the ecb we saw yesterday. they attacked the flechette. we look at the ramifications for america. daniel yergin and a little bit. first, to new york city. >> the world is reacting to the news that saudi arabia's king has died. he was believed to be 90 years old. he had been on the throne. his successor is his half-brother, salman. there is a question on whether he will change policy on oil. a new bond buying program.

italy france, and spain fell. european stocks hit a seven-year high. the euro is at its weakest against the dollar. in greece, the antitrust area party shows there's a six-point lead over the new democracy party. they have vowed to abandon austerity measures. lee's hutchinson is in talks to buyo o2 from telefonica. a deal would create the largest mobilephone carrier. turning to the nfl. looking for the culprit in the case of the deflated footballs. it is not tom brady, that is

what brady says. he professed his innocence yesterday. >> i feel like i always play within the rules. i would never do anything to break the rules. i respect the league and everything they are doing. >> his coach says he was shocked to hear that the balls had been under inflated. >> shocked. i go with troy a man. he says it is impossible for a ball to have been deflated and a quarter bar -- and the quarterback not know about it. >> you have a great lineup of guest. i will hand it back to you.

>> we do. the irrational exuberance. robert schiller with us. we can talk about the housing industry. that does not work. let's talk about the new edition of your classic irrational exuberance. how irrationally exuberant are the people of dollavos? >> we have a lot of talk of any quality among the people i talked to. the strong advantage point is the 1%. >> the 1% is almost back to

where was in the 1930's. do you agree? >> that sounds right. there is a you-shaped -- there is a u-shaped curve. in the 20's or so that, or even earlier, the highest 1% was in 1930 -- 1913. it bottomed out and now it is going up. it is back up to the 20's. >> you have a lot of common ground. the schiller area is how we behave. how we react to things. what will be the behavior of the people? >> i do not think many people understand what happened.

they will be told, they have been told that the ecb is doing what the u.s. did. everybody in europe knows the u.s. has had a better recovery. it has a recovery. it is plausible that a rational person would assume this is good news. >> it translates to interest rates, even mortgages in the u.s. lower, but it translates to the currency market. all the people of europe will no weaker euro against -- weaker eurowill know -- will know against the dollar. >> they are not american. they do not have the idiocy we have back to the revolution or before, back to the colonial

days, new world optimism i would suggest is lesser or not there in germany and other parts of europe. >> that is an interesting question. i have heard that said. i am thinking of the first stock market crash. 1720 it was in europe. it you can read up on it. it was a huge bubble and a huge burst. back then, there was nothing happening in the u.s. virtually nothing. we had a conference on the 1720 crash. yell students put on a play -- dal students -- yale students put on a play. >> you put a play on with economics? >> they did a play which was

written in 1720. it was the story of the boom, the bubble. >> let's get back to economics. we saw a lot of history yesterday being made. what are the ramifications for janet yellen when europe catches up with all of the games we have played. if this strengthens the economy, the weaker euro well offset some of the advantages. >> you provide a great leadership. can bob shiller say america has reached escape velocity? click -- >> s gave velocity? >> we are doing better. >> these are gut feelings.

we had a peak in the start market -- in the stock market and then we had a recession and another peak. these are seven years apart. recessions are coming around and they do not get predicted in advance. we do not have the art of predicting recessions before some kind of leading indicators turned down. this is not a prediction. it is always there. after we have been in a boom for so long, i get more anxious. >> thank you. he has thatat yale university, robert shiller. >>the news changes the

conversation. coming up, daniel yergin on the family of saudi arabia. this is "bloomberg surveillance." ♪

>> good morning, everyone. bloomberg surveillance from davos. they need the snow for the ski industry. some of the dynamics we are seeing this year. this is an important interview. you know the important contribution of recent years. we could talk oil, we could talk to the dakotas.

it is pushed aside for king abdullah. i want to take it back. i have been upset at media coverage. this is much richer. >> chevron showed up and paying him money for expiration rights. >> there may be oil on the east side. >> you move on. there is the burgeoning middle east with qaddafi.

constant has been a family. to get through faisal to abdullah and beyond, why has there been such consistent the? >> different tribes he married into abdullah's family was a rival tribe. after he conquered them, he married one of the ladies from there. that is how the kingdom was united. people have been predicting the british ambassadors. it is unclear how they can survive. >> let's bring it forward to today. there is the new canaan, a new crown prince, and beyond that, there is it mystery. do you have confidence they can maintain stability beyond the king and the crown prince?

>> there is an agreement within the family on how they proceed. they knew he was in firm. they will be looking towards the next generation. >> are they the moderate producer? >> the other swing producer is this country called the united states. >> can i rip up the script? how many victory laps? do you feel like yes, i got it right? >> it is hard. here, i remember people say you do not believe in peak oil. not really. we have seen peak oil. it has been followed by a glut. new areas open up and new technology. u.s. oil production is up 80%. >> for our viewers in the middle

east, in 1986, the price came down and went flat. do you predict that again? >> there are analogies there. it is a different circumstance because the u.s. is so flexible. the kind of prices where we are now would not sustain production over any period of time. >> the canadian tar sands are a different dynamic. where is the politically correct surveillance police? >> canada is going to add about five hundred thousand barrels a day to the world market because it is in motion. a new investment will slow down, but canada is one of the sources of growth.

canada has grown one million barrels. >> you move on to a whole series of books that say read history or you do not know the present. from the past, what can you bring forward for americans to say don't panic about the plunge and the whale? >> this is the first time in the last 80 years we have seen a surge of oil come into the market. every time you have weak prices you're talking about the middle east and back in 1931, when oil went to $.10 a barrel equal into a gas station, they gave you a free chicken to try to get business. every time it stabilizes. the u.s. is now the swing producer. >> what is big oil? how do they adapt to this? >> they're looking at their budgets and one company is 25%,

another is 10%. others are slower. going into 2016 you will see a further recalibration. the people who will have to adjust quickly. there seems to be about a 30% budget cut today. the work of daniel yergin is the idea of the high-yield market. everyone leveraged up. do you have a concern about the workout? >> when we look at our numbers it is about a quarter of a trillion dollars. a lot of high-yield and there will be a lot of people saying there are opportunities, who has dead. people are hedged through this year, but producers will have problems. >> we are down to 64.

it is not clear for russia. how link is the price of oil to mr. putin's future? >>'s budget is over 40% from oil. the budget expenditures are in rubles, so the dollars come in here. this puts a lot of pressure. russia is going into a sharp recession. >> does he micromanage the oil business? >> i think he'd pays close attention. people say he is like the ceo. >> thank you, your comments on saudi arabia. our twitter question of the day does the u.s. have the proper and right relationship with saudi arabia? we need to hear from you on that.

a beautiful friday. i am coming home tomorrow. it is "bloomberg surveillance." ♪

>> good morning. our guest host for that hour, leslie picker. tom keene is sharing with -- in davos. my morning must read comes from stephen carter. he writes fans should care because it matters whether the champions cheat areas fans

should also care because it seems the nfl left integrity on a private jet somewhere. this is what everyone has been talking about. it seems to be hitting a nerve because people feel this is something the patriots have done before. >> are we chasing it down because the headlines right themselves or does it have with the patriots? i was looking for information and when you google patriots the word that shows up next is cheating. no one likes a dominant team, except that teams supporters and they have been caught before. this is not new. it fits a narrative we have. >> professor carter writes they find ideas in the rulebook that no one figures out and they have broken the roles, and destroy the evidence, when the --

>> the thing i think people love about football is it is a democratizing thing to watch. they are more talented and capable. when you hear stories like this, it throws the ball's in the air. >> these things write themselves. aaron rodgers likes to over inflate footballs. he admits to paying someone off to tamper with footballs. this is a thing that happens. is it the patriot that everyone loves to hate. >> look as -- look at what has

happened in the nfl in the past months. ray rice and the video of him clocking his wife, which is beyond inexcusable. there is a sense the nfl is taking integrity to lightly. there is criticism that they are not being forward enough about health information with all of the concussions. >> it is a health risk. when you hit men for a living that is your job, you have to wonder what happened to your brain and your moral compass when that is your daily gig. >> please do not compare deflating footballs to savagely beating a human being. if you think these are comparable, you take football too seriously. i feel these things get inflated in a different way than he is implying. it is hard to see how the nfl is

jumping on this. >> i have to show it. really? really, daily news? >> that is their bread and butter. >> we are just getting started. we are going to go back to tom keene in davos. he is going to be joined by the president of the peterson institute for technology. ♪

>> good morning. let's get to our top headlines. >> cmn is descending into chaos now that -- yemen is descending into chaos. tribal leaders say they will not take orders from the capital. the resignation deepens the turmoil there for al qaeda to expand operations. starbucks said net income increased as new food and holiday drinks boosted customer

traffic and sales. they posted earnings in line with estimates. starbucks named kevin johnson as its next chief operating officer. cutbacks coming at dreamworks. they will go from three to two films a year. they are trying to improve the quality and profitability of its pictures. it will report expenses of at least $450 million for the restructured. those are your top headlines. tom, what is your top headline? >> after two perfect days of weather, we finally got some snow. we need to warm things up with adam pozen. he is taking over as president of the peterson institute. it seems like a good time to meet with you.

every camera every microphone is in front of you and you say forget about the gloom, optimism should rain. -- should reign. >> the u.s. is on a solid growth path. china did a solid growth path no matter how much they fiddle with the numbers. japan was on the upside. people were disappointed. most emerging markets have firm policies. the world is not just about europe, even though we are in davos. there is almost a j curve effect. the initial reaction is good news for bmw and the rest. where is the gloom for germany? >> they had some things they

were selling directly to the chinese. even if china continues to grow they are going to buy. >> what is the distinction between what they say and the pozen optimism? >> axle is focused on europe because that is where he served. he knows the whole world, but he is choosing to emphasize structural problems in europe. any of those people you mentioned -- >> the real burden is they think

unless portugal and greece become as competitive to switzerland and germany, nothing new will happen. greece may need a full-scale transformation. italy can grow even without complete transformation. >> janet yellen's world changed. we do not have a ruben dollar yet. >> think about how much the dollar came down and how much things have gone back. you have lost a lot of ground against the yen. it is above parity. chinese currency has been stable since the dollar. >> you cannot believe the food

cost. can i stop the show to say a bowl of soup is $22? i am not kidding. >> you study this for decades. we need to do it better. do you see any impediment to us in the future? things get messed up and we fix it. >> for all of the things we look at, it is amazing how unbalanced. there is an issue in our health care system. we would be better off if we were not throwing away a 10th of gdp away on wasteful health care. kids in the less welldoing schools are getting hurt. with greece or italy, that is not everything. >> let me bring it back to what we saw in the ecb. we will buy negative interest rate bonds.

that is not in the books i studied. what does it signal that a bank will manipulate, purchase, or hold a bond that is priced so high, the yield is negative. >> there is still too much fear in risk aversion. private investors are stuck in their flight to government paper that it is up to the central bank to offset that. it is true in europe. no one wants to invest. this is an overreaction. the central bank has to offset it. >> business as usual. we keep it going. this phrase that i do not like -- a structural reform. what is it? >> whatever wish list the people who are the creditors have at a given time. it is the fantasy. it would be nice to fire everyone in france the way we fire everyone in the u.s.

>> it will not happen. they have cultural economics in france. it is different than the united states and germany. >> they survive. they used to say scientists could not understand how the butterfly -- how the butterfly flies. somehow, it is still there. i would like to see france improved. i would like to see the labor market make more sense. that does not mean that just because they are not the u.s. terrible things will happen. this was a decade ago. should we have another plaza accord. stop worrying about the gyrations of the market. everything compensates and adjust out. as we go along, 20 currency pairs move. that is the optimism. >> i appreciate you remembering

one of the classics. look at what is happening with the swiss franc. a crazy appreciation. it is an overshoot for any evaluation. it involved a future appreciation against the dollar. you are right. you have to look past the whole thing and try to stick to fundamentals and hope it comes out in the end. >> with the pozen optimism, you are alone on this. there are not many people out there with you. >> i am terrible about equities. it is a clear implication that i am less worried that a lot of people. i am less worried than bob about overvalued stocks.

geopolitical risk is exaggerated. i do not mean that there are not terrible things happening, but the impact on market tends to be passing. >> we need to get back to something gloomier. adam pozenosen. does the u.s. have the right to proctor the correct relationship with saudi arabia? from the world economic forum meetings stay with us. it is "bloomberg surveillance." ♪

>> this is "bloomberg surveillance." it is time for the single best chart. >> we call these kitchen table issues. that is how we refer to what people worry about. it comes from gallup. the answer is a tie. when asked to name the biggest financial concerns, health care and low wages. colby smith is our chart manager. look at the lines on the bottom. those are taxes, stock market,

interest rate. that is what we talk about every day and that is what americans do not care about. >> janet yellen is worried about spooking the markets and going mainstream. >> my thought from looking at this, those are the thing people worry about every day. when you pay your taxes, it is once a year. every day americans put their money in the stock market and leave it there. it is so far down. economic models think about investing in the future, but the way most people work, all of

these things then need to be paid on a monthly basis. >> leslie you cover ipos. does the worry their match at what you are seeing? did the entrepreneurs think this is boomtime? >> boomtime, for sure. it is a trade people can -- you can look at an ipo and outperform the market. wages are a real issue. especially in silicon valley with, where you have to attract the talent. they have to protect the downside. >> wages are so high, they were caught trying to keep them low. >> that is amazing. >> silicon valley and tom brady why did you let us down?

>> we are going to discuss the hour. >> we have a correction yesterday. i mistakenly said the soccer club arsenal is moaned by iraq. it is not. >> time for the top photos. what do you think this is? this is a battery-operated drone carrying 6.5 pounds of meth. it crashed in tijuana, mexico. 6.5 pounds of meth sell out of the sky. it was unable to support the weight of the packages. at least 150 drug smuggling attempts have been made from mexico to the u.s. since 2012. >> i have talked to entrepreneurs -- i always think

about the submarines. number two, a beautiful photo from the arctic. a flipped over iceberg was spotted in antarctica. it revealed a deep blue color rarely seen a nice. i cannot beat the drum, but i like this one. president obama was interviewed by three youtube personalities. they are taking a selfie. the interviews were streamed live yesterday. they discussed topics including cuba, police brutality and the

video has over 650,000 views on youtube. >> we giggle about this but they can do a thing we cannot. >> what? pull in 650,000 people? >> yes. there is that way they speak that people do not find in us. >> clearly the president is trying to reach a younger audience. >> this is the same strategy disney is using with the star wars movies. >> coming up, we are heading to a conversation. this is "bloomberg surveillance." ♪

>> let's get to our top headlines. >> t-mobile will offer deals on new sweetheart phones -- on new

smartphones to people with bad or no credit. they will not charge interest. they previously made the deals to people with good credit. j.p. morgan chase and goldman sachs getting more cash in bonuses. jamie dimon received $7.4 million as a cash reward. his total pay was unchanged at $20 million. staying with the topic of executive pay, tim cook received compensation of $9.2 million. that is more than double his pay from 2013. it was made possible by the soaring stock price. he also received a cash out pay of nearly $67,000 because he skipped vacation. those are top headlines. davosin davos, tom and francine

spoke to the governor of japan. >> a wonderful conversation with him. >> he spanks a very good english. he was very charming and very relaxed. this is a very sharp mind. he is probably the one with the biggest experiment and the biggest firepower. we talked about the impact around the world, how he sees everything shaping up. i had to ask him about yen depreciation. i asked him if he thought the yen needed to be weaker. >> it made export more profitable.

not much as we expected. part of me -- the growth in asia. more than half of japan exports go to asia. >> he said he was not worried about the fact that the euro weekend. >> i have seen these bankers have a different toolbox. what is the toolbox right now and how does he compare it to the others? >> he has the full backing of the government. he says he can do more. he can do a lot more. >> he had to deal with 19 different governments who want 19 different things.

he can do it. he says he needs to be more creative. we asked him about the ecb and whether qe makes a difference to his thinking. >> it would be eradicated. growth could be accelerated. both of them would be beneficial to the world economy. we welcome this action by the central bank. >> if we see growth in europe, it will benefit the growth economy. >> he is probably more worried about tightening. >> you have to switch to french here. francine lacqua what a busy lady. >> thank you. a fabulous interview with the bank of japan governor.

back here in the u.s., -- kicks off its ipo. the company raise $170 million. they develop cloud-based services for businesses planned to go public a year ago, but delayed offerings when industry valuations dropped. leslie will be speaking to the ceo this morning. let's start with what your sources are telling you. >> early on in the roadshow they were can sintering raising the range. some of that has to do with the anchor investor they had yesterday. they decided to purchase about 10% of the shares at the offering price. that helps narrow the float size, that was the strategy they opted for.

>> the biggest concern box has is competition with microsoft. microsoft knows how to sell the businesses. >> microsoft knows how to sell to businesses and have the staying power to lower races. they compete on price is in the way a startup cannot compete. they have had to spend heavily on sales and marketing. they have about 17 months to live at the cash burn rate they are at right now. that is disheartening. >> you will be speaking to aaron leedy. >> i am going to say what is your profitability? >> cannot wait for it. let's take a quick check on the currency market. the euro drops against the dollar. that is the lowest level in

about 11 years. the yen is slightly stronger against the dollar and so is the -- the ruble is unchanged now. this is "bloomberg surveillance." ♪

>> from doavos, switzerland.

we look at corporate leaders in this hour and adjust to what we have seen in. davos. the euro continues to plunge. we need to go to top headlines with olivia sterns. >> the world is reacting this morning to news about saudi arabia's king has died. he passed away last night. he was believed to be 90 years old. he has been on the throne since 2005 and was the defect the ruler of the arab world's largest economy. thisis a successor is his half-brother. there are questions about whether he might change his saudi oil policy.

financial markets are adjusting to the european central banks new bond buying program. european stocks in another seven-year high and the euro is now on its weakest level against the dollar in more than 11 years. in greece the party is poised to win sunday's election. a six-point lead over the new democracy party of the prime minister. he has asked greece to stick with the wage cuts. the billing or is taking aim at u.k. wireless carrier o2 come in talks to buy it from the owner for as much as $15 billion. a deal would create the uk's largest mobilephone carrier.

the nfl, looking for a culprit in the case of the deflated football's. it is not tom brady. he professed his innocence yesterday. >> i have always played within the rules. i would never do anything to break the rules. i believe in fair play and i respect the league and everything they are trying to do to create a competitive -- >> bill belichick says he wasn't shocked to hear that the balls had been underinflated. the newspapers are having a field day with this. there is this feeling that we have been down this road before with the pats. >> this scandal is so beautiful. it is amazing. you see dunkin' donuts in the background so deeply tied in with new england's identity. there are people who are shocked at what has happened and deeply angered fans going, what did you

expect? >> you google pats and the protected search comes up -- >> cheating. >> let's hear more from tom keene who is at the world economic forum. joined by erik schatzker. >> the hockey equivalent is when you are playing a good team, you melt the ice so the faster team has trouble skating fast. erik schatzker never did this in his career in canada. i'm shocked. we are in. davos. the former head of the smb -- f andmb. >> it does not capture the size and power -- they have an excess of $4.5 trillion.

they are the largest investor in currencies, treasuries equities. they're talking about deflate gate in boston. we might as well call it inflate gate in switzerland. this was national bank formally run by thomas jordan eliminated the cap on the frank allowing it to zoom past the euro. that is what has everyone talking. this was national bank did not phone the runway or give anybody warning. citigroup lost $150 million. larry fink does not care about that. at least one of black rock's lost money. the real importance of this was national bank will not be known for a year or two. >> i would expect this was economy going into recession

because it will have to take time to adapt to the new currency level. if it does not go into recession and the economy continues fairly nicely, what does it mean for another economy? should germany been out of the euro? >> think about that for a moment. if the revaluation of the swiss franc does not crash this was economy -- the swiss economy what is that going to maine? the germans will want to lead the euro. -- leave the euro. >> i will rip up the script he appeared we have a bunch of countries in europe, looks like a chess match. canada is getting crushed right now. what does it mean for winnipeg versus toronto? >> winnipeg not so much.

>> alberta? >> a cheap currency might attract some investments into the industrial center of the country. it is terrible for alberta right now. dollar oil price -- it's a disaster. -- $50 oil price. >> calgary? >> a huge problem for calgary. they had to cut interest rates to try to attract some investment. the big concern in canada, it will feel more of a consumer -- >> the biggest concern is the lousy maple leafs. we are deflated out here. >> we are inflated with excitement right now because in the studio we have kevin roberts, detective chairman of soft teen -- you have worked all over the world.

right now, you are based here. you are trying to figure out how to sell to the american consumer. what is different right now? we have this economy levitating above the rest of the world. >> radical optimism. everybody believes -- you think of abc, americans have ambition, believe and commitment. this is real wherever you go. consumers are feeling more confident, jobless rates are the lowest they have been for 10 years, people are enjoying the deflation stuff. they are loving life more, which is tremendous if you're in the half trillion dollar advertising business. >> when did this change for you? when did it start to take backup for you? >> nine months ago. two things happened. you have being and yang. to get the growth of the u.s. you had the gloss come off the

famous brick markets. -- you have being andying anfd yang. china's growth is fictitious. russia's growth is like a homeless man with a machine gun. very dangerous. india you have the right primary strand the right program but execution and strategy are to two different things. the role is looking for fast-growing market. the fastest-growing is right here on our doorsteps. >> what are the consequences of these conversations we are happen with these leaders? we have the bank of japan governor sankey might have to get more creative. -- saying he might have to get more creative. >> you are quite right. you look around, britain looks like it will be strong and

coming back. germany will have a tough year. spain and ireland have done the work. greece in an abject state of denial. it's not just a river in egypt. italy is in sort of good shape. you look at the rest of the world, latin america and you go to africa, not this year. >> the brakes -- for so long, we've look at them as growth. you can decide not to engage there. brazil looks bad right now. mikey -- nike has made huge investments. you can get them up because they don't look good right now. >> you need to be there but you need to be there cautiously. judges about making choices that's all. if you make choices now and look

at these famous fast-growing markets, you have to have the u.s. front and center. that's where all the innovation is. what innovations coming out of france? >> the owner of neglect there you go -- the owner of -- >> there you go. next? >> so glad we had before the whole hour. thoughts on russia. we will be back in just a moment with more on bloomberg tv. tom will be joined by the columbia university professor lee bollinger. ♪

>> happy friday. this is "bloomberg surveillance ." >> my morning must read is from the editor at a daily in germany. she wrote an op-ed in the new york times germany is not turning backwards. islam is part of germany. it was an assessment rather than in the logical statement -- an ideological statement. you have worked all over the world.

one of the things we're watching right now is transformation country by country in europe. problems that have not been addressed by the major parties and are being taken up instead by the fringes. are you worried about germany? >> i'm not worried because i think it's a good thing. most of europe has gone into the boring middle and has gone bland, bland bland and totally centrist. there is no point of view. there is no ying and yang anymore. leaving room for extremists to go, wait a minute, no one is listening. we are being completely disadvantaged. this is a good thing. >> our advertisers targeting the multicultural audience? my friend got some diapers delivered yesterday and you cannot tell up the baby was asian, latin or white. using the same thing happen?

>> if not, they will be out of business. advertising is way behind consumers anyway. the power has switched from the media from brands to the people. you see what's happening. we better respond to that and reflect that come not continue to imagine -- look at soccer. the national institution in germany. they are the world champions. in the past, their team has been 11 germans. now, you have turks, every nationality. for presenting this nation getting behind the passion of football. >> the germans really noticed the soccer team. it makes a big difference. >> they can now beat brazil. >> they can now beat everybody. >> england is a powerful sleeping force. >> someday that giant will roar

again. it will all be ok. >> alarmingly nationalistic. kevin roberts, we will be back with you in just a second. we go to athens. we will talk about the election battle as it moves into its final stretch. this is "bloomberg surveillance ." ♪

>> good morning. this is "bloomberg surveillance ." let's get to our top headlines this morning. >> uber trying to restore its service in new daily -- new delhi. they will hire drivers who recently passed police background checks. general electric tops fourth quarter earning estimates as the

company boosted sales in the power and water business. adjusted profit climbed 4% to $.56 a share. ge was forecast to post earnings of $.55 according to an average of 14 analyst surveyed by bloomberg. cutbacks coming at dreamworks animation. shedding 500 jobs or 18% of its workforce. they're trying to improve the quality of profitability of its pictures after it had several box office flops. those are your top headlines. we will get back to,, colder than he should be in davos. >> it gets very cold this weekend, six degrees here in davos. in a conversation with lee bollinger -- we could talk about higher education, no.

lee bollinger is one of america's experts and thinkers on free speech. all of this important with the uproar in davos about three al jazeera journalists jailed in egypt. we will feature my conversation with him later in this hour. you are truly an expert on it. what does it mean to the world when a nation like a egypt jails three journalists? >> it is very, very important. more important today than it was 10 years ago. in a global world with the movements around the world of goods and information it is critically important what happens in every country. when a journalist is jailed in egypt, it matters hugely to everybody including in the unite states. -- united states. >> when you wrote the tolerance of society, things did not

move as fast. our journalists fred -- our are journalists a threat? >> there is no question that journalists feel more beleaguered and under threat today than at any time. it is sadly going to increase because as the world gets more interconnected because of the economy and technology governments are going to feel more threatened, authoritarian regimes feel more threatened and the response will be oppressive. it's important that we build up international norms about freedom of speech and press. >> how odd is the american thought on free speech? are we alone in our view?

are we discrete and separate or are there more people towards the american thinking? >> couple things to note about the american system. it is extremely protective. the most protective of speech and press of any country in the world and any country in history. it's very important to realize that only happened in the last 50 years. there were cases in the 1960's and 70's that developed. before that, it was a mixed view about freedom of speech and press. that process with different kinds of understanding has to take place more now on a global scale. there is already international norm. article 19 has a strong statement about freedom of speech and press for the world. it's critically important that we take this to the world and have discussions about what the

norm should be. >> if i go up broadway you go through the different cultures of new york city and get to morningside heights a wonderful bookstore and this and that. could charlie hebdo be there? >> absolutely. in the united states, that is totally protected speech. it is different in europe, not in the sense of protecting that but in the sense of having laws that forbid an incitement of hatred. that is not what this cartoonist is accused of but there are differences on the outline of freedom of speech at that level. charlie hebdo would have been protected in the united states absolutely. >> the left and right hate you. >> thank you. >> it is true.

you get it from both sides. within the politically correct wars, who is winning the battle right now? >> i think the politically correct wars are basically over. that was a moment in time in which there were a lot of reasons for that. today, it's a much more serious -- the questions about how the global world is going to be put together, what kind of norms are we going to have. openness is a critical one but there are others as well. secular states versus religious states questions of things like food production. what do people think about genetically modified foods? these are now global issues that have to be resolved and they are less prone to what we think of as politically correct. >> at columbia, there is never enough economics. think you so much.

coming up, my conversation with egypt's president. all of that, next on "bloomberg surveillance" from davos. ♪

>> this is "bloomberg surveillance." i'm olivia sterns. we will get back to tom keene in a moment. here are this morning's top headlines. bank of new york mellon says fourth quarter profit plunged 57% thanks to higher fee revenues. the bank has been under pressure from activist investors to live its share price. the leaders of j.p. morgan chase & co been sacks are getting more cash in their bonuses this year. jamie dimon received a $7.4 million cash award. his first since 2011. while keeping his total pay unchanged at $20 million.

blankfein received one third of the bonus in his $24 million package. apple's ceo received compensation of $9.2 million last year more than double his pay for 2013. the hen's package was made possible by a soaring stock price. -- the enhanced package. those are your top headlines. that sounds nice. a couple million boost for not taking a holiday. >> i take all holidays and all sick days. millions of americans are preparing themselves to bid a fond goodbye to the country's favorite pastime, football. the super bowl scheduled for next sunday and it's over for a wild. advertisers and companies are rejoicing. kevin roberts has been watching

this. you are a soccer and rugby guy but football is king here in the united states. it is only becoming more so. that was a question. >> that was a question? >> what part of -- it does seem like sports is what is having television. life events are the only thing people are willing to pay for. >> that is not true. live sports are vital because you get a huge audience gathered there at the same time the same demographic doing the same thing my feeling the same emotions. advertisers think it is heaven. they will pay 4.5 million for that. the biggest event at the same time. what is happening on tv, what's

happening to dreamworks today is a direct result of what's happening on tv. all the talent are writing brilliant, brilliant tv shows. who misses the blacklist or game of thrones or justified? these are amazing shows. tv has something else -- it is 40% of the advertising spent in the u.s. >> you have to complete the strategies. you have to get in front of people while a life event is happening and that is different from figuring out a way to make your brand be a part of a weekend full of justified. >> if you think of that, you are screwed. they are not different things at all. it is not either or. you have to be part of the conversation in advance, to become part of the dialogue. they have to watch it and you have to be part of it afterwards. >> a client says it's $4.5

million. i'm radioshack and i'm about to go bankrupt. you tell them it's worth it? >> for radioshack, i would not. for toyota and so forth as long as you invest in a great story. you talk about the funny ads and sexy ads but the ads that work on the super bowl are the ones that have great emotional storytelling. that has to be at the core. >> are we going to be a re-create success from football with other sports? >> it will be difficult because of the drama, lack of physicality. nba have done pretty well. look at where basketball has come from to where it has got to now, these guys get 2 million viewers all the time. they have come closest. >> may be the key is to get

matthew mcconaughey behind a cadillac. >> you mean lexus. >> this is "bloomberg surveillance." let's get back to tom keene in davos switzerland. >> thank you so much. this is an important interview. changing the dialogue on the american ways -- a bombshell for all of corporate america. you will not make minimum wage for you will make a real wage. did you make this decision unilaterally? >> and started a couple of years ago. i was hearing from employees in the social media dialogue that

they had a hard time making ends meet. i asked the team to give me a view of what are people up like an is about 5700 employees who are single mothers who work long hours. they had some kids on medicaid because they cannot afford our own plan and some are on food stamps. i don't think this is right. we are a big company and we are doing well. how do we help these people live better lives? >> what does it do to your shareholders? >> it is not a lot. it is 25.5 million total. we did wages and benefits. if we do too much on wages, they

lose benefits. we need to make both work. it's about how high we can get their pdi. it's about 10 million on wages and another 15 million in benefits. >> are you a pariah? >> it's interesting. the dialogue among ceos is changing. a lot of people are asking -- some say i'm embarrassed i did not do it first. how did you do it? >> how did you get your board to do it? >> i told my board i was going to do it. we have a new light and board -- and enlightened board. we've had our own charity since the 1970's. >> the debate over the american wage -- there is almost a culture of individualism. not of a socialist theory but it

gets away from the individualism of the last 30 years. you can't cut it in hartford connecticut with what we are paying you, we have to adjust. does it signal a seachange for corporate america? >> we need to look at the numbers differently. it is not higher wages mean higher costs means lower earnings. these are knowledge workers interacting with our customers. they give great service, we keep our customers, they are happier, they recommend us. why wouldn't we make it -- it's an infrastructure investment. >> part of that is retention as well. if american executives work their employees to hard -- too hard, nobody takes vacation. you have not had a vacation since 2004? we have to be more measured in

our labor relations. >> we have to be aware. we have to understand. if we don't, the dialogue will be taken away from us in some of the else will do it. -- and somebody else will do it. the government is too inefficient to deal with income disparity. we should do it in a way that makes people better and invests in their futures and has them come along the recovery because the more people out of recovery the better the recovery is. >> whenever anybody things, it is the change agent of labor economics in america for 2015. think you so much. -- thank you so much. coming up, highlights from my interview with egypt's new president president el-sisi. on the three journalists jailed in cairo.

from davos switzerland, this is "bloomberg surveillance." ♪

>> good morning. this is "bloomberg surveillance ."

or two days away from greek elections. this will be a vote on whether or not the past five years of austerity has been worth it. the party has been maintaining its lead ahead of the vote. great to see you on the ground in greece. tell us what the mood is there. >> obviously, there's a lot of excitement and tension ahead of this sunday's election. the widespread expectation is that seriessyriza will win the election. what happens then? will he be able to get a better deal from the rest of europe for greek spell out -- greece's bailout? >> you have looked at what it will demand if it wins and what people are willing to accept. is there hope that they a

negotiation might work out? >> there is some hope that a negotiation will work out. at this point, everybody is sticking to a hard-line. germany and the rest of europe is adamant that greece has to live up to its obligations. there is an expectation among many that after the election, it is possible that syriza will be forced to form a coalition with another party to give them the pretense to be a little more softer or not go for everything at once. >> everybody here in the u.s. talking about qe from mario draghi. will greece see the benefits of quantitative easing in europe? >> right now, you have the

existing government using the qe announcement for their own line. qe could benefit europe -- benefit greece as long as it stays on its current bailout cap and becomes eligible. the are using the qe announcement as an argument to vote against syriza on the premise that they would create disruption and possibly exclude greece from benefiting from qe. >> great stuff. we will talk to you again on monday morning. thanks so much. >> kevin roberts, you are not just here for such he and sat sheet -- do you look at what's going on in greece and see hope that there could be a real discussion? >> even i find this difficult. we just got some research on how people in countries view other countries.

you look at greece, lowest of the low. the people in germany and u.s. top of their rates. what is that telling you about how the greek people are feeling? have you met a greek anywhere that believes in austerity? >> no. short answer. please answer out with a question of the day. -- our twitter question of the day. ♪

>> happy friday. this is "bloomberg surveillance ." we will get to tom keene in davos. >> honeywell's fourth-quarter profits surpass estimates. the global oil -- adjusted eps came in at $1.43. analysts surveyed by bloomberg had expected $1.42. a big first quarter profit for starbucks. net income increased 82% as new food and holiday drinks boosted customer traffic and sales. the copy posted earnings that aligned with estimates.

-- the company posted earnings that aligned with estimates. t-mobile says it will offer deals on its new smartphones to customers with bad or no credit and does not matter how they pay. it won't charge interest. they made such deals available to those with good credit. the must pay their wireless bill on time for one year to qualify. those are your top headlines. we are blessed with kevin roberts. we were looking last hour at a photo of the president posing with youtube stars. he had them come to the white house and interview him. this is really important branding. is the white house forward thinking on this? >> i think they are doing the right thing because all of us have become screenagers. we are all involved in screens. for the leader of the nation to

be saying i've got kids and family, i understand the way you people are reacting and i want to be part of that, i think it is smart. >> there he is speaking to a woman called glozell. are these people on your radar? i'm the closest person to a teenager onset. i'm not familiar with these people. >> brandon is not in this millennial -- >> i just look young. >> do your advertisers care? >> they do very much. our people care. the average age of my people is 27. you would fit in beautifully. >> with your 27-year-old which company is the furthest ahead on this? >> facebook. you see what's happening to them with video.

if i were youtube, i'd be looking at facebook going, oh, boy, here they come. >> how do you figure out what network is coming? with social network rises it starts selling advertisements that become not cool. is this a regular pattern? >> look at instagram, moving very quickly. we are behind consumers, behind the early adopters. where you need to be as with them. not ahead of them are behind them. it is impossible to predict. i haven't got a clue. >> what is facebook like as a business partner? >> they are professional growing, eager to learn, aggressive and empathetic. >> are the innovating? >> constantly reinventing and transforming. as our google. these guys have realized -- iq

plus eq plus dq -- >> is somebody putting this on a screen? >> iq, hire smart people. eq, people who are empathetic and instinctive. tq better be head of technology. bq, bloody quick. >> very funny. i like it. >> what is the company and doing the best job of moving beyond the u.s. market? >> the company that we are looking at most is uber. these guys are right ahead of the shared economy of information. it is all technology driven. they are very adaptable. these patients are fighting

them. -- the institutions are fighting them. a sure sign that they are on. they are doing it fantastically. >> so much fun having you on this morning. we will get back to tom keene on a roof in davos switzerland. maybe things are getting too expensive. you just had a huge interview this morning with egypt's president. what are your highlights from that conversation with el-sisi? >> an amazing conversation. this is the former general and now president of the arab republic of egypt. we talked about investment and a bit of economic growth but front and center for all the journalists is el-sisi on the

three jailed al jazeera journalists. i was thunderstruck by his comments. here is president abdel fattah el-sisi. >> we don't have any interest whatsoever to put any citizen under detention, journalists or otherwise, outside the rule of law. but there is a point also i would like to highlight here. we are trying very hard after four years of turbulence to regain the rule of law and to uphold the independence of the judiciary. >> i was just amazed how forthright and overt the president was. >> rule of law? that really sounds like a code word for returning to our relationship with egypt, which is so long as whoever is in charge in egypt will get our

support by providing stability. >> rekindle investment in egypt. saudi arabia with the passing of king abdullah, real tension in iran and qatar. >> the more investments which come from americans and europeans into egypt, the healthier the economy becomes and the more human rights can be responded to. the standard of living of the simple and forward -- >> el-sisi linking investment directly into the human rights question. you can see the entire interview at bloomberg business. >> it is davos. i hear you have been having some fun at the espresso bar. who have you been hobnobbing

with? >> three or four of them. one that is really front and center. there was a lloyd blankfein this morning having a triple espresso. we talked about the ecb and euro as well. >> that is a surveillance strength drink. thank you, tom petri we want to get to our twitter question of the day. does the u.s. have the right relationship with saudi arabia? "no use the change in leadership to seek liberalization within the kingdom." "we aggressively preach basic freedom to other nations. time to add the saudi's to the list." "like the weird uncle in the family. he is coming for thanksgiving." i go back to the hillary clinton quote in the trailer for

homeland. she says you can't keep snakes in your backyard and expect them to only bite your neighbors. i wonder if the president had anything to say about that. so much criticism that saudi arabia is the home of this extreme form of islam. >> first of all, they are the predominant ally in the egyptian recovery. i would go back again to what daniel yergin told us this morning. a decades long relationship instability will be the first order in the next year. >> we will leave it there. thank you so much. we are looking forward to having you back in new york monday morning. "bloomberg surveillance" will continue on radio.

"in the loop" is coming up next. futures pointing to a slightly higher open. have a great weekend, everybody. ♪

>> good morning. it is friday, january 23 and we are live on bloomberg rolled headquarters. we are 90 minutes away from the opening bell. we will take you to the

outskirts of high-level finance. lloyd blank fine and jack lew. -- lloyd blankfein and jack lew. both guys joining me right here -- here is a look at our top stories this money. transition in the arab world's largest economy. king abdullah died last night. he was believed to be 90 years old. he had been on the throne since 2005 and was a successful ruler before that. his successor is his half-brother. he takes over at a time when oil prices are falling and the threat of islamic militants is rising. saudi arabia has joined the us-led military coalition against islamic state in syria. the present of oil rose as much as 3% on that news.