declared illuminated 15 years ago. forget the super bowl, go to the ballet. arts and culture is big across america. good morning, this is "bloomberg surveillance." it is tuesday, the day after groundhog day, i am tom keene with olivia sterns and brendan greeley. let's get to our top headlines. >> greece continues retreat from its call for the euro area to write down debt. yanis varoufakis met in london last that with about 100 financiers including u.k. chancellor george osborne. reportedly proposed to exchange existing for new bond link to the country's growth. the man who led greece's debt negotiation in 2012 says the country does need a monist -- modest amount of using. curious speaking to his earlier.

>> i am amused by those who point to the small size of the greek economy to the relatively small size of the banking system and suggest it means it has no or very little systematic risk. i think we should have learned over the last two years that none of us can fully and easily anticipate where systemic risk may come from. >> european stocks advanced on news of the greek retreat. germany's 10 year yields are below those of japan for the very first time. australia, the central bank unexpectedly cut its benchmark interest rate to new record low sings local currency remains overvalued. the world bank's joins a dozen of its mobile parts and easing this year as commodity prices tumbled. 13 banks in its february 3. -- and it is for your third. is february 3. >> according to chris

christie, amid an measles outbreak that sickened more than one of the people, the governors on a three-day trip to the u.k. quickly did an about-face in his office issued a statement sing he believes "with the disease like measles, there's no question kids should be accented." the largest audience in the history of u.s. television super bowl xlix through 114.4 million viewers, including one tom keene. he is katy perry's biggest fan. >> and missy elliott. >> and lenny kravitz. classic last second interception for when -- win for the patriots 28 have in 24. >> google, one of its biggest

investors, search giant, preparing to offer its own ride hailing service most likely connection with driverless car project. recording to a person close to uber's work, google has informed uber of the possibility and executives have seen screenshots of what appears to be a google ridesharing app. >> this is an amazing scoop from brad stone. this is a big deal, particularly given the capitalization, the money that has been flowing into uber. >> the money flowing out of my account. uber is a money magnet. >> but uber said you have your a thomas car service, we have ours, too. they will start its own center of excellence. >> google ventures has made enough off uber to funding can hire -- the entire -- >> we look at uber do they have

a first mover advantage? >> we don't know. we've been talking about this for a year and nobody really knows. is uber just a really good idea that anybody else can build on? >> i have to go to a data check. let's bring in our guest. we will rip up the script. this is greece-related, futures up 4. there is the euro stronger. nymex crude 51.03. oil crisis over. we line up the two oils. euro-yen is churning, which shows the currency -- i want to get to this so we can jump over to uber. here's the australian dollar back 40 years, stronger u.s. dollar, the commodity boom. we rollover in the central bank

janet yellen of australia says we need a weaker currency. >> we talk about iron been a surely as main export. i've been coveting these boots for 10 years. can't afford them. can't afford them. maybe soon. >> among the g-7 nations, their benchmark is 2.20 5%. every other developed nation is -- >> rate distortions now is all there is to it. >> doug does not approve of my index. he is skeptical. >> let's get started on "bloomberg surveillance." jobs day on friday. it is a silly season. two or three people actually read the executive summary, let alone the first 20 pages. the backdrop this year is the great distortion. in this hour, we will speak to the former director of cbo and the budget. lisa from morgan stanley will

speak to us on the currency wars. first, we have to get the backdrop in a want to rip up the script. uber and google. >> am not a tech boy, but i think the driverless pieces everything. there is the app and then the quality of your experience. it is quality control is a management issue and the drivers that is key issue for uber. you get rid of that, anyone can do it. >> this idea of technological progress. are you optimistic america can have the technological progress that will advance as over five years, 10 years, 50 years? >> absolutely. i see no reason why if we take your business, this should be the 21st century of american century as well. we control our destiny of technological advances have always been part of that. >> how bullish are you of driverless cars. luby no drivers? >> i am not that bullish.

that is what people are trying to get into. google wants the driverless car. otherwise, the first mover advantage is real because uber has shown they can get the drivers and by a large, quality experience. >> my skepticism is not the technology. but of all people, doug holtz-eakin you know how slowly the government can move. you think regulators will greece regular's -- agree to driverless cars anytime in the next decade? >> no. that is not a technology issue that is a government issue. >> i want to bring up these numbers. let an argument the other day about why it is off the cliff. this is five years out and then five years from there. this is what the market says inflation is going to do. the answer is, doug holtz-eakin something has changed. is it structural or oil is six

and of that as well? >> i think we'll is different phenomenally. we see in north american production, something break the ability of opec to maintain prices. we have a temporary low because of low growth performance. we're never going back to the situation where we get you a political risk like we have now and the means will cost $140 a barrel. the second thing that is really troubling and is here and we have to deal with that poor growth prospects. i think the most depressing thing, for example, in the budget -- >> 3% growth that we have been experiencing. >> we do everything the president wants. you put into the growth forecast everything the president wants come off his magic formula infrastructure, strong middle class -- two point 3%. what that means is, this is the boom and these are the good times, and that is what that is telling you. >> lisa shalett everyone has his or her own favorite

inflation number. 2% is sort of arbitrary. do you have an ideal when that we should be shooting for? >> i don't think your is an ideal one. the fed's 2% target is within we have historically seen. when i look at the five-year forward as tom pointed out, i think what not enough folks are paying attention to is core. we know what is going on with oil. everyone does it want to look through it right now -- doesn't want to look through it i know because deflation is the work, as they say. but the core measures of inflation have been stable. that is even true in the eu, where it has been somewhere around 0.7% pretty consistently and in the united states, about 1.5%. core pretty stable for about 12 months. >> and there is this idea of negative interest rates. the great distortion as we go to the budget and the currency wars that tea leave for crazy

negative -- >> that brings me to the question, do you feel the bull run in bonds, is that american-made? is it about negative yields abroad? >> absolutely about negative yields abroad at this point. we know what the relationship should be between nominal gdp growth and our interest rates. that has fun and down over the last 15 months -- fundamentally broken down over the last 15 months. that is one of the things that create instability in that bond market. we know about the theories of supply and demand on a global basis right now. i don't think the regulators have done anyone any favors by some of the capital requirements that they have put in place. it is actually pushing the demand for bonds global rates down even further. >> we get an amen from the pews on doug holtz-eakin on raising capital rates. >> it has been subtle.

people have no idea what combination the new standard that the dot-frank rose, this has really just hammered the financials. >> so much lower than what have been asked for. 3%, right? >> the real uncertainty about how it is going to play out -- we are years into this and still trying to figure out where people are going to be. in the u.s., we now have this process that is totally opaque some of our largest most important financial institutions have no idea what regulatory structure -- >> it is like ice cold in new york city for those of you worldwide. we have to get to james gorman. his morgan stanley a bank? >> legally, guest. we are absolutely a big. >> did you like that? you threw a punch and she just bent. >> very good. lisa shalett with us from morgan

stanley. currency wars are front and center. >> much more later in the hour. we're going to be talking about radioshack. the end may be nigh for your local radioshack store. we will tell you what to be the final nil in the coffin for the electronics retailer. this is "bloomberg surveillance." ♪

>> good morning, "bloomberg surveillance." "in the loop" just a blitz on any number of topics including the death of a usterity. >> news corp. will not be prosecuted in the u.s. over the phone hacking scandal.

the justice department had been investigating if the hacking took place in the u.s. and also looked into whether alleged payments to u.k. public officials broke anticorruption laws. the department says it is not pursuing charges and closing its investigation. alibaba looks to boost its overseas expansion. they're offering loans through lending clubs. u.s. businesses will be able to apply for short-term credit lines of as much as $300,000 to buy goods from chinese suppliers on ali baba.com. they want to reach some 2 billion individual customers and 10 million small businesses outside china. founder jack ma says the cop does result its promise -- problems with commerce. the regulators accused ali baba of all comes the bad behavior like selling, for goods and taking bribes. the billionaire said the matter was handled "at the first stage" and some officials in beijing did not share the as yet sees criticisms.

-- as cic of austria's criticisms. >> let's rewind to the super bowl last year when one had caught many of us by surprise. >> radioshack. ok. what? the 1980's called, they want their story back. >> radioshack fessing up to being behind the times. they called on all the biggest stars of the decade. >> marilou retton. >> look, this looked like radioshack's reckoning. they admitted to been stuck in the past and this ad was abuzz to be a shot in the arm for the struggling electronics detailed chain. fast for today, radioshack has gone belly up. there bankrupt and preparing to sell half their stores to sprint, or so we hear from people familiar. and to shutter the rest of them. josh, great story, great read.

radioshack has gone the way of many big-box retailers before them. a question is, is radioshack sort of a victim of the times or do they make mistakes? >> pretty much a victim of not changing with the times. it was going to beat up for them, but stuff is tough from businesses as things change, especially in retail and electronics. they did not act quickly enough. we have been seeing this coming for maybe 20 years. >> you did such a good job in the article of talking about the history of british act. -- radioshack. people who go into radioshack -- i did this when i was a kid, and built a robot that did not work. i tried into did at radioshack. your point was, they missed that. they lost what made them special. >> this is the cruel irony of the story. her long time, radioshack was a relevant the gaza road went to

the spybot televisions. now we are in this renaissance and people want to build things again. radioshack seemed to be well-positioned for this. it's been the past 10 years trying to be a cell phone store and lost its soul, essentially. >> lisa shalett is not a her head. you build robots? >> i don't, but i've a 16-year-old son who aspires to build computers. just this week and he said, why don't we go to radioshack? >> you are getting. >> their testimonials where people don't go into the store for hours. i wonder where he is going to go. >> how does this dog stay alive, in your research? >> it was the cell phone. around early to mid 1990's, radioshack realized the cell phone was going to be a big deal. it was hard to sell a cell phone back then. people did not know how they work or contracts. the carriers relied on british

actor sell cell phones. as it focused on that, a sort of stopped focusing on other things. eventually, selling cell phones wasn't such a good business. >> one of the appeals of going into hardware stores you could talk to the person in the hardware store that what you needed -- >> hang on a second. are you watching this fabulous 1980 cell phone? did you ever carry one of those around? >> i had a back phone -- bag phone. >> i go back to the tenure total return of -36% per year. how is this dog persisted? >> they were making less money and then less money and sort of hung on. it has been clear they were going in the wrong direction and did not manage to justice. >> is this the end of the radioshack brand? >> it is not clear. there are talks to liquidate and close about half the stores, get half of them to sprint. there's been talk about amazon taking over some of the stores.

it is not completely clear there will be no radioshack, but it seems to be headed that way. >> that would be interesting, amazon taking over the brady of shock footprint. great story. go to bloomberg.com to check out history on the slow collapse of radioshack. coming up in the next hour cameron and tyler winklevoss. they want to set up a nasdaq -like exchange for the currency. that brings us to our twitter question of the day -- ♪

>> good morning, "bloomberg surveillance."

brendan greeley and olivia sterns with me, doug holtz-eakin as well as lisa shalett with morgan stanley. how about a morning must-read? in "the new york times" -- doug, this is an ageless debate between long-term strategic economics and we have a problem now, let's fix it. in the last seven years, was there to muchis long-termm to avoid the problems? >> it is a false choice. you don't have to pick long-term or short-term. the core budget issues, are we going to adequately fund national security and basic investments in infrastructure research education, things in the annual discretionary by government or are we going to

get the long-term budget in order? you can do both if you are willing to raise its spending now and put long-term reforms to medicare/etiquette, salsa security. >> the present group every publican candidates, are they long-termers avoiding some of the tough decisions that senator mccain has confronted? >> we haven't seen anyone confront the "long-term." the long-term is here. we get the death spiral. we get tenures from now borrowing to cover interest on previous borrowing. forget long-termism. >> he knows that that is an issue. he agrees. but he is china frame a choice we don't have to make. we can do both. we just have to be quite disciplined. we don't have a political process that is super discipline. if you are elected in 2016, and my forecast on bloomberg is someone will be, or what

government, to terms, so you want to be president or she was to president when this problem hits. that means you're going to have to do something in your two terms. i think it is unlikely we'll want to surprise the american people. we will see this become short-term politics. >> we're going to stay on the budget this hour, looking at the response president obama's budget. this is "bloomberg surveillance." budget and bitcoin report on bloomberg television and your phone, pretty much everywhere. ♪

>> good morning. i love the blue of bloomberg business. olivia was just commenting on it. she is going shopping today for bloomberg business blue. >> what? >> let's get to our top headlines this morning. olivia sterns has that. >> in corporate news, staples in office depot in advance merger

talks according to "the wall street journal." consolidating the retail market for office supplies. no word on the price or structure. the compass have combined about 4000 stores and annual sales of more than $35 billion. they go bonds held by apple, $6.5 billion debt offering led to borrowing cost for as long as three decades through speculation he was interest rates are poised to move higher. as treasury 30 year yields plunged to a record low. apple's last sale was in 2013. new york state attorney general's office tells for national retailers to stop selling herbal supplements. gnc, target, walgreens walmart are selling supplements that are fraudulent and potentially dangerous. authorities said they conducted tests on top-selling store brands and found four out of five did not contain any of the herbs on the labels. >> does anybody at the desk take

these things? g lisa, do you takeinko? i don't. >> no. >> olivia? fess up. do you take gin --help me here. >> this is not what this is about. >> powdered garlic and rice. >> i take a supplement called woodford reserve, and i take it daily. >> we don't editorialize. >> oh, my goodness. tom your posture editorializes. new strategy of picking more fights with congress. doug holtz-eakin has been here before the chief economist and george to be bush economic advisers -- george w. bush's economic advisers. he is a pro.

he knows the devil lies in the assumptions. four .3% gdp growth, 2.3% inflation, 5.2% and implement 10 years out. do these look reasonable to you? is this a way to look at the economy in 2025? >> it is a depressing way to think about the economy. it must reckon thing about this budget is a gives up on growth. it says the traditional american dream is dead. and it is not going to be good for the middle class or anyone. we can't grow faster than two point through percent over the long-term? -- 2.3% over the long-term? >> you are not estimation -- stagnationist. >> we're surrounded by bad policy, but if we fix this, we can do much better. >> what about the argument of the deficit is shrinking? >> beware of -- >> this is good news people. >> beware of simple arguments.

the deficit always gets better when the economy recovers. the economy is recovering, be at all very slow. the core reason it is large and the out reason is but the egg spinning programs medicare, medicaid, sources scared to come affordable care act. what have we done in recent years in budgetary terms? we have put caps on discretionary spending increased taxes, but haven't dealt with the real problem. >> lisa shalett is nodding about the real problem. >> we have a savings glut around the world which basically means there is not sufficient to man's. i know you're going to have some other folks on the program later today, paul krugman been one of them joe stiglitz being another and i am in that camp. it is time for fiscal spending, for fiscal spending -- >> this is what we love.

what discretionary spending can you support? >> there is no question that when they wrote down those caps, they do not think about the policy underneath them. i have zero reservations about getting the national security defense budget up. the 611 number that gates said was necessary, we are way below that. on the nondefense side, there is some merit. i would like to see improvement in some of our infrastructure programs, but we can spend more on that. think about it. suppose we spent $75 billion and we offset that with changes in these big programs over the next 10 years which takes $7.5 billion he or. we spend $50 trillion in the next 10 years. we can't find 7.5 a year to offset this? that is why i can't understand that. >> so something i really wanted to ask about, there seems to be some agreement.

you have been on both sides of this negotiation. help me understand the politics of this. is a significant he is preparing a budget on time and moving past the senate or rather moving past his own party and going straight to the republicans and saying this is what i want, let's? dance >> it would be great if this president could dance. we have seen really poor relations between the white house and congress on a bipartisan basis. i hope -- >> but it takes two to not tango. >> i don't disagree. the deal just waiting out there is we need more defense spinning, the nondefense spending come and know it was to raise taxes, some -- >> exactly. >>none of this discussion is on the revenue-raising side. how about the social security cap is 118,500? i did a chart of the day eight years ago that showed the path of that. we are way below what that has

been for years. would you support raising up that social security cap granted, it is a tax for the habs, the republicans, but is that a dumb idea? >> as part of reform? we have had have it done -- >> do they should raise social security? >> no. the plan is to cut your play by 25%. is that any way to run a pension plan? >> no. >> we need to get -- >> you're taking supplements and you don't even know about your pension plan. >> exactly. >> this is a big deal olivia. >> i know. we will talk about it in the next bloc. >> my retirement is going to be based off your future retirement. they're going to take from olivia sterns. >> don't hold your breath. >> we look at the arts and

culture economic engine. that is today single best chart. this is "bloomberg surveillance." ♪

>> it is 19 degrees in new york

thursday evening, we're going to get to negative numbers. five degrees above zero is one forecast. it is a frigid lovely new york this morning. it is crisp. gorgeous february morning. let's get to our single best chart as we consider -- what are we considering? >> the contribution of the arts to the u.s. economy. the u.s. has been looking into what culture is and how it aptly contributes to gdp. we have some numbers. here is what we're looking at. you are looking at gdp up top growth, and the contribution of the arts to gdp underneath. what is kind of hard to make out is the arts is slightly -- is procyclical slightly, strongly procyclical. it has not recovered as well as the gdp, but was doing much

better before the crash. this is important because arts and culture makeup according to the bureau of economic analysis 4.3% total gdp, greater than banking at 2.9%. doug holtz-eakin this is something -- two years ago, there is this revision of the gdp to sort of reflect the u.s. contribution to the arts, the value that the arts contributes to the gdp. do we account for that correctly? >> number one, it is really hard to measure. you kind of measure output. this art output. how do measure that? typically, you're looking at the labor that goes into it. the second is, where do you draw the lines between what is art and what isn't? i think economics is art. >> the actual sale value of the

art itself and then the value of the ancillary electrician said things that work in hollywood. >> but the thing that most people miss, there is an and norma's faction of the u.s. economy and the not-for-profit sector. it is underappreciated how important that sector is the whether it is higher education or the arts or a lot of the health is in the not-for-profit sector. we don't think about policy toward not-for-profit often. we think of the profit incentives in the disclosures in the funding. >> morgan stanley is focused on healthy cities. that has been a major thrust of the company. how does that for over into arts and culture? >> i think what we are seeing across the country is what we would call the reorganization of america -- reurbanization of america. it is all part of it. >> you know the rotated at the metropolitan museum of art. i was there over the holidays. it looked like rent central

station. this whole idea that arts are dead? >> no way. >> it was jammed. >> they also have this fabulous new cuba show. i think we can all agree the recent movie "the interview" was a piece of art. that is one way to measure it and total box office sales. >> but how do you get the met in there? a new exhibit of existing cuba -- people go to see it and pay to see it. you're producing a cultural experience and our experience how do measure that? it is hard. >> and to his argument, one thing we know as we dug into the numbers is though employment overall for actual artists has not recovered since 2008, has actually gone down, employment for agents of artists has gone up. somebody is figuring out how to make money off of this, olivia. >> just not us.

time for our photos of the day. number three, national tie-in group italia groupn road testing is disbandment. and this international accused the group for violating human rights including objections theft, possible executions. their claims loyalty to kiev and claims have been abandoned. this feeds into resident putin's argument he likes to call the pro-ukrainian forces nazis. there is a violent sect. >> something important, there are a lot of bad guys and once you start a conflict like this it creates scars that take decades and centuries to heal. you don't know what is going to happen once you try to get a little territory. >> the photo is just another reminder that september cease-fire agreement is clearly out the window. number two photo, first time in

800 years, four original magna carta scripts have been united in london. the document establish the principle that everyone, putting the king, was subject to the law. they're being shown at the british library in central london. only 1215 selected winners will be able the see the exhibit. tom keene has entered the lottery. >> this room is extraordinary. they have john lennon' as i believe hip or back writer on the back of his son's birthday card. i may have the song wrong. you wrote one of the major it'll sits on the back of chilean lennon's birthday card it was one year old. >> doug holtz-eakin is nodding. >> i have seen this. he is not making it up. >> i make up everything now's. thank you. >> endangered black rhino born in the k last week. zookeepers name the cap which means "lovely" in nigerian.

they are near extinction due to potion. a rhino sworn is worth more per gram than gold or cocaine. the rhino houses curtly closed off to visitors to give the pair some alone time -- currently closed off to visitors to give the pair some alone time. >> like maternity leave. >> olivia said, if you have pictures of baby animals, go with that. i agree. >> i would go to the bronx zoo. they have real rhinos you can look at and they are just way different. >> do you know what the powdered rhino horn is used for? >> to have to talk about it? >> it is used as a sex stimulant and asia. >> oh, really? >> a fountain of information. still to come in the next hour cameron entire letter -- cameron and tyler winklevoss.

that brings us to our twitter question of the day -- tweet us @bsurveillance. ♪

>> good morning, "bloomberg surveillance." greece blinks, one of the stories this morning that allowed for a risk on. here is world news with olivia sterns. >> net income down for bp which forced europe's third-largest oil company to cut spending. profits fell to $2.2 billion. analysts were looking for 1.6 pinellas. sinking oil prices have forced producers to cut spending and sell assets to safeguard investor return. profit increase of 68%. spain's largest lenders has it set aside fewer provisions for bad loans and revenue increased in the fourth quarter. net income came in at $1.7 billion. the results were in line with analysts estimates compiled by bloomberg. lenovo searches the most in the

year, shares jump after you post a profit that beat estimates and expanded its global market share for personal computers and smartphones. the stock rose as much as 8.6% in hong kong trading, the biggest gain on an intraday basis since january 2014. those are your world -- >> that is a fascinating story. very cool. i like world news. we are doing world news. how about this? australia gave way to the winds of war, the global battle of the currency war as countries take the well-worn pastor currency depreciation and evaluation. lisa shalett's head of investment and portfolio strategy and morgan stanley. doug holtz-eakin as president of the american action forum and former cbo guru. lisa, your front and center on this. what are you focused on the currency wars? >> since the beginning of the year, we've seen about 10 or 11 rate cuts and outright currency

to violation -- >> 13. >> 13? sorry. against the u.s. dollar. one thing we're trying to keep investors focused on is, at the end of the day, this is a zero-sum game. we can talk about growth prospects being rebalanced but devaluing your currency or having several countries to value their currency doesn't increase level growth. >> wonderful work you have the strong dollar affliction and it is all about the currency wars and appreciations. >> quite the opposite. i think it is all about the strong dollar. >> ok. >> critics say we just exporting recession and deflation. >> no, we are actually exporting inflation. think about it. we have a very strong dollar, their depreciating their currencies.

if i'm buying an american product, it actually costs me more. one of the things the united states is exporting at the minute is inflation, because the u.s. and china quite frankly, have higher price level the many other countries. the fact we are exporting is -- we're trying to export inflation while importing deflation. >> i'm going to ask a naïve question, for which i apologize in advance. the assumption is countries are competing to export. how do we know that is what is going on and they're not trying to stem the late domestic inflation to make structural adjustment easier? >> look, i think the central bankers when put in a room are trying to do both. there's absolutely no doubt about it. quite interestingly, i think some of them have been more thoughtful and more explicit about it. india, for example. central bankers in india are very clearly -- >> you study this. which international textbook did

you have? >> i used all sorts -- >> is any of this in the textbooks? >> this is a long-standing issue that goes by to the great depression. the key is someone can be proactive, but a lot is reactionary. the central bankers try to take care of their own domestic problems. >> how do you make money in the currency wars? >> i think you try to figure out who are the winners and losers, who actually are going to be able, in the very short-term, see tailwinds from the lower currency. from our perspective, right now it is going to be the europeans, it is going to be the japanese. >> what about the treasury markets? >> we think there are a lot of opportunities in u.s. credit right now. >> with the 10-year at 1.7?

>> if you look in u.s. credit markets, our investment grade and high-yield spreads have widened at a time when spreads have continued to compress in europe. given the strong dollar, a relative value basis, we are -- our credit is looking very attractive. >> i just got an e-mail from neal dutta who actually quotes ben bernanke on this, the benefits of -- not created in any significant way by changes in exchange rates. the support for domestic aggregate demand. >> interesting. >> amen. >> lisa shalett thank you very much -- >> >> i want to explain why this sneaky coffee and bran muffin just appeared, it is because it is his birthday. happy birthday to you. >> thank you for spending it up with us at 6:00. >> and a can believe you brought him a bran muffin -- and i can't

believe you brought him a bran muffin. >> lisa shalett thank you for braving the cold. i strung in dollar front and center -- australian dollar front and center. stay with us. more of "bloomberg surveillance." ♪ . .

>> this is "bloomberg surveillance." >> greece links as its new

leaderships from debt to debt exchange. merkel insists athens continue market reforms. measles, well, it was declared eliminated years ago. chris christie and rand paul says give parents a choice to bring measles back. the twins winklevoss want a bitcoin exchange. i see a debate on bitcoin as well. we say good morning, everyone. this is "bloomberg surveillance." live from our world headquarters in new york, it is tuesday february 3. i am tom keene. during the olivia sterns and brendan greeley. let's get to our top headlines. here is olivia. >> tom, greece continues its european roadshow. the finance minister met in london with about 100 financiers including george osborne.

he proposed to exchange new bonds linked to the country's growth. the country needs a modest amount of easing. here is international finance chief charles the larisa speaking earlier on bloomberg tv. >> i'm amused by those who speak about the small size of the greece economy and suggests this means it has very little systemic risks. i think we should have learned over the last two years that none of us can fully and easily anticipate where systemic risk may come from. >> european stocks advance on so-called greek retreat. germany's 10-year yield fell below below those of japan for the first time on record. now to australia where the central bank unexpectedly cut its exudation to a new record low saying its currency remains overvalued. the world bank of us really a joins -- the world bank of

australia joins a dozen other banks so 13 banks this year. lowered by 25 basis points to 2.25 %. >> parents should have some choice to vaccinate their children according to governor chris christie. his remarks, made a measles outbreak in california that a second more than 100 people. the governor's on a three-day trip. he quickly backed away from his remarks, his office is due to a statement that says "with a disease like measles there is no question kids should be vaccinated." it was the largest audience in the history of u.s. television. nbc telecast of super bowl xlix drew 115.4 million viewers beating last year's record of 112.2 million. halftime show featuring popstar katy perry did not hurt things. along with her dancing sharks, that is me on the right people

also state with the game and were treated with a last second interception, the sharks when the night as far as i'm concerned. >> very good. uber -- this is a surprise, our brad stone, a new adversary for over. google, one of the biggest investors, is preparing to offer its own ride-handling service most likely with its long in development car driving -- and self driving car. uber executives have seen screenshots of a ride-sharing. >> we have dueling headlines because brad stone gets this scoop -- today we have uber saying we are making driverless cars, too. they are creating a center of development -- >> do i want a driverless car? >> the technology two years to

five years away from sub do you really believe the paste the government moves that regulars are going to approve driverless cars on the streets of california, yet alone new york city? >> i took three ubers yesterday and the snow. i can i get there with a driverless car. >> olivia is asking the right question -- are we going to get there with the government? >> you can take a driverless car along with a golf cart around your private estate. you will not take it on the streets of san francisco. why does uber have so much cash? in part because google ventures has investment in huber. the amount of money could find the entire driverless car and investor. >> dirty pool! i love it. >>a a little australia, more greece nymex crude well over $50, some joy in the hydrocarbon patch. all can agree on economics of this february is surreal,

negative interest rates investors and business must adapt to our new economics. randall kroszner is professor of economics at chicago. he studies the in between of economics and finance and finds a primal stream for control and stability. guys like you, women like janet yellen want control and stability. how much confidence do you have that given the greater distortion now that we can maintain stability and policy that leads to a constructive outcome? >> clearly that is one of the key challenges, trying to make sure we stabilize and prevented a repeat of the great depression, so that was something that was very important. of course now we are trying to have an exit strategy as the economy seems to be moving forward. there's so much fragility out there. everything going on in europe the challenges that central bank's around the world are facing -- cutting rates.

they are facing the deflation threat that the u.s. face a few years ago, so a lot of challenges. ask you invented standard deviation. [laughter] i am making a joke. i promise i will send it out in his glory on bloomberg radio plus, but it is a measurement of where inflation will be five years out and five years forward, and it is for standard deviations off a cliff. even a guy like that, it gives pause to. does it give pause to the other governors in the chairwoman? >> not just guys like me, i think everyone will say hmm, something is going on here. we focused on this longer looking measure of where inflation is going because what it thinks you want to see is what are the markets thinking about what the fed is doing? in order to see that, you have to look at the short-term movements up and down, the longer movements, five-year inflation 10-year inflation, that will mostly be expectations

about the fed. if that moves down, that suggests that the markets are concerned that the fed will not be there to fight deflation. >> we were talking to lisa shalett of morgan stanley asset management and doug holtz-eakin who used to work for you at the council of economic advisers and currency moves around the world, and i am trying to -- these countries are not trying to export more. what they are trying to do is stimulate domestic inflation. do you see this movie same way? >> i do not think it is a currency war. i think it is motivated by challenges domestically. what happened in australia overnight is another example of this. they are facing a lot of downward pressures. austria's room is a commodity-based economy. -- australia is very much a commodity-based economy, and they are facing downward pressures, so they are cutting rates not because they're are trying to manipulate exchange rates but because they see a significant downdraft in the messy demand. >> a guest said capitalism

hinges on hopes that you are going to get a return. do you agree with that? [laughter] it is a real question for step capitalism is breaking down its margin because you just cannot get a return. >> certainly someone who is a fixed income investor might think that. it is highly unusual circumstances. the last time we had negative interest rates for a significant period of time was the 1930's, and the reason people do that was there was a strong demand of a small number of state assets that people were pouring into german bounds, for example. >> is a cataclysmic? >> cataclysmic i am not sure about, but look what happened in switzerland. people wanted us with assets and there are not -- people wanted swiss assets, and there are not a lot of them. >> what happens, randall kroszner, if we get a minor rate increased to get normality into the system? what will be the consequence is

not two hours later but two days two months two years later? i do not get an answer that it will be grim. why don't we get back to normality? >> the key is -- what is normality in this world? it looks like rates will be lower than to the federal reserve's -- from 4% down to 3.75%, so there is probably different between the way supply and demand of capital will be working, that suggests rates may be lower in the long run, and that also affects the strategy and the consequences of trying to do that. >> you did not answer the question. >> he did not. >> if there is a quarter-point rate increased tomorrow, you're the smartest guy on the planet on this, how does our world change? >> a lot of the context of what is the explanation for why there would be the change?

>> it would have to be with massive forward guidance. >> exactly. what it be raising rates because it said gosh we have looked in the data and the economy is coming back strongly, we do not have to look at all the nonsense in greece or the geopolitical risk we are just powering ahead. unemployment rate will go down below 5% full stop in that context that is great. it is really the economic context in which it is explained and understood. >> that is beautifully explained, syriza, randy, well done. >> and the entire world stops. >> know, libya, he is the smartest -- no olivia, he is the smartest guy in the world on this. >> i know. the vehicle lost twins will be with us. stay with us. ♪

>> good morning, everyone. "bloomberg surveillance." everything is like this everything is doing better this morning, including the better than good morning must-read. back to the super bowl. >> my morning must-read comes from "bloomberg view." "in both cases is hard to expect that the brief amount of time it takes to evaluate the player means the outcome was predetermined or co-she is

talking about the evaluation of julian edelman. "it's yet another way the nfl is using controlled messaging to persuade us its biggest from their being handled, when the only thing really being handled is us." >> so i thought was interesting to me watching the game with the way nbc reported assiduously blow-by-blow, sorry to use a bad metaphor, on what was happening with the concussion protocol. they kept using the words "concussion protocol, and that " and that was clearly something being fed to them by the nfl. the other news to watch, there's what happened on sunday, and there is right now looking at news, ferrari third, -- february 3 the district judge says she will not prove that $335 million

settlement. she still wants to look at better payouts, better terms for some of the players, so this is not behind the nfl. >> tell me about what kavitha said. >> she is questioning the new statistic that the nfl is putting out, reporting that concussions decreased by 25 percent. it could be anecdotal. it does not look like a scientific survey. >> i can state unequivocally hockey is changing. they have said if you hit a guy in the head, you will sit out x number of games was that somebody on the bruins just got a $40,000 per game penalty. >> what about the enforcer culture? >> it is a little bit changing. but football, it was somewhat of a action ballet. >> think about how many professional footballers come out and say they will not let their own children play football. >> yep. >> would you let your kids play? >> my cousin played division i football, and he said he is not

worried about it, he would let his kids play. the difference he says is between college and the pros. he is fine with college ball and would put a cop -- a cap on it after that. >> that is brilliant. thank you. kavitha davidson of "bloomberg view." bob iger is at 4:30. stay with us coast-to-coast "bloomberg surveillance." good morning. ♪

>> good morning, everyone. "bloomberg surveillance." when you to get to world news. >> rupert murdoch's world news will not be charged in the hacking scandal. it looked into whether allegedly payments to u.s. public officials broke anticorruption laws, but the department says it is not pursuing charges and is closing its investigation.

alibaba looking to boost its overseas expansion. the chinese company is offering loans through lending club. u.s. businesses will be allowed to apply for short-term lending gloves. alibaba wants to reach some 2 billion individual customers and 10 billion small businesses outside china. sticking with alibaba founder jack maas says the company has resolved is problems with china's state administration. the regulator last week accused alibaba of all kinds of bad behavior, selling counterfeit goods, taking bribes. during a speech, the billionaire says the matter was handled "at the first stage." those are your latest world news headlines, olivia. >> remember bitcoin? we used to talk about it a lot a year ago, when the virtual currency peaked at $979 per unit, now under $250. as much as we have our own doubting thomas onset, there is

serious money acting including marc andreessen and a guess we receive at on "with all due respect." >> i think bitcoin is a 10-year story, and i'm very bullish on it over the long haul. i think in the short run, there is a lot of growing pains. >> joining us now to discuss the future of bitcoin and their plans to build a nasdaq-like exchange call jim and i are cameron and tyler winklevoss. good morning, guys. thank you for coming. >> morning. >> i need you to start with a defense. the prize has collapsed, there are ties to organized crime, and then you have the currency just disappearing. what should we have faith in that point? >> -- in bitcoin? >> like any technology, we are going through growing pains. we look at 885-year, 10-year time horizon. th -- we look at it in a five-year 10-year horizon.

over the long term, it will build an interesting situation. >> tyler, you guys have a fixed your wagon to bitcoin specifically or all currencies? >> right now it is bitcoin, but we do believe there are other currencies as well, but gemini ais an agnostic platform. right now just that point. >> -- right now just bitcoin. >> part of that problem is there has not been u.s. regulation and that regulations being built, and just around the corner. people have been forced into use exchanges offshore in deal with those risks and lack of transparency lack of regulation so i think that a u.s.-regulated entity is the next up to really bringing people who are able to transact on a foreign exchange into the bitcoin economy in america. >> is this thing going to want

to the first quarter? what do the regulator say? >> we are waiting on licensing. that is the regulators, you would have to ask them, they know. a publicly they said q1, so we think q1. >> i took a look yesterday at the amount of transactions per day for bitcoin, and it is not going the way you guys would want it to go. it is not looking like this. it is below 45 degrees, so what do you do to make that growth exponential? >> toodle is a technical term by the way. >> right. building things like a u.s.-based exchange is a key piece of that, then the next piece of the application layer, so i cannot think you can really have the explosive growth without the actual infrastructure, so if you take it the oakland a's of the other

days of the internet, without the rotors in the cisco -- the early days of the internet without the routers, and the c iscos. >> math people out of round university, schools to the south of the charles river, you guys gets more people around you. where is your trip point on the price of bitcoin/ if you have got a time series going south, do you have a price of bitcoin where your exchange does not work? >> i think there is a price of bitcoin where bitcoin does not work. >> where is that? >> $0. bitcoin the asset fuels mining, so certainly a very low price the bitcoin is dangerous, but we are not they are anytime soon, and i think there is so much money, the biggest money is still on the sidelines. >> you can run your exchanges at

$10 versus where is it now olivia $242? >> the volume of bitcoin has been high over the past couple of months so from an exchange perspective, there is actually a kind of volatility, but obviously from a mining perspective, we need to incentivize the minors who are keeping, basically archiving and auditing the networks, so of the price is zero, obviously beholding does not work, but we are not at the price where i think there is a real risk there. >> how much bitcoin have you guys bought? >> i think a year ago we mentioned that we owned around 1%. >> since then have you been building the position? >> we have not sold any. >> do you mind it? >> we do not mine. mindini is such ang -- mining is such a professionalized. >> as you say, your exchanges

gemini still hoping to launch in the first quarter. >> yes. >> thank you, guys. that brings us to our twitter question of the day -- does bitcoin have a future? do you agree with tyler and cameron winklevoss? tweet us @bsurveillance. this is "bloomberg surveillance." on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. ♪

>> good morning. this is "bloomberg surveillance." i am olivia sterns. let's get you to our top headlines -- tables and office depot in advanced merger talks according to the "wall street journal." the two companies combined have

about 4000 stores in annual sales of more than $35 billion. a mega bonds deal by apple, the debt offering lets the iphone maker lock in borrowing costs for three decades. the move feels the conditions that u.s. interest rates are poised to move higher. last week, u.s. treasury yields lunch to a record low. and the new york state attorney general's office tells national retailers to stop selling herbal supplements. they are fraudulent and potentially dangerous. they conducted tests on top-selling storebrands and found four out of five not contain any of the herbs on their labels. those are your top headlines. >> this matters not our guest host, randy kroszner, former governor of the federal reserve system, at the booth school of chicago, you did the american research on the foreign exchange.

we continue, we address the core and seaworld -- the currency wars. robin rajin now in india, how is he doing? >> i think he is doing a great job for stop you said inflation was too high so he started raising rates come and look at what is happening now. he is able to cut rates, so he really needed to break the back of inflation expectations, and i think he was successful in that. >> when you talk about currency wars in an emerging market the united states, how do economics is like you talk to politicians? >> very carefully. [laughs] it is always a difficult discussion. sometimes the politicians want to talk about economics, and sometimes they don't. >> they just want a week or whatever the currency is. >> it depends. it depends on what the largest export is. it has a big influence. the strength of the dollar has not hit exports to much.

we will start to hear a lot more political cries if we see exports start to fall off. >> i want to start at the idea of the fear more errors. currency wars, we are all going to die. i think of a great economist, william klein, who 10, 12 years ago wrote a classic article called "do we need another?" and the summary of the article is everybody stop panicking because currencies compensate. across each of the pairs everything sort of levels out versus the panic of the yen for the panic of this. explain compensating within this. >> certainly each currency trades against another. there is no absolute price. they are all relative prices. that is something to keep in mind. there is probably an apocryphal story about during the times of the debates of the court, that is our currency and your problem because they are intimately connected, so it depends on the

market circumstances. right now, the dollar seems to be strengthening against all of the other currencies. the u.s. economy seems to be a bit more stable and we are facing less of a deflation challenge, but the deflation challenge me to be there. >> everyday bankers go out and they say let's manage the currency, flat or weaker. nobody in the united states is managing the dollar stronger are they? >> that is up to the treasury department -- >> oh come on jack lew is measuring -- i have got to make news here. >> for many years, we used to hear people say strong dollar policy. whether they actually pursue those policies is a different thing, but that was the rhetoric. there is certainly some exporters i would prefer to have a weaker currency, but i think generally it is the strength overall of the economy to have a stronger currency, and what we really need is to have the markets determine it. >> 42 miles south by southwest

of chicago there is a house, they love the chicago blackhawks and they are going ok, but what does this mean for me? what does a modestly stronger dollar mean for america? >> the key thing is -- what are you importing? >> toyotas. >> toyotas or oil or other things that might be a little less six and said if the dollar is strengthening -- a little less expensive is the dollar is strengthening. >> are we going to have a strong dollar? are we going to do not the plaza court drama but up we go ? >> the dollar has been strengthening her mother currencies have been weakening partially because of the challenges in the domestic economies, much weaker growth and the response of that has been lower interest rates. >> i need a prediction here. forget about this ex-fed governor stuff. i need a production -- are we going to see a further dollar strength? >> i am enough of an economist not make strong protections, but

i do not see any forces going against the strength of the dollar now. >> boy, he dodged that twice, randy kroszner. olivia? >> u.s. futures up by six points u.s. 10-year up by 1.7%. this is "bloomberg surveillance." i am olivia sterns here with tom keene and brendan greeley. >> the houseboats of a to repeal the of horrible care but for more important -- the supreme court will hear arguments this month in a case that could make obamacare unworkable in 34 states. millions of people with either premiums jump. we are looking at 64% of americans they say congress should then act full stop among those 64% 40% republicans. vespa new roof -- ramesh

ponnuru you are one of the brilliant young things. what is congress going to do? >> i think there is a lot of debate among congressional republicans about what to do with it. i am in that 64% to think that congress should act, and i think what congress should do is offer states an option, even if they have not set up these exchanges on their own and thus are not eligible for the subsidies under obamacare they should be given the right to opt out of all of obamacare's regulations. there are people who have been getting these subsidies illegally and should be grandfathered in and allowed to get those subsidies whether they are in an exchange or outside an exchange. >> ramesh what is the evidence that obamacare is unpopular or not working? >> well it has consistently been unpopular from before it passed, after it passed, and continuing on. most people in most polls have

been saying that they do not like it. >> with all the respect, i have seen surveys that say the exact opposite. it might be unpopular with republican lawmakers, but it is not a popular with people who signed up. or it. >> well, yes, -- who signed up for it. >> well, yes, the subset who signed up for a do like it, that is right, but the overall numbers with the public as a whole, the vast majority show that it is unpopular. >> does the republican party have a consistent problem over the last five years, which is that despite the various ways in which they have fought obamacare, don't they need an alternative? it is not just enough to invalidate it through this court case. what are the alternatives? >> i completely agree, and there are alternatives out there. senators hatch and coburn have introduced a proposal for an alternative to obamacare. they need more support. you have got other republicans who are interested in lending

that hands, senator rubio was one ways and means chairman paul ryan in the house is another one, but they really need to move pretty quickly because the supreme court is making this less and less of a theoretical issue. >> ramesh, how true is it that once a log gets going, it has its own life, its own critical mass? are we at a point where there is no return on the formal care act? >> i do not believe that is the case. partly because of the way that law is structured. the law is still a work in progress over the sense that over the next years, it will replace the cadillac tax, the medicare board, the individual mandate starts kicking in and in strengthening. the risk corridors go away, so there's a lot of stuff that is going to change with this law. it is not too soon to say it is entrenched. >> i think it is a strange starting point brendan because this is a drafting error

that republicans are trying to exploit. >> it is not a typo, right? there is a reason that the administration is not making the case that it is a typo in court. it is a mistake in a sense that it was a poorly drafted law that if they were doing again they would do differently, but the fact is the law says what it says, the administration chose to go beyond it, and that is why there is an issue in front of the court that all. even courts that sided with the administration have noted that the opponents have a strong case. >> real quick, ramesh, if the supreme court case does not go your way does the repugnant party's it with the friends of the family and admit that the of formal care of exist -- that the affordable care act exists? >> it is important to note that it exists but there are better ways to propose american health care and to keep proposing the alternatives. >> all right, ramesh ponnuru we

will have to have you appear on set next time so can give you a hard time in person for stub did you catch our last segment? does bitcoin have a future? this is "bloomberg surveillance." ♪

>> yesterday, brendan greeley

stepped out downtown and the island of manhattan and saw a shadow, so there will be six weeks more of kids sick. >> i pulled the covers back over my nose and said that is it, i am not coming out. >> that is a beautiful morning. >> unfortunately, it is not work that way. i got in the car and came to work this morning. but i get to talk to betty liu. betty, the president dropped his budget. that is a d.c. term. what have you got today? >> part of obama's budget has included taxing the wealthy, rights, and taxing corporate america at a higher rate. that has republicans, conservatives up in arms, and that is what we are going to talk about with a nobel laureates, professor at columbia. he will be joining us later. someone who may be pleased with obama's plan will certainly be the namesake stiglitz.

some are calling obama the terminator of tax collections. i want to read you one vote, -- one quote -- obama's plan to reduce boring earnings at a reduced rate implicitly recognizes the foolishness of the system yet it fails to follow the insight to its logical conclusion -- abolish most taxes on overseas earnings altogether. why is no one talking about that? why not give corporations a tax break and let them bring the money back? >> because they have not shown they will spend it when it brings back home, but randall kroszner in 2001, the last time we got the capital gains tax, do you want to stick around and maybe have an arm wrestling match with joe stiglitz? what do you say to that? you are the architect of what will be dismantled?

>> i was there as part of a team. i think it is very important to think about growth and how do you promote growth is that is what is like to give people opportunities, that is the key thing. if you don't have growth and you reduce the amount of investment, that is problematic. >> ok stiglitz's nobel prizes for information. from what we do not see out there. what don't we see up there in the budget debate? i would say technological progress, but what is the answer? >> what i would really like to see is in the infrastructure debate a focus on cost benefit because it seems to be just big picture, oh, we should spend more, we should spend less. there are certain projects that would be very valuable to break down bottlenecks, to help promote -- >> wrigley field? >> that is one of them. >> bridges to nowhere -- >> but there are some bridges in trouble, so rebuilding that would break down a bottleneck. >> englewood, new jersey, did you see how he got that?

>> what can i say? all infrastructure develop it is local. >> that is true. >> thank you so much, betty, looking forward to "in the loop" with joe stiglitz. >> you should stick around for that wrestling match. >> oh, it is a wrestling match now? >> meantime, our twitter question -- does bitcoin have a future? tweet us @bsurveillance. we will be back in just a second. ♪

>> good morning, everyone. "bloomberg surveillance." amid the new volatility, what should you do in the markets? brian belski at bmo capital markets will be with us tomorrow. this is an important moment to talk to brian belski after the miserable january we saw in the market. right world news with brendan greeley. >> falling profit for bp was down. oil prices disrupts spending. profit fell from $2.2 billion, sorry, from $2.8 billion a year ago. sorry, profit is at $2.2 billion for stub analysts expected $1.6

billion. they sell access -- they sell assets to safeguard returns. spain's largest lender santander says revenue increase in the fourth quarter, net income came in up from $979 million a year ago. the results were in line with analysts' estimates compiled by bloomberg for stop lenovo posted process that beat estimates and expanded profit share for computers and smartphones. the stock rose in hong kong that is its biggest gain on an intraday basis since january 2014. those are your top world news headlines. >> speaking of world news, let's look at angela merkel. a few headlines, not a lot, but merkel really throwing the ball back to the greeks. >> we have an waiting for angela merkel to respond forever. this event is now a week old.

hans nichols joins us from berlin. ok, tom. >> let me pick this up, hans if i could about the domestic politics in germany. one of the pressures to -- what are the pressures the chancellor faces in germany? >> they oppose any debt write-down or debt haircut however you describe it for greece, that has been clear in the last week. it has been clear, clearly angela merkel's position. the latest is the greek government is still working on its position. there is still a wait and see mode, and it is important to note that there has not as we know of in a meeting between merkel. >> i want to go to germany. is it a unified germany or a fractious german people? >> at least on the issue of debt

forgiveness for greece, there seems to be a fair hot of unanimity, so that should not be the case. the latest poll i felt was in the 70's, low 70's on whether or not you should have any debt forgiveness, so there is not an east-west split on this issue not in the slightest. >> hans the answer we got from angela merkel today was a little boy, she basically said we do not know what their plans are the we have to wait until they come forward with a plan, but there is a plan, and she has thoughts on this, right? >> angela merkel, if anything is a very shrewd negotiator. we saw that in 2010, 20 11 she holds her card very tightly, makes a decision at the very end. she is also a consensus builder. one thing to remember about angela merkel is she is fully committed to the european project, and she wanted to succeed, so in some ways, there is a view that a common view at least in the states and elsewhere in europe, that germany's holding everyone back with their austerity. you run up by angela merkel's

people and they are offended. i think she is doing everything possible to keep greece in the euro to make the european project closer, tighter, and more fully integrated. >> all right, hans nichols, with angela merkel, he is our merkel whisperer. thank you. >> over to the united states, it is a conundrum to calm. when will the fed began to raise rates? th debate ise about how they should raise rates as it takes a proverbial punch bowl away. randall kroszner is that chicago's booth school of business. you had a tenure at the fed. how critical is this measured? alan greenspan was associated with a measured approach. is there and academics to say that works? >> there is still a lot of controversy about the exit from very low interest rates that greenspan had engineered. so going in a various gradual, smoke, predictive way is very good. others say that created too much dependence on central-bank policy.

when i was at the fed, 2006, 2009, as we entered a lot of these extraordinary policies, we talked about first making sure that there would be an ability to access, and second how that would occur. we did not think that would be happening six years or seven years later. >> yeah, it was a long time we were measured. >> i am sorry, i thought we were done being measured. we are patient now. >> yeah, whatever it is, but there it is, measured. >> every time i hear patients, what i think janet yellen is actually saying is listen, we are going to make a decision. i got this. don't worry about it. we are figuring it out. >> these are all different ways of saying they are data dependent. people want the number. they wanted some timber 19, 2:00 p.m., this is going to happen, but it it is not really that way. it is about where the data are, and it is difficult to predict what is going to happen whether it is with respect to greece or

exports oracle bunch of other things. >> patient is something we have heard a bunch of times, the new world we heard from janet yellen, international development. what you think qe and europe means for the time and patient of liftoff in the u.s.? >> i think the kiwi and europe and the other interest rates cuts we have been seeing around the world -- >> 13 since the start of the year. >> yes. >> this suggests that there is a lot of deflationary pressure, a lot of slowdown and the rest of the world, and that cannot help but have some impact on the fed was thinking. the u.s. is not nearly as open an economy as germany or austria or others, but it still has some impact, and i think there is a slowing going on in the rest of the world. >> interesting. it is time now to go to our agenda where we look at the stories and shaping the day. brendan, let's start with you. >> my agenda is back to europe. yannis has been spreading out

across europe. the basic game theory, you engage as many people in negotiations as you can at one point, but at some point they will have to return to athens, and they will have to figure out exactly what their position is. >> mine is on vaccines. austan goolsbee reach weeding out something i had on vaccines this morning. this is heating up. this will be a huge deal. a couple more choice comments come in this will truly be an election issue. >> it is. >> the cdc now says about 102 cases confirmed of measles and 14 cases. >> and we get the month, and what is after thatt? >> rubella. >> we do not know the culture politics. this is rich areas of california, we have got to figure at what the culture of politics is. we all know what side we stand on. >> what is chris christie saying? >> he said "whoops."

>> exactly. >> mine is the weather. it is freezing on the northeast coast. boston has had 40 inches of snow, as much as they typically get over several months. that is how much snow they have had the past week. 19 inches and chicago. we had two rounds of the superstorm. the second round we prepared for much less but it looks much worse. >> it proves what we all know to be true -- god is not a pats fan. >> it is true. they have delayed the pats victory parade up in boston. >> it is getting cold earth on thursday and friday. rob carol will provide coverage of the dynamics. is it a vortex? we are in a polar vortex. twitter was unbelievable, the twitter response today. >> yes, we had tyler and cameron winklevoss on, cofounders of the winklevoss trust as we want to

talk bitcoin, we asked -- does bitcoin have a future? first, bitcoin has a future as long as people put faith in it and value it. consensus is needed for a scope of the marketing campaign. second -- absolutely, only yesterday pan am, blockbuster, and others said it would except that point. --would would accept bitcoin. the third -- i will believe bitcoin has a future when tom keene can buy, cold storage it and it's been it within a two-hour show. >> heremes to come down with bitcoin. >> you know amazon has said they are considering it. >> the winklevoss, whatever the name is, just talking about the exchange. >> they were pretty coy about their holdings as well, but are they hedged against the forex risk of all of this holding that they have got? >> i'm just glad we got through the hour without you rowing.

>> i do that, yeah, that was my -- on radio, michael mckee and i are rowing. stay with us on "bloomberg surveillance." >> back of the arms and together tom. >>♪

>> good morning. it is tuesday, february 3. you are in the loop and i am betty liu. we are 90 minutes away from the opening bell.

the president is out with his new $4 trillion budget. we will get the job report on friday. greece is in a fight over austerity. plenty to talk about with joseph stiglitz. member this ad? one of the hits on sunday night. how victoria secret uses this to kick off the valentine's day marketing push. one of the angels, age rihanna lima, joining us later. president obama's new budget calls for higher taxes on corporations and top earners. republicans, likely to reject all of those. question is whether both sides will be able to discuss overhauling the entire tax code. is this a step in the right direction? a new twist in that story about radioshack filing for bankruptcy. according to people familiar