including what happened with that missing laois airlines jet. ♪

>> good morning. "bloomberg surveillance." we are going to get a dusting or >> this is "bloomberg niche. surveillance." that is chicago, illinois. they have a frozen lake i'm scarlet fu with tom keene michigan, frozen lake superior and adam johnson. our guest host is jim o'neill,

and frozen lake huron -- what is the other lake? >> you said michigan, huron, currently a bloomberg view columnist. also, alex kliment of the eurasia group. erie. let's get you company news from >>erie, there it is. the files of "bloomberg west." march in chicago. the makers of kenny crèche have priced their initial public offering. in digital bull -- king digital scarlet fu and adam johnson with us. also shares dropped $25 each. that is a complicated way of the company plans to us on the saying it is going to snow new york stock exchange to read tomorrow. let's get to some company news. we start with the head of all disease tb operations that will starbucks will test a mobile fund service to let customers overhead. leave the company next january. -- the head of disney at will out intem may be rolled to become arations some locations this year. starbucks now processes 5 million mobile transactions a week and has been looking for television director. tos for its mobile apps no replacement has been named. starbucks will test a mobile phone service that will let increase sales. and apple tries again to get some samsung phones banned. u.s. district judge denied the customers order ahead. it could be rolled out this request for a ban last week. it will ask the court of appeals year. the process 5 million mobile transactions a week and has been looking for ways for us mobile app to boost sales. in the case. again to get the twentysomething models are no longer on the market. samsung models that are no samsung phone span.

u.s. district judge denying the longer on the market. >> it just goes back and forth. request. apple says will ask u.s. court >> continuing to litigate over of appeals for the federal circuit in washington to review something that is old technology. the case. >> get over it, guys. the funds in question are 20 samsung models to longer on the model -- market. i understand it creates a president. -- precedent. >> this is interesting, moveon. former chair of particularly for those with older eyes. you have no time to watch a goldman sachs asset management, video, no time to look at an bloomberg view call missed, our guest for the hour. advertisement. our attention spans, well, they why are we so assessed with as theying a country are the length of a gnat. it is technology to allow for more readable and faster developed world -- >> i have no idea. reading. emerging-market? spritz chief executive officer joins us to discuss. >> some people might say that it is an apt. >> it is not an app. >> but it is on your phone and i certain cities in the u.k. are merging our kids. it is kind of riddick ash are emerging markets -- some people get to read better. >> it is integrated into webpages and apps. might say that certain cities in the u.k. are emerging markets. it is ridiculous. it streams words in a special >> alex kliment, you nailed of way. the weaker yen. it was the recognition point in a word in the same place. >> still so annoyed i did not as your streaming these words, your eye can recognize them

make more money out of it. >> terrible but where do we go from here? without moving. >> why is it different than just a bigger font? how badly does japan need a i'm a six weeks from having one mono -- 120 yen? letter per scoring -- per >> by the standards of for screen. exchange, that part of it is >> it turns out your eye has a pretty straightforward. range that he can perceive a word, recognize a word. for me it is kind of up and the larger the word, still the down. i can't see the japanese pulling eye has to find that point. off -- >> they can't manage the yen >> like you cannot process so many characters at a time? weaker. >> it turns out, 13 characters, >> the consequences for others with conference in. >> what does research show when get worse. elsewhere is on the rise, on top of the other it comes to how we best retain the information and process that things in china. information? >> it is all about focus. with the streaming technology and if you're eye doesn't move, inflation isted you can retain the word. slowing sharply. i don't dismiss the possibility that among the reasons -- it the problem is when you move your eye, you lose focus and some now are jumping to the next reminds me of 1997, 1998. word. you let this yen keep weakening, guys. >> let's pick up on china your brain is thinking about getting to the next word. people skim a lot -- >> forget about old farts like because there is no threat of me, does max abelson need your another corporate default looming. people are wondering how the

government will take this and software? >> you would love this. let the company stand on its you would be able to just own. >> the underlying messages that consume information. >> i don't want anyone disabled could china is deliberately to make fun of me, but my trying to move to a new, better, friends and i are going to be starting a book club reading open china. >> which means bankruptcy may be proofs. >> seriously? part of that path. >> yes, i'm a cool guy. >> of course it is. >> proust? out --letons that come >> they named a vegetable after they will judge it on the basis as we go. him. >> i'll have the chicken changing a lot. parmesan. >> this is "bloomberg surveillance." continue. the losers of the old china are focus,mentioned big. many commodities, for example. retention. >> i want to keep this i feel like when you're reading to really absorb the words and conversation going as we shift to the drama we will see other white house today. be moved by what you're reading, can he still do that? you look at japan and the game theory of japan, the kenny read poetry or a novel? >> originally i would say no. interdependency of china and all the trading world, we go over the independency -- is for your social interdependency and the game three of the g-0 world. post, e-mail, news.

how will putin observe what will you are consuming it. a book you really want to enjoy. go on at the white house? >> his teachers is to prevent i would have said no. we have had millions of people ukraine from joining the political -- -- does he acutely in the last two weeks since we went public talk to us about how they would like to use it. we a people who would like to see poetry this way. it is kind of like a treadmill. observant? >> the russian government will the words coming at you. it is effortless. you just consume the respond on monday probably label information. coming crimea into the russian perhaps if you are a publisher federation. >> what will he do if the chinese say no, you should do and want to publish information this way, you would change the that? > -- shouldn't do that? speed of this, the cadence of reading to give enjoyment to >> they probably did that about your readers. >> so you can slow it down? setia in 2008 good they >> the publisher can determine how it plays to you. >> does this principle apply for are always supposed to separatism. >> most americans, including me, other languages which uses don't know where ossetia is on a phrases instead of individual map. characters for comprehension? >> it is different. georgia -- no, folks, not atlanta -- with what is going on we are working with samsung for the first and limitation. in ukraine and crimea. korea and is a very dense what is the key distinction?

>> ukraine just matters to language. you're looking at syllablesit i. europe more. >> georgia didn't? >> well, it mattered less. chinese is different yet again. we haven't found a language this >> jim o'neill, what is ukraine doesn't work with. >> thank you. mean to nato? i can't figure it out. i need this badly. >> you do. >> as it stands on itself, not a why do we give everyone a report. great deal. there was a lot of tension but we talked about germany earlier in the week. before. poland is important in this things have calmed down a little bit. >> the ruble has not come back. context. 2 years ago they shared a european football championship together, ukraine and poland in principle are very close. as the ukrainian pdethat is the. >> and they are neighbors. did the two of you read four days in a row the brazilian riyal lower as well. >> you set up nicely for the fareed zakaria's "post-american next hour. world"? we're going to talk about the is it post europe world for emerging markets, the russian ruble, what is going on in ukraine with jim o'neill. ukraine? what kind of foreign policy are we seeing? >> ukrainians hope that it is a ♪ pean world. >> western ukrainians.

>> but even in the east as well. i think that is been overstated. the situation is much more complex even in these. >-- in the east. >> which other countries in the world are looking to that as a model for what they will do next? >> on other great contradiction of the whole thing, which is why the eu is so slow on all this stuff, why does the eu really want to embrace ukraine and not turkey? >> borchardt prime minister cameron do you -- what should prime minister cameron and do? >> try to have a good sleep. these are difficult to lead on. the germans have got to lead. >> how should he follow germany and brussels? >> as relates to the issues that the u.k. has gotten embroiled about, he needs to somehow avoid the emotion of some of the french political parties in the frenchd concentrate -- political parties in the u.k.

and concentrate on -- >> do the tudor question -- twitter question. >> oh, no. >> don't say "oh, no," jim. >> if it is a good one, i might steal it. >> i love it! home run. brilliant. but this is a really important thing -- >> whatever you do to make your rent. >> thought it was manchester united for a minute. >> and then it was on to egypt. so much of it is a lack of gdp. these tensions tie back to jim o'neill's economics. is changing expectations

in changing societies. we have seen unrest in markets over the past 2 years and not in situations of dire economic crisis. what we're seeing is a societies that have changed fundamentally over the past 10 years. it is a crisis of expectation -- absolutely. that is one of the more polarized societies as well. >> let's look at the stories that will shape the day. i have my eye on the missing malaysian airlines 777. 12 countries are involved in the news conference and it is day 5. no new news. >> the press conference before we started was challenging, to say the least. >> entire aircraft disappears without any evidence. my agenda, ukraine. the prime minister is meeting with president obama in the white house. in 10 seconds, alex, what is the most likely scenario that comes out of this? >> the contributions of the

eurasia group and jim o'neill's international economics, let's bring it up right now as we moved to april. the imf spring meetings. you never know what the agenda is going to become but already with the geopolitics, it is going to be a fractious imf meeting, to say the least. it is going to be extraordinary. willia -- will you be attending the meetings? >> i might attend a part of it, depending on some of my friends in acronym land. >> it would be great to speak to you and madame lagarde is all good jim o'neill, thank you so much could i hope manchester in that it avoids last place. alex kliment, thank you so much. " is up next.op have a great rest of your morning. ♪

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