york, 6.3 inches of snow in central park. the new york stock exchange will be open to trade. russia stocks decline. the ruble weekends. standards and poors delivers mr. putin a junk rating. live from new york, tuesday, january 20 second. joining me, olivia sterns and brendan greeley. our top headlines, at storm central. >> remember the storm of historic proportions? it's a little bit that outside but not that historic after all. the national weather service peeled back its forecast. at 22 feet in boston. travel at a standstill through the region. airlines have canceled more than 7000 flights. drivers ordered off the roads.

for millions of children, a snow day. the european union moving closer to imposing more sanctions on russia. and escalation infighting in ukraine. latvia's president says the eu is likely to expand the list of those facing asset freezes and visa bans. vladimir putin says ukraine is responsible for the violence. >> european finance ministers willing to work with greece's new government if the new prime minister drops his demands for the country's debt to be written off. europe may extend the deadline for greece to qualify for its next aid package. word of another government intelligence gathering program aimed at drivers in the u.s.. the justice department has built

a database to track vehicles in real. and intelligence gathering program that involves storing hundreds of records about motorists. the goal is to fight drug tracking -- drug trafficking. >> in pro football, robert kraft, new england patriots owner, says his team may be owed an apology. he says if the nfl fines the patriots did nothing wrong over the deflated football scandal the league should apologize. fox sports says the nfl is focusing its investigation on a patriots locker room attendant. those are our top headlines. particularly in new york, we will give you continue coverage on the storm. the summary is simple -- not as bad as expected. still serious with school and airports trains shut down. equities, bonds, currencies commodities, worsening futures , -1 euro-dollar0.

-- features -10. crude oil, 45.63. vix under 16.52. dow, we'll take it. ruble ugly off the shock of the s&p downgrade. let's go to the terminal. stability in russia. the angst before down we go putin. >> just looking at putin's internal monologue, i got it, we have reserves. wait, not enough reserves. >> we spoke to s&p, who downgraded russia to junk. the reserves are a little bit more "puny" than we thought. >> what a terrible thing to say

to vladimir putin. >> in davos and here as well the under report of what is going on in ukraine. what you said about the eu is a huge deal. >> looks like the war is back on and ukraine. this time we are not making a front-page story. >> we have foreign minister meetings in european countries that normally mean nothing. right now they are very important. >> do i look ok? the big debate was buttons or no buttons. >> you look very apres ski chalet. >> we look like we are from a ski movie. >> we understand a serious moment, particularly up towards boston. 3 feet has become 2 feet serious snow in new england. >> dangerous roads and falling trees. >> we will show photos.

walking in this morning was gorgeous, spectacular. >> i walked down park avenue and it was empty. >> i bumped into tom keene at 3:45 in the morning and we went shopping. >> our studio working this morning. what i would say within the celebration of this is the exchange stays open. something about a history of the markets, you've got to stay open. richard rossasso taking a lot of criticism. >> not only the exchange, a lot of bodegas. making the decisions on what actually happened. >> for the wealthy, storms are fun. for a lot of people this is not fun. >> we had the option to have our employer put us in a hotel

nearby. i was not in the four seasons. it was an option. >> the long island railroad shut down. >> if you are an hourly wage worker, if you do not show up, you are not going to pay your cell phone bill. >> restaurant people working last night as well. let's link this to commodities. jim is a different weather person. he looks at the weather and how it folds into commodities. we speak to him from florida. many people on bloomberg radio know him from many appearances. what will the storm due to natural gas? >> we've got to play this down a little yesterday afternoon with two feet of snow in boston. not much more than a foot in new york city. that does not really affect the market that much. natural gas is up because we are seeing more cold and storms on the way 5, 10, 15 days from now.

the next short position in the market, i think we will see that reverse and higher prices. >> do professionals trade a blizzard? >> if they do, they are making mistakes. usually it is a short-lived effect on the commodity market. sometimes it has more than effect on equities. a generating company people buy generators to heat their homes when power goes out, that is at 5 percent since yesterday. a lot of energy markets were down. the one thing you can do during a blizzard, buy heating oil and sell crude or gasoline, that is one spread that will work. >> you wrote us an e-mail that you want to look at utility stocks. buying on the rumor and selling on the reality. >> unless you have a winter like

last year, five snowstorms and three months of cold weather that it affect the economy. and the 2014 gdp. you're not going to see anything other than a short-term reaction. you got to look at a long-term trend, where can we find that? possibly in the natural gas market, low levels currently and cold weather through march. the market is oversold and we will see a rally. >> i assume the utility copies have some kind of insurance against these events. >> many find insurance policies. the biggest effect i saw in the bond market and utility stocks before many companies had insurance was during hurricane andrew in 1992 which wiped out florida and the gulf coast.

it was more than impact on commodity markets than katrina. >> thank you so much, joining us jim who covers the commodity markets. if you traders trading the blizzard. >> we will be handled by bloomberg television and radio giving you coverage. brendan, you live in the wilds with the person-- with deeper snow. shut everything down. >> i have to say, jim was talking about the market for generators. if you do not start your generator up every month you will not have it when you need it. >> a home tip from brendan greeley. >> it does have an impact, coach delayed results. they were supposed to do it this morning. either way rain, sleet, or snow, you will buy your iphone. tech,next.

enter our twitter question of the day. what are you doing with your snow day? tweet us @bsurveillance. this is bloomberg "surveillance," streaming on your radio and bloomberg.com. ♪

>> good morning. bloomberg "surveillance" from a stormy new york city. casual today. i walked in through snow drifts,two and a half blocks. >> one of these snowdrifts got up to my ankle. >> we are following a lesser store and then we thought 24 hours ago. we will have that for you.

olivia, the big event. >> apple earnings. $65 million, that's the number i'm looking at -- 65 million, that's the number i'm looking at. the number of iphones apple is forecast to have sold in the last quarter. roughly the population of france. that should blow your mind. cory johnson crawled out of bed in a snowleess san francisco to preview apple. i saw you wearing a hat. talk to us about apple. is it about the iphone number? what should we be looking for? >> this is strangely, for the market, those who trade of this, a crucial quarter. a full sale of iphone 6 and six plus sales, a new iphone. two years before that when we had iphone 4 and iphone three

releases, we had big moves. the stocks sold off quite a bit. one of the things we might walk a from when we get results tonight not just the importance of the iphone, but the importance of apple and china. it will illustrate the position apple is in. they do not lead in market share. they have only about 20% market share but 80% of industry profits. china may be the biggest market for the iphone. >> compare and contrast 89 billion microsoft versus apple almost double that one hundred 55 billion. should we see a use of cash announcement this afternoon? >> i don't expect anything like that. they've already laid out their plan in terms of repurchases and in terms of deploying capital. with whatever they are doing in terms of management. one of the things in terms of capital, they have used it and clever ways to provide financing

for vendors, companies like foxconn to buy equipment to make the iphone special. they have been clever about use of cash. i think it was notable last night that microsoft called an end to their buyback in 2016. their buyback will end next year. i think that is one reason the stock traded off after hours. >> for microsoft, they missed estimates for revenue on licenses for windows and word. they still made $10.2 billion. that is incredible, even if they are slowly getting out of it. >> i think this is going to be the last quarter where microsoft benefits from the surprise we had when pc sales ticked up in spite of all the moves towards mobile and tablet. because they stop supporting windows xp there was a rush to corporate upgrades and we saw a bond in the third quarter and a lesser bump in the fourth

quarter. that aided satya nadella in his first quarter i see you. that is not happening anymore. in the discussion, we can see that the growth in unbilled revenues, what they do not copy deferred revenues -- call the deferred revenues. that is not as great as some bulls might have thought. a new period where sledding is going to get tougher. >> what about fx? apple had to raise the price of iphones in moscow because the ruble sold off. is the stronger dollar going to bite apple? did you see it in microsoft? >> we saw it in microsoft, we are going to see at an apple and over the course of the next four months. fourth quarter fx. for a handful of tech companies

particularly in europe, companies like cisco. nearly a third of sales are in europe. they are going to see some serious fx headwinds. we could be in for some negative surprises. >> a wildcard. we dearly appreciate your getting out of bed at 3 a.m. to join us. >> we will look away from the storm. some storm data coming in from massachusetts. plymouth rock gets buried. richard haas will join us with a consult on foreign relations. his important essay on saudi arabia. from a stormy new york city good morning. stay with us, bloomberg "surveillance." ♪

>> good morning. bloomberg "surveillance," i'm tom keene. the markets will be open today. even though much of new york city is close. a morning must read. >> this comes from klaus, he advises companies, telecom companies on how to deal with wi-fi. he wrote that they are going to offer a cheap wi-fi-based phone service. wi-fi services can carry a price of zero to ten dollars a month. this will have consequences for the mobile industry. in the studio, richard farley, a partner at paul hastings. dressed with class. no sweater. >> i made shorture i -- i made

sure i had a two inch heel. >> you've spent your career advising companies. one of the things we are seeing with verizon and at&t is the possibility that these tens of billions of dollars they have spent on spectrum acquisition and infrastructure might be a stranded asset. >> that is the history of the industry. you have to see which investments will pay off and which will not. good that's an bad bets. it is a massive consumer of capital. it keeps us busy on the financing side. we will need to keep a close eye on where the opportunities are. >> when you are looking at wi-fi and spectrum, they are buying licensed spectrum they own the license and only they can use it. >> you are going over my head. >> i'm getting there. wifi anyone can use it. if you have a wi-fi router

anyone can use it and it is cheaper. >> my seven-year-old question how disruptive is this for t-mobile, sprint, for the broadcast carriers? i have a note from jeffrey's saying they think wi-fi telephone products are unlikely wireless disruptors. >> at&t, for example, is using wi-fi in stadiums. much better than their old way of licensing. if you have a bunch of people, the signal drops. wi-fi can handle that. at&t is impacting areas like subway terminals. what they really need to do is hold onto the revenue stream. they are charging you $150 a month for access all of her. it turns out that half of what we download on a mobile device comes off of wi-fi. but we are paid 90% to a telecoms company.

>> and the security concerns are interesting, too. >> do we have the same coverage via wi-fi? you do in europe, tom was able to facetime us from the top of the swiss outs in davos. can you do that in the u.s.? >> you cannot. >> that is why the announcement from cablevision is interesting. it turns out they have a wireless network. they are installing routers all over that do not just give you access, but anybody walking by. they are slowly building out. >> do the people walking by use my router? >> they do, if you are a cablevision customer. that is what is going on. cable companies are turning into wireless companies. >> can people hack your phone calls? >> anybody can hack anything. >> i would think that would be serious. >> the new wi-fi standard does have better security. yes, anybody can hack anything.

>> you have done so much on this for "business week." the basic thing that all of our viewers feel, they are in the car, on a signal they are going down the road and the signal changes and then it changes again. how long do we live with that? finally you have to restart your phone because the antenna is messed up. >> i would frame it differently. what you are talking about right now driving down the road and getting a signal, that is turning into a niche acase. you are at work with wi-fi and at home with wi-fi. the amazing thing where you can walk down the street and face time that is only a very small part of the way you are using data during the day. >> it is a very big part of the weight tom -- the way tom uses data, walking down the street on facetime. what about in a disaster? is the signal more or less

reliable over the internet? >> more reliable because the cables are buried. the signal strength, if you are near a wi-fi tower, it is better than from a signal far away. >> a quick data check, futures -10. the market trading today. >> we are expecting a slightly lighter volume. enter our twitter question. what are you doing on your snow day? will you be trading? tweet us at @bsurveillance. ♪

>> good morning. "surveillance" storm central. three feet and boston has become two feet. at 1:00 a.m. this morning some snow in central park. matt miller stuck in a snowdrift in bronxville. what have you observed this morning? >> you know what? roads here are pretty clear. they have cleared off the platform. the metro north is not running and will not be running for the foreseeable future. they are still running test trains and work trains.

the tracks are not covered in snow. to me as a kid from ohio i grew up and it snowed a lot. it was normal and not a freaky occurrence. >> i have one more question. how many coyotes died to make the hood on your coat? >> i am pretty sure they were factory raised coyotes and treated very kindly. we are going to drive around and see how things look. i'm going to pick up stephanie ruhle, she is stuck where cool people live. tribeca. and she can't get an uber. we are going to pick her up. i have a box of peanut butter filled pretzels from costco. we are going to see if we can

deliver her to the bloomberg building by the time "market makers" starts. >> there was a run on food. >> we live on long island and i bought candles last night. [laughter] i bought shovels. matt, my family is in nassau county, could you get word to them that i am safe? [laughter] no problem, i can drive over there. we can get anywhere. [laughter] >> matt miller, thank you from bronxville, new york. the governor and the mayor and other authorities have said get off the roads. i believe fines are involved. >> we are operating out of an abundance of caution. in europe greece tops the agenda. eu finance ministers are meeting. a packed week for officials who will convene thursday for an emergency session to discuss the

escalation of violence in ukraine. jon ferro and hans nichols are with us. the volatility around the russia n ruble has that been priced in? >> people were expecting the move from standard & poor's to junk for the first time in a decade. a weaker off the back of it, today, a stronger ruble. the credit rating agency is an opinion and not a leading indicator. 68 rubles for a dollar, high inflation and a limited ability of a central bank to respond to a crisis that will head into 2015. >> the u.s. treasury secretary jacquelinek lew said that it's time for more sanctions against russia. is there appetite in europe, germany? >> yes.

angela merkel has been leading the way. in some ways there was a switch among german business leaders may be four months ago. up to that point they were worried about sanctions. there was more escalation. it seems angela merkel has the business community behind her. companies like adidas do a lot of business in russia. siemens was hurt by russia exposure. looks like the german business community is behind merkel. >> i want to look at what is happening in brussels with the meeting of the finance ministers. a wide range of responses. the minister from ireland says we might be a little bit more accommodating. wolfgang schaeuble from germany says nobody is forcing greece to take anything. is there a consensus? >> of course everybody is forcing greece to take something. they are going to need another round of payments to pay off their debt.

june is the next deadline. in germany, every day i will hold it up. this is the mass-market tablet. i don't think there's any new to the. -- any nudity. here's a list of all the things german think the election will cost. a lot of sensational stuff. >> jennifer aniston on the back of the newspaper. [laughter] seriously, tell me about the people of berlin do they support their chancellor? >> yes, 68% or 79% is the latest number. a public poll from the public broadcaster. that is the percent opposed to debt restructuring.

you talk to any economist, imf, ecb economists say maybe you do some sort of restructuring and changed the maturities. public opinion is the post, two out of every three voters. i thought wolfgang schaeuble yesterday was a little softer. in some ways, to brussels finance minister was the harshest. saying no restructuring, greece needs to abide by their commitment. >> german support angela merkel. we hear about german fears of inflation. is there not any movement that supports it, that the anti-austerity message resonates with? >> sure. the far left party, the green had a victory party to celebrate greece. we can argue, are they in the 15 % or 20% range easily under

30%. there is an anti-austerity crowd in germany but they are very small no way you can get them above 30%. >> jonathan ferro, from london are we seeing motion in the bond markets based on the statement out of the finance minister'meeting? >> it is drip by drip. finance ministers are willing to make the debt for greece a little bit more bearable. there is no contagion to spanish bonds. with russia, we finish with greece. i spoke to ian bremmer this morning. he says what happens if greece becomes a political football? if putin wanted a dig at the eurozone, he could back greece. those two stories could become one story over the coming months.

that could be explosive. >> when that happens we will go to jon ferro in london and taunts nichols and. coming up, the nhl is going where no professional sports team has gone before with gopro. will it increase broadcast ratings? we will discuss, with tom keene the hockey player. bloomberg "surveillance" under television and streaming. >> "surveillance" storm central. ♪

>> good morning. a cozy morning at our world headquarters. in the southwest end of a storm. not as bad as what we thought but never the less hazardous. the careful driving north and east of new york city up to boston. a single best chart. it is a hockey chart. >> you might have trouble believing this but sometimes we manage tom keene. thrilling in things about hockey whenever possible. gopro announced a deal to use cameras for nhl broadcasts. the first major partnership for gopro with a professional sports league.

does it make sense? why the nhl might be desperate to increase your ship. -- increased viewership. a helmet camera. >> in montreal. >> there we go. here is the problem. look over there on the right at the stanley cup ratings. 6.0 million. a quarter of the usa v. portugal game and a fraction of the 111 million who watched the super bowl. >> the comparison is the nba versus the nhl. the nba with their sports agreement has been successful. the bellwether is the canadian deal, over $5 billion. they have a new momentum in the

last 24 months from what was a difficult moment. >> richard farley, do you see gopro cameras improving your experience? >> it actually looks pretty cool. i think it's going to work. >> i've always criticized tv people. i say bring the cameras down lower. gopro brings you on the ice. you see the speed of the game that you miss on television. >> this is why people balk a t gopro's valuation, gopro is being valued as a media company not a hardware tech company. >> if you look at hockey live, it is better live. more so than any other sport. >> they are going 28 miles per hour. >> the reason tv money goes to sports is because you cannot create it later on. gopro is meant, the technology is around re-creating it later on.

what -- one of the appeals of the nfl is they have a camera handy line of scrimmage. -- one of the appeals of the nfl is they have a camera behind the line of scrimmage. >> when are we getting gopro with cricket? an australian died tragically months ago. >> i watch gopro skiing. >> can i have your life? you and i are here in sweaters. she shows up in proenza schouler. >> do you where those on the new mountains? >> this brings us to our top

story. pedestrians having a snowball fight in times square after a mandatory shutdown. schools, real raise, ridges -- schools, railways, bridges and tunnels are closed. the forecast was two feet of snow in central park. we have less than a foot currently. >> emphasizing three feet in boston, migrating towards two feet. >> where in new york is there 10 inches to a foot? >> i've got to rip up the script. would you take those off? >> richard farley, you look like a gentleman. i looked outside before i got dressed. >> you have salt on your fancy shoes. >> the long island railroad

tweeting a picture of penn station after the travel ban. i got on the train, it was a mad scramble. >> hysteria last night. this is about getting home. >> i stayed in a hotel in manhattan, i live on long island. i came on the last train from clarksville. that photo is how my soul feels every time i am in penn station. >> the robert f kennedy bridge, formerly known as the triborough bridge desolate. the bridge is closed down but looking lovely. >> i still know it as the triborough bridge. it was news to me that it is called the rfk. that is our twitter question of the day. what are you doing on your snow day? please tell me you are drinking wine and watching movies. @bsurveillance. this is "surveillance." ♪

>> our conversation on television and radio worldwide. richard haas from the council on foreign relations. his important essay on the

transition within the royal family of saudi arabia. look for richard and our 7:00 hour. this is bloomberg "surveillance," i'm tom keene. olivia sterns and brendan greeley with me. in state college, pennsylvania sharp weather forecasting. mark what is the distinction as the eastern seaboard wakes up this morning? >> take a look at our satellite picture, the vortex of trouble. our storm we've been talking about four days. it continues to get stronger. winds are on the increase in snow is pouring down in eastern new england. take a look at the radar. see the darker shade of blue? this is where we see the intense snow 2 inches per hour. the center of the storm off of cape cod coming from the southeast, rounds of thunder snow.

reports of thunder and lightning. winds are howling, winds up to hurricane force. >> after the storms, we get cold. are we going to have cold? >> we have waves of cold. nonow snow is winding down in new york city. winds will drag down chilly air. temperatures in the teens, the feel will be worse. colder for the weekend. the next 10 days are going to be memorable for some snow and lots of cold. >> mark, i'm amazed at how weather forecasting works. we did get it wrong in new york city. a heavy band of snow farther up north.

we got less than predicted here. what did we miss? >> take a look back in time. we use the forecast models as tools. look back at climatology and things that have happened. some of the storms in new york city the worst storm ever -- some of the heavier snowfall amounts. right around this time of year i did not see anything over 20 inches. i did not think there was going to be that much. the east, for sure. in cosmetology, you do not get the biggest dumps -- in climatology you do not get the biggest dumps until later in the winter. the forecast models were at odds. one that is not reliable said it would be further to the east. this time the one further to the east won. >> mark mancuso with accuweather. some photos, great effort by our team. no one greater than brendan

greeley. plowing the snow. the main entrance to bloomberg on lexington avenue. >> as the best job at bloomberg. if i cannot be a zamboni driver i will do that. >> shoveling snow on lexington avenue this morning. olivia you've got to believe the busiest store in new york will be the apple store. >> isn't it 24 hours? >> that is the cube there. >> this is looking east from my suite in the plaza hotel. cartier off to the left. >> if that is true, your sweetuite is in the bar. >> here, a woman shopping for louis vuitton today. i believe i've seen that happy -- hat before.

olivia sterns at louis vuitton this morning. >> supply and demand. i thought i would be able to get a discount. >> retail shuts down for a couple days and that will affect retail sales. >> you see consumption. >> another photo here. >> it is interesting to see her priorities. i was alone in a hotel room and i thought i was going to sleep, it is going to be amazing. >> a great photo. some serious wind. coming in this morning. there. there's olivia. this is that park avenue and 59th street. >> at 3:30 in the morning. i bumped into tom keene. we were the only people. >> i have been told i need to instagram more. >> my morning must-read, why were we trudging through the

snow, we could not get an uber. uber decided they would cap search pricing at 2.8%. search pricing will be capped and proceeds will be donated to the american red cross. they could have bumped it up to 10%. uber capped it because they did not want bad press. >> good politicians dealing with new technology. >> that is true. uber has been burned a couple times on surge pricing. this is politics. richard farley i never understood how the sharing of revenue worked. >> drivers make more. >> incentivized to pick me up. >> an article in "the new yorker" magazine two years ago. >> they tell me on my device --

>> i want to open my conversation. should a city shut down given january? it is the weather. >> operate with an abundance of caution. in a city with tens of thousands of essential workers, i'm not including us. we had a correspondent who is driving around bronxville, matt miller. >> matthew miller is driving down the road. >> is this live? >> matt are you storm chasing? >> i'm going down to tribeca. i've got to pick up stephanie ruhle. [laughter] >> when uber goes public are they going to be under pressure? matt, keep your eyes on the road. >> why does stephanie ruhle get a car?

another hour, we speak to richard haas. the litmus paper of putin's system. the ruble out at 68 print last night. stay with us for more bloomberg "surveillance." ♪ . .

>> this is "bloomberg

surveillance." >> boston, massachusetts will receive nearly two feet of snow. but historic blizzard shuts down streets from new york city to maine. the new york stock exchange they say no to the politicians. markets and the exchange will be open to trade today, and again russia -- docs decline. the ruble weekends, standard and poor delivers mr. putin a junk rating. good morning, everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. it is tuesday, genuine 27. i am tom keene. joining me olivia sterns and brendan greeley. let's get right to the top headlines, olivia sterns. >> bon mot genesis, snowmaged don, so far not so historic after all. the national weather service has scaled back the blizzard upstate new york is supposed to be at two feet of snow, travel

at a standstill throughout the region. airlines have canceled 7000 drivers off the road, for millions of children it is a snow day. and the european union is moving closer to imposing more sanctions on russia. there has been an escalation of fighting in ukraine between russian-backed rebels and ukrainian forces. latvia's president says there are further facing visa bans because of russia's control. meanwhile, putin says ukraine is responsible for the renewed violence. >> european finance managers appear to be willing to work with greece, that is if the new prime minister of greece drops the debt coming down, the german finance minister says that does not make sense. and the country likely will not have to make any more economic overhauls. there is word today of another

intelligence gathering program. according to the "wall street journal," the wall justice department has a program to track data and wrote time hundreds of millions of records about motors, the primary goal is to hunt drug traffickers, but it can be as for other crimes. >> robert kraft busy. he says his team needs an apology. that may be. kraft spoke at a super bowl press conference in arizona and says if the nfl finds nothing was done in deflate gate the league should apologize was up at the same time, a new development indicates -- vox boards says the nfl is focusing its investigation on a patriots locker room attendant. >> i talked about bombo genesis when a storm false 24 millibars and 20 four minutes, that is the

only weather phenomenon that can deflate a football. [laughter] >> this poor guy in the locker room being thrown under the bus. >> there it is. we welcome all of your bloomberg television and radio and of course particularly on radio bloomberg 1200 boston and bloomberg new york. quite serious as we move up to boston. there is the data, the take worsens, euro-dollar advances some strength finally a bit. you are the headline -- oil does not get a bit. i would watch oil among everything else we have got today as well. let's look at the storm and let's get some hands-on view of it. it is "surveillance" storm central. new york is shut down. our matt miller migrating to pick up bloomberg television celebrity stephanie ruhle because she has no cab and cannot walk to work from the tribeca. matt, seriously, what do you observe on the roads this morning?

>> honestly, the roads are very clear. [laughter] i am considering switching down into two wheel drive from four will drive from four-wheel-drive because you really do not need it, but i have not seen almost any other cars on the streets. i saw an ambulance, a cop, a snow plow -- otherwise we are pretty much the only car on the west side highway right now. my normal commute is on the west side highway. i would be in bumper-to-bumper traffic listening to you, tom, on "bloomberg surveillance" but right now it is a pretty easy trip in down to stephanie's pad. >> is something the word of the day is "underwhelming." >> yeah i'm a little bit -- on the when hand item bombed out because i was hoping to see the storm of the century. when you live through something like this, i live through the visit of 19 -- the blizzard of 1978, i was only five years old but i like to be able to say that i did and will hopefully tell my grandkids about it. i was hoping this would be one

of those moments. on the other hand, obviously when you get a serious storm there are a lot of emergencies arise from that, and could result a in major fidelity. i do not want that, nobody wants that, so i guess this is a blessing, right? because everything can go on life as usual, and i guess they were operating -- what did you guys been seeing all morning? out of an abundance of caution. >> breaking news from long island -- we have let the dog out, he is safe in the snow. >> oh, good. i'm glad we cleared that up. how well has the city had on the best -- how well has the city handled this? because it is not snow as much or because the clouds cleared the way? >> let me point out the snow has been cleared fully in bronxville, pretty clear in the rest of westchester. they revise the blizzard warning down to winter storm warning but as soon as you head into new york city, all of a sudden the roads are more difficult to drive, and i am sure getting to

manhattan even worse, so for some reason, it is more difficult for the city to operate than it is for, say, the county of westchester. i do not know why. >> matt miller, thank you, safe driving, get miss ruhle in for her show. matt miller from the "surveillance" storm center. i put on twitter this morning about children not fearing storms. you have got the little ones, i mean, the hysteria we are all going through on storms and the politicians -- it has still got to be part of our lives, and it has got to be fun for kids. >> i think that is true. snow day as an adult does not mean what used to. i am kind of sad. i called yesterday from the hotel where i being and my kids were home playing wii and drinking hot chocolate and i would much rather take them out into the snow right now. >> let's do a morning must-read and bring in a special

guest. from the "atlantic," storms are now the yardstick by which voters evaluate their mayors judging their skill at operating the complicated machinery of municipal administration. when the flakes start falling, the test against, and the test begins six blocks away as they shoveled out a three-foot for one leslie picker that has arrived on our set this morning for the getting and six blocks from where you were was not a big deal, >> not that big a deal much -- not that big a deal. >> not that big a deal, much bigger than when i was a producer much better climate this morning, barely any snow falling. >> storms that have into new york get a distribution it -- a disproportionate focus because we are all based in new york. meanwhile, there is a dump happening. >> 1/3 of all air traffic does come through the northeast corridor. the airport cancellations come over thou -- the airport

cancellations, over 7000 cancellations. >> this is richard sherman over radio saying governor chris christie, this is office of twitter, governor christie will remove the travel ban is somewhat a.m., some of you that is listed right now -- travel ban at 7:00 a.m., so maybe that is listed right now. >> it makes sense that an over abundance of caution is merited. >> this is a live picture of columbus circle for those of you on bloomberg radio and i am surprised to see a have not been cleared because the cars have been off the road, it is not snowing right now. it basically has not really been snowing for a couple of hours. it is hard to figure out why such a central artery of the city would not be plowed already, but who knows what they are dealing with. >> but you are already doing exactly with the morning must-read site, which is we are

already evaluating the mayor based on his handling of the snow. >> leslie, you are over by the 57 east side whole foods store in columbus circle, what do they do with their employees? that store needs to be open as i can get my fancy pants, rich guy meal. those people have to get into work. >> actually did research at the nearby whole foods at 57th street, shelves were indeed. i spoke with one of the people who was working the cash register and said how are you getting home tonight, and she said i have no idea. i said on the subways closed and she said yep, i am going to try my best once i get outside. >> this is so important if you work for a company that has the money to pay for a hotel room, then the snow is not that disruptive, but if not, and if not we are talking about most of the city, it is a completely different experience. >> if you are making an hourly wage and do not show to work even for a natural disaster, you

will not be able to pay your cell phone bill. >> it is a social debate and again we will have coverage on bloomberg television and bloomberg rio, particularly our rob carol with important coverage from new haven on north to boston this morning. we've got an incredibly important twitter question this morning. . >> yes, our twitter question of the day, what are you doing on your snow day? did you make it work on, are you trading, are you making money, are you sledding with your kids? we want to know. tweet us @bsurveillance. on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. good morning. >> and futures a little bit light, -11, dow futures negative 113. be safe out there. good morning. ♪

>> good morning, everyone. "bloomberg surveillance" from new york city, this is through central park this morning, 6.3 inches at 1:00 a.m. we need to say there is still a serious import to the storm. everything is a shutdown although governor christie beginning to open up a bit of southern new jersey. up north, it is still very serious as it is a winter wonderland this morning in our central park. morning must-read this morning, the moment, david goldman, four years at bank of america, writing out of asia, and he has got an important publication

this morning -- we are far from the threshold of financial crisis, but still close enough to for the prospect of going over the threshold to move markets. that is good reason to reject complacency. this is a detailed note from a seasoned pro looking at the tea leaves. what is the tea leaf right now you are trying to observe? >> i am amazed by how little of a long-term effect islands in the ukraine has on a natural markets -- on financial markets. we see movement in the ruble, but we do not have people panicking about a global meltdown. we can look back 100 years to world war i and get all these quotes from people who had absolutely no idea that it was going to start, but i'm shocked by how little movement there is. >> i set you up for that an effect of the conversation is not about markets but about right-wing and left-wing polarity within europe. that is the theme of this january. >> i think that is true and it

is all about how panicked you are. every once in a while come a while, the most panicked people are right. >> that certainly might take away from the greek elections. i wonder if the landslide victory of the extreme left coalition in greece is going to light a match under all of the anti-s 30 -- anti-austerity parties. who do they team up with? the far right, nothing in common with them other than imposing austerity. >> i thought rally in germany with a sign in english that reads "it starts in greece, and it comes here." >> you know much more about this than i do -- is the fascist party a far right party or are they often their own universe? >> in germany in particular, it is very complicated because it is illegal to be a nazi. you just can't, so the right-leaning parties talking code -- tal but what we are seeing is ak in code, code that

is more widely accepted, which is an anti-eu sentiment. >> before the massacre at the "charlie hebdo " offices, the top party. >> futures -11, coming up robert schiller will join that he on "in the loop -- betty on "in the loop" this morning for some stay with us. from new york city, "bloomberg surveillance." good morning. ♪

>> good morning, everyone. "bloomberg surveillance." a bit of a "surveillance" correction microsoft down 7%. really quite bad. >> it looks like the fx hit. >> procter & gamble with that as well. stay tuned to bloomberg television and radio for that. here are top headlines with

brendan greeley. >> earnings from siemens -- the turnaround plan is facing a threat from the company's health care and energy generation division. dragging down overall first-quarter profits more than 4% to $2 billion. 50 months ago, those businesses helped offset decline elsewhere in the company. stocks dropped as much as 3.7% for said is bringing its high-speed fiber-optic internet to four metro areas in the next coming days according to "wall street journal." atlanta, charlotte, north carolina, raleigh-durham, and nashville, tennessee. internet connections are 10 times faster than average. in other news, i will be forcing "bloomberg surveillance" to talk about it all week. private plane company owned by warren buffett, net jet does not have to pay more than $356 million in penalties and interest that the irs claimed was past due. the dispute was tied to the disagreement over what part of

netjet's businesses were subject to federal excise tax. those are your top headlines. >> very good. a major shout out to maggie day and loren chapman. we have put out the actual arabic video and audio of my conversation with the president of the arab republic of egypt. this was requested by many in the middle east, and president el-sisi speaking at length. i will try to get that out on social media as well. that brings us to a conversation with ambassador richard haass of course president of the council on foreign relations. richard haass, egypt needs saudi arabia. explain to us the relationship of the new government of saudi arabia with their adjacent nations. >> it is quite close, tom. they both share an antipathy

that is hard to exaggerate toward groups like the muslim brotherhood, what they would see as radical islamic movements. indeed one of the previous reasons the previous leadership got upset with president obama was what they saw as his betrayal of president ob mubarak. you have the relationship between the wealthiest country in the arab world, saudi arabia and the most populous country in arab world, egypt. >> you had your wonderful essay on saudi arabia, how do you balance the brutality of a given regime with their more gentle more moderate efforts? >> in some ways that is an age-old dilemma of american foreign-policy. you have got to balance strategic stakes in saudi arabia. obviously the energy stake opposition to groups like isis uin syria and iraq, opposition to terrorism more

broadly, and a lot of americans find repellent, it is their own reproach approach to human rights, what we call liberalism, the way they treat women and so forth. this is a recurring tension, but when i think you will see for the foreseeable future is a tilt in the direction towards realism, where we need to partner with the saudis given simply the array of challenges that we and they face in the region. >> ambassador haass is that realism also shared by the saudis? i am struck by the contrast of president obama traveling from india, the world's largest democracy, we championed their partner should because they are socially tolerant, and then going to saudi arabia essentially a safe haven for a lot of extremist ideology. is there a sense among the saudis that the graphs are beginning to show any relationship with the united states? >> for sure. i already mentioned the crocs

over egypt. the saudis do not trust the united states in nuclear negotiations. with iran, they think united states is naïve about iran. they were extorting a really unhappy. it is hard to -- they were extraordinarily unhappy, it is hard to exaggerate, with what unites states did with syria the lack of arm support for the opposition. when bashar al-assad across the so-called redlines and used chemical some of united states essentially said "never mind." there is a long list of saudi unhappiness with the united states. there is a lot of american unhappiness with saudi arabia, not just over domestic policies but also their years, one way or another, supporting radical groups throughout this part of the world, and quite frankly beyond. this is not an alliance. at at best it is an uneasy, on-again, off-again partnership. >> you wrote about the seamless transition from king to king is

a sense of panic and saudi arabia at their strategic vantage point. and look worse in their neighborhood right now. how is that affecting the internal politics within the kingdom? >> you're right, there is what looks to be a smooth transition they got a new king, a new crown prince, a new deputy crown prince, and the deputy crown prince is in some ways the most significant, even of the is third in line, because he is the first person in the next generation to get a senior role but i would not conclude from that that things are calm or settled for all time. there are families and factions and all the rest, but all of this takes place not only against this array of external challenges many of which we have already mentioned, also including yemen, also including bahrain, but also saudi arabia. it is a cash crop economy, and

that economy is called oil, and have got to know try to manage domestic. >> very good. richard haass, thank you so much, with the council on foreign relations. >> what are you doing today on your snowden? tweet us @bsurveillance. ♪

>> good morning, everyone. "bloomberg surveillance" from our world headquarters in a storm-tossed manhattan. the blizzard warning has been canceled, a press conference by the governor, the state of new york, mr. cuomo at 8:00 a.m. it's morning where he will no doubt have an update on more serious snow to the north and east of new york city. serious public duty for all of us at bloomberg news is matthew miller. he is on the track to pick up one stephanie ruhle chauffeured and, unlike olivia sterns, who walked 15 blocks through the snow this morning. matt please give us your observations of the streets of new york. >> well, the streets of new

york, as i expect it are not clean, so they are still covered in snow, unlike everywhere outside of new york city but just pulling up on washington, i have got a 1977 song on the stereo, and i am seeing stephanie ruhle here. i am picking her up for stuff she has got a go pro on her head and some snow goggles on. >> the problem is there are no cars. >> you know why? because there is no surge pricing. if there was surge pricing people would be out here driving ubers. >> the band has just been lifted so as a moment ago, you no longer, matt, face a $300 fine, so assume more cars kobe out on the roads command is stephanie wait half an hour, she should be able to get anywhere. >> ah there was a ban, so they cannot even drive that they wanted. >> the roads are just not that bad.

>> are you going to surge price your passenger right now? >> yeah, i'm going to charge stephanie an arm and a leg for this right. by the way, stephanie ruhle, a seasoned television broadcaster, totally shocked when she woke up this morning and cannot get a car to work. that is not being prepared really basically. [laughter] i am going to bring her up. >> the streets are not bad, my cold booty is. let me in. >> get in the back. i will show for you. >> i want to point out, brendan greeley, stephanie ruhle war that go pro at a piano bar in davos. >> a "surveillance" breaksclusive, we just use the word "booty." the decisions you make and how they play out decades on he writes "no one was thinking of a 21st century snowstorms when they were debating new york city

consolidation in the 1890's. political decisions have the effects in the most monday and, yet on for seen ways." -- the most mondaymundane, yet unfor seen ways." >> really showing the import of that 1888 storm, the first modern storm where we went from the romance, you know that came out of the 18th century and 17th century into my modernity. >> columbus avenue? >> leslie, you are going to cover yahoo! and we will talk about that later but this really speaks to the migration of a nation and warmer clients. my parents just migrated to arizona from kansas. when you look at this type of weather condition, you see what you can get any snow, i mean, it is kind of a no-brainer.

>> this was jonathan bernstein's point this morning the new deal and the housing policies had people moving out of the city than the northeast, so we would have a lot more moving living here, -- we would have a lot more people living here if not for the policies. >> the ski industry has struggled a little bit. it is not the boom it was 10, 20 years ago. >> go pro is selling. every kid on the mountain and colorado over the break had a go pro on. it was very busy, and there was a sense if you look at the parking lock, on the runway come on the tarmac, there's a sense that the money is back. the first time since 2007, you can really say the money is back. >> your ski report this morning with one olivia sterns. let's do a data check, midway, futures -13, and a interior it, dow futures -154, the euro $1.1

2. a lot of eu meetings going on the nymex crude $45.11 a barrel as well. brent crude, that is fragile. i need to watch oil very carefully this morning. good morning, everyone. "bloomberg surveillance." i am tom. with the olivia sterns and brendan greeley. >> mario draghi is firing up in the euro is plunging. we have also seen switzerland, denmark, india, canada, turkey all caps their rates will stop if you're in the fx market it is looking like war. >> the prevailing view is one of the ways to stimulate economic growth is to have a low currency to exports against and hopefully create tourism and imports with, and, you know, it makes sense. >> for more on the so-called currency wars come i want to

bring a jonathan faro, an italian that lives in london. he got his first taste of snow in davos. >> i have to try to take you seriously while that is on your head, olivia. get that off, and we will start talking about fx. the transition mechanism for monetary policy seems to be to push the currency down. that means high dollar yen weaker euro dollar. the federal reserve is willing to tolerate that, but this morning and yesterday, key events, procter & gamble -- guess what they combined about this morning? stronger dollar. microsoft earnings -- complained about a stronger dollar. federal reserve meeting over the next few days. will they continue to tolerate a stronger dollar because that really is the only pressure for what has going on in the fx market right now. >> it used to be routed to say that devaluing your currency was the gold. now it seems politicians are happy to admit it. matteo renzi told people at davos that parity with the

dollar is his dream. it seems like a big change of tune. >> the thing is the guys that are actually pushing it down, the guys who control monetary policy, it is the boot for them. they do not want to mention it. they always say the fx them exchange rate is not a target for policy, although it does impact price stability, so do the math. if you want a little would have prize stability or inflation the cheap way to do that is to push her currency down. the problem is the risk -- it can create the wrong kind of inflation. you make goods more incentive for your consumers. is that good? no. >> we haven't talked about currency deflation as all-time as if it is just about increasing ability to export, but there is a very important internal aspect which is that if you have got a little bit of inflation, which europe does not have right now, it makes it easier to give workers wage cuts. this adjustment that we are talking about where wages me to keep going down in greece -- that cannot happen without this inflation, right? >> that is a very good point.

obviously the price stability mandate from the ecb has a big impact on the wages in people's pockets. you do not get much inflation is across workers. they do not get the pay they probably deserve, and that is always an excuse. until we focus on the receiving end of that at some point. >> hans nichols with us as well from berlin. on the currency wars, hans, it is about the deutsche mark, how attached to a weaker euro are the german people? they are addicted to it, aren't they? >> well, the german people are not necessarily addicted to a weaker euro per say, tom, and this is what we keep getting from central bankers. they are not looking at the exchange rate as a target. they see the weaker euro as something that is a byproduct of what is happening out there in terms of inflation, buying assets-backed securities. it is rare to get a german on the record saying boy, don't you sure like this weak euro?

it helps your exports. what they want to talk about is price stability for stop it is true at the corner of the kebab shop, where i tend to go especially on cold days. >> hans nichols and jon ferro thank you so much. olivia sterns breaking into the -- olivia sterns digging into breaking news was up caterpillar is a global transnational for the united states of america really has a rather significant miss. we will give you details on this coming up in our earnings as with caterpillar. and of course microsoft down 7%. >> just briefly, it looks like world economic growth improving modestly, obviously, they will feel a big hit from commodity dropping off. >> futures -10, dow futures -153. olivia sterns will break this apart in her earnings adhere. >> out-swinger question of the day --what are you doing on your snow day? tweet us @bsurveillance.

this is "bloomberg surveillance ," on bloomberg television streaming on your tablet, your phone, and bloomberg.com. good morning. ♪

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

i am olivia sterns here at tom keene and brendan greeley. >> right now futures -13, dow futures -165. >> we are feeling the weight from caterpillar because we look at caterpillar as a bellwether for the global economy, and caterpillar earnings coming in well short of estimates. coming in $1.35 versus estimates of $1.55. u.s. can guess the reason -- oil. caterpillar say make the global growth of only 2.7% this year. they blame the large front of the decline on a sales and revenue outlook again on oil. a little but of cost from recovering -- from restructuring. we know given the dramatic collapse in the price of oil, it is really changed a lot of big oil companies' plans. >> a lot of it is the new mediocrity coming to roost. >> where they see their growth long-term is in emerging markets.

it is not an accident. we are talking by the president right now was just in india. one of the key relationships right now with india is a congressman from illinois peoria aaron aaron schock and he wants to make sure that company is there so caterpillar can export to india. >> construction equipment sales in china, so your.mac caterpillar's dependent on emerging markets for growth, it is a worrisome time from the will's largest consumer. >> this goes to the linkage on "surveillance" of economics into finance. we are seeing this away from the u.s.-center banks to caterpillar, now procter & gamble with an fx adjustment off of a strong dollar, and everything gets below single digits. >> again, procter & gamble had attempted to shift away from talking justice consumer product

, and was trying to sell more premium products and emerging markets. stronger dollar makes that really difficult. >> we are going to talk about yahoo! and own a block. leslie picker with us, and this goes back to use of cash, yahoo! being one of the most absurd uses of cash that there is. >> $40 billion of cash is what we are talking about. that is what is up for grabs. they also have a stake in yahoo! japan, which is cash as well. >> my message here from leslie's observation on yahoo! -- it is not just about earnings, it is not as apple, apple, apple microsoft -- all of these other companies have cash. >> the way we can tie together both procter & gamble -- sorry olivia? >> 12% fx hit for procter & gamble, but the number jumping out at me right now is caterpillar lowering the forecast, probably white shares are down 6% in the premarket right now. they've adjusted the 2015 forecast to $4.75 a share from $966.50. things are turning very quickly.

>> what ties these two stories together is companies were not prepared for america to be the engine of growth. there were so many strategies and it turns out the growth is happening here. >> it is true. we will have much more on the earnings coming out and also on this jorgen vig knudstorp -- also on this bombogenesis, the snowpocalpse. this is bloombergtv. ♪

>> good morning, everyone. "bloomberg surveillance" from new york. transnational companies, top earnings caterpillar, microsoft yesterday leading the way futures -17, dow futures down well in excess of 200 points and critically, oil bouncing off a $44 handle $45.05 right now on west texas intermediate, so there is a weight to the markets as a boston troubles out this morning. let's get to top headlines right now. here is brendan. >> microsoft ceo satya nadella hit a bump in u.s. markets, a stronger u.s. dollar curbed

sales of business software licenses. commercial software licensing fell in the latest quarter, 200 million dollars less than analysts expected, a profit of $.77 a share. revenues rose 8% to $26.5 billion. the world's biggest drugmaker says revenues will grow this year. novartis' fourth-quarter income rose. analysts expected $14.1 spring9 training is weeks. away , but and slugger alex rodriguez making news. the new york yankees think a-rod is no longer entitled to receive up to $30 million in agreed-upon bonuses because he sat out the 2014 season due to a drug expansion. that money is tied to milestone home runs. he will get a base salary, still $21 million this season. do not cry for him. those are your top headlines.

yahoo! reports earnings today after the bell. there is only one thing that matters about yahoo! -- it is not what does as a company, it is what it plans to do with it or you billion dollars -- with its $40 billion stake in alibaba. leslie picker has been covering this story for us, and cory johnson is here. corey, is the best way to look at marissa mayer's agenda the best thing she does is sell this and sell it well? >>. that-- >> yes and no. after that, the future of the business of course is gearing up for that, all eyes are going to be on what the company has been doing, the performance of big acquisitions and things like tumblr the changes in the marketing technology will become the focus after ali baba, but yes, today is the day that the alibaba sale or spin off or

whatever it is going to become of the company will tell us what is going to happen. likely some sort of spinoff that will help them save the tax bill from this fantastic investment that they made an alibaba many many ceo's ago. but the tax bill could be hughes e and they're trying to avoid a desperately. >> i keep reading these euphemisms, tax efficiencies tax savings, but what we are really talking about his tax avoidance. >> tax dodging, exactly. that is where he gets a little bit complicated because one of the options would give marissa mayer's a much bigger company to run, would require the involvement of an alibaba or a softbank which would give cash and other operating business which gets politically tricky when you think about a chinese company or japanese company help a u.s. company dodge taxes. >> cory, where you are, i am cynical about yahoo! as a company, but i do not live out

there. do people there take us seriously as a technology company, or is it just an investment in alibaba? >> the decision between media and technology is increasingly blurred full set fundamentally it is a media company that has a lot of eyeballs and advertisers spending a lot of money to reach those people. still, the challenge for them or us a myra's to look at things that will be around in the future -- for marissa mayer to look at things that will be run in the future. people using yahoo! mail, over 100 million people use yahoo! mail on a regular basis, and so they are looking at things in the future. they spent $1 billion to acquire tumblr which i think is still not seen as a brilliant investment, but the numbers and tumblr are getting better faster. if you look at google friends, you will find that tumblr is more popular than pinterest. the challenge for yahoo! and

former is a meyer, has been to build up these other businesses for the day today when ali baba receipts into the history of yahoo! they may not spend it all off of they want of a displayed in the growth in china. >> that brings me nicely to my question for leslie, which is what is murthaarisa mayer's future? >> what benefits shareholders does not benefit marissa mayer because they are looking at what the activist investor star board has advocated, spinning off become a, which would require yahoo! court to be a couple billion dollar market cap company, much smaller than the $40 billion market cap it is trading at today. she wants rupees of shareholders was up she will be looking at running a much smaller company has much less power in the tech world and yesterday by market cap standards. >> leslie, sticking with us, and thank you, cory johnson, our

"bloomberg west" editor at large up at 4:00 in the morning in san francisco, we appreciate that. it is time for the agenda where we look at the stories of shaping the day and also for my agenda tom, is russia and what is happening to the russian ruble. it is trading at a mere six to seven dollars -- it is trading at a mere $67. my big take away here, i send everybody to bloomberg.com to check out our interview with maurice cramer of the s&p, who i am sure is looking at better numbers than we are. he says of the warchest we all think putin is hiding behind is actually puny. >> i think they are wildly set up here for shock. i do not know what it is, but it just gets more and more fragile. >> exhaustion as a shock is something we should have all seen coming. my agenda is a brussels. there are a lot of meetings

happening that cannot be anything -- that is not the case right now. european finance ministers are in brussels, and i have trouble not laughing when i read the headline -- "they are prepared to negotiate with greece so long as greece is not want to negotiate it that." that is what greece wants. it is silly to hear them ignore it. >> very good. finally on the snow this morning, as you look at russia and brussels, it was quite serious last night, a real feel of a production of a real storm. we got less than that come at some attention to boston massachusetts, and southwest of boston, massachusetts this morning where it may be heavier, but all in all, olivia, i would say such a letdown, like your hat. > we were preparing for snowpocalypse a bombogenesis is the term, when the pressure falls really quickly. the forecast was two feet of snow -- it snowed less. >> i will tell you right now,

outward question was what we are doing today in the snow day -- i did not get it. i just got a text message -- i do not have twitter, but i would say i am taking care of brendan's children, that is from one elizabeth greeley, who is home today. thank you, sweetheart! >> and it is time to enter our request of the day -- what are you doing on your snow day? are you going to make it to work? first -- working. next workplace, or work from home remotely. >> technology changes this debate. >> whether or not that is a good thing or bad thing we will not get into. the second answer -- the storm blew away tom keene's bowtied. >> it did! >> i did not even know, i came in wearing a sweater and was told i could keep it on. it was amazing. i got a bloomberg message, not a tweet, from philippe dillinger at d&d brokers, he writes -- i am in dubai, after a swim on the

beach, heading to the office to see what is trading. >> he is not the only one with that idea. our final answer is -- the only thing to do is a wood-burning fire and cognac turner classics on the plasma, and bloomberg on the tablet. that is a rich man's response. >> was that michael bloomberg? >> no, that was not michael bloomberg. there we are with our coverage today. stay tuned to bloomberg television throughout the day and very importantly, this afternoon, the apple earnings really a genuinely, always fascinating to see how much cash they develop out of that machine. >> also we want to see how big the fx hit was. that has been the story wrong procter & gamble, we saw it in microsoft yesterday, but keep an i on caterpillar today. shares are changing as they revive lower their estimates it vividly for the year ahead, and the reason looks like oil, tom. >> very good. thank you to our team for

helping us put this together this morning. stay tuned to bloomberg television for further coverage worldwide and on bloomberg radio. i will be joining michael. good morning everyone. on bloomberg television, streaming on your tablet, your phone, and bloomberg.com.

>> good morning. that is the scene this morning as we awoke in new york city. the snow is not as bad as we had expected.

it still, we had a foot come down on new york city. this is "in the loop." we are going to get a snapshot of how the housing industry is doing. the housing index is going to be out in about an hour. we will talk to the founder of that index, robert shiller. apple is out after the close. so is yahoo!. what did investors think about microsoft earnings? that is their statement. they are walking out on the stock. it is down 8%. this is a look at the other top stories this morning. it looks like that storm won't make it into the history books after all. the weather service is downgrading the forecast. new york may get no more than a foot of