michael mckee. since michael was here yesterday, i will let you go first. also, a suede vest? that is another level. classic is really not a big competition. classes always you look like that. but tell us what you thought yesterday. >> i think the fed pretty much have a plan and a plan is to just wait it out until we see more on crete evidence and more economic indicators of what is actually going down. we have two months and two more months, to find out if anything can disrupt monitor policy. i think the fed is doing a little bit of -- they have the plan by mike tyson. he said, everyone has got a plan until you get punched in the mouth. >> so you are a bit off either one. >> we see the split in reaction here it almost every economist says you get two months, we take it out in march or the march and april meetings we do not raise rates. the economic community came out of yesterday's testimony. the fed will raise rates in june for the first time. that was the message from janet yellen. the bond market sees it completely differently. they picked up on her comment about how we ar

earlier on "money clip" he sat down with michael mckee for an exclusive interview and michael asked himcould go wrong with zero on from an analytic aces. >> a number of things could go wrong. the fed has opted to want to keep a large balance sheet and raise rates. we don't know if in some form or fashion we will have to raise rates are how the economy will respond to that and how to respond to the balance sheet. everyone thought would week but buying assets after qe3 that rates were going to skyrocket but they've done nothing but go down since then. i think there are a lot of unknowns and we are in uncharted territory. >> you can watch the entire interview at bloomberg.com or on the bloomberg tv plus tablet app. let's get you some of the top stories we are following on this wednesday. the price of crude oil at the close of floor trading today, up at $51.22. congressional republicans have won a hollow victory on the keystone pipeline. both chambers have passed a bill approving keystone and it's on its way to president obama who has already promised to veto it. neither the house nor the s

let's bring i michael mckee. what do you make of this? michael: i was wondering how the weather might have impacted this . the northeast might've suffered, and it did. but 7.1% in the west -- california had the warmest january since 1895. it is not just a question, apparently, of what the weather is at this point. that raises questions -- if the weather is bad and people don't go shopping browsers, they will go when it gets better -- shopping for houses, they will go when it gets better. stephanie: all right, michael don't go anywhere. we have more to cover this morning. alix: i think we have a lot more to cover, but it is time for the top business stories of the morning. once again the clock is ticking for greece. the government has until the end of the day to come up with new financial policies in exchange for funding. that is part of the agreement to extend bailout funds for four months. greece's finance minister spoke out in athens. >> we have promised institutions it will be submitted in good time for them to have as much time as poss

michael mckee and joe. mightmichael: the comment that it was a to meeting delay has market participants believing the minute they dropped the phrase they will start raising rates. she is trying to address that by saying patients means -- patience means a two meetings. joe: it seems like a halfway step down. she is not expected to take monetary -- to make monetary news. stephanie: michael, isn't there an argument to be made? how about just doing some fundamental research and investing in countries long-term. >> she did give you a clear signal. she is very positive today on the employment situation. that is why we are getting this reaction. she is sticking to the fed line that inflation is going to rise. she says we're going to raise rates once we judge that him collation -- that inflation is moving back towards target levels. it comes out of the gdp report. if we get a good one, we will see the course cp giving you a hint that it is coming. then, you will look for the fed to get more aggressive. stephanie: i

we are going to send you to headquarters where michael mckee has more. >> it has been an interesting question for the fed why did retail sales come in so badly? consumer confidence is it as high as it was. falling back to 93 point six from 98.1, analysts had forecast of a 98.1% reading unchanged. apparently the rise in gasoline prices we have seen in the last couple of weeks may be having an effect. current conditions fall from 109.3. expectations have fallen back as well. the other number as the fed watches is inflation expectations. they have gone up to 2.8%. they suggest maybe americans experience the ideas of higher prices. it gives them a little more faith we may see prices continue to rise, inflation continue to rise. it brings them closer to trying to raise interest rates. >> thank you. it is time to take you to the top business stories from around the world. matt miller has more. >> we're looking at an all-time high for the s&p 500, breaking through 2090. the dow back above 18,000 for the first time this year. you can see it there. mastec less than 100 points away from hittin

we are going to send you to headquarters where michael mckee has more. >> it has been an interestinged why did retail sales come in so badly? consumer confidence is it as high as it was. falling back to 93 point six from 98.1, analysts had forecast of a 98.1% reading unchanged.

tom: stephen will be with me on bloomberg radio with michael mckee. looking forward to that conversation. look to washington. here are the options. delay until march 19. have mitch mcconnell cram legislation down the house's throat. house republicans fight the president. they may fight their constituents, who want a secure america. a shutdown at the department of homeland security. peter cook in washington. what are you focused on in this madness? peter: i'm watching the llamas on capitol hill. it is an unusual situation. the tension is between republicans on capitol hill -- republicans in the house and in the senate. we've seen it play out in public. john boehner saying over the last two weeks he has not spoken to mitch mcconnell. you will see republicans in the senate passed a clean funding bill. throw in the towel over the fight of immigration. you will see the house do something very different. pass a three-week extension and come back to fight. john boehner is not willing to capitulate. his conservative conference are applauding him. they want hi

michael mckee and the bloomberg senior economist. what is the single biggest risk and drag on the economy. >> confidence. a lot of crosswinds in an economic environments there. it could be a problem. a lot of things out there like oil etc.. could be managed unless you want to sit back and wait to see what happens. >> i am on a similar age to mike. the real risk is a threat to corporate earnings, which translate to an impact. we have seen different multinationals impacted. experts have been a critical economic engine. it is 12% of gdp but accounted for a much outsized portion of economic growth ear the export sector, if it stalls, which is likely to happen given what we are seeing a madonna, -- i do not see. but certainly with many extra x were earning, they turned negative for the first time in the next couple of years. we in impact on orders because of the dollar. >> now that the consumer is doing well, why does it matter less now than consumer earnings? classic matters. the whole wage growth story will be dictated by the amount of

. >> aren't michael mckee, with the latest on factor the -- factory orders. >> writing some big checks. lawsuits. s&p will pay about $1.4 billion to settle claims in inflated ratings on subprime mortgage bonds. that suit filed by the justice department in 19 states and the district of columbia. the firm is settling a similar case with the california public employees pension fund. s&p will pay 125 million dollars. we may be on the verge, though i feel like i have been saying goodbye to radioshack. the chain is prepared to shut down any bankruptcy deals that would sell about half of its leases to spend and close down the rest according to people familiar with the matter. the new york stock exchange extended trading in the stock yesterday afternoon. meanwhile amazon may bolster its order operations by buying some of radioshack's property. shaq has more than 4000 stores right here in united it. the price of oil is up here that is right, up as much as 4%. back over $50 and now -- a barrel before the first time in 40 days after more energy companies said they are cutting production. 94 rigs

coming up in less than an hour, michael mckee will be sitting down with the president of the presidentiladelphia fed bank. a mistake i made yesterday in our conversation about pepsi, i incorrectly said the company had added shareholder and well-known activist investor nelson to its board. bill johnson, the former ceo was nominated to the board back in january. since then, he has best off -- backed off his push and has endorsed the management of the company. that was a mistake on my part. nelson is not on the board of pepsi. my mistake, my apologies. >> frito-lay, the snack business. i love doritos. do you like doritos? >> i don't eat doritos. i'm sorry. >> do you think your job is tough? what about the guy told to turn around yahoo!'s mobile business? we will ask him about that, next. >> on the road to an nba title. the ceo of the philadelphia 76ers is convinced he will get there. you would not know by looking at the standings. stay with us. ♪ >> welcome back to "market makers." some call it mission impossible. fixing yahoo!'s mobile strategy. or creating one. adam took over as head of

the market data is relatively new, and according to michael mckee, it does not move markets very muchver 50 over the expansionary number, and it is coming in higher than the survey estimated and higher than january. january was just at about 54. this one was coming in at 50 43. we have seen a turn upwards in this reading in december after months of decline. betty: thank you so much, alix steel, on those pmi numbers. cisco ceo don chambers speaks out on asset investing. ♪ betty: even with shares of cisco near a seven-year high, the ceo, john chambers, says the stock still has room to run. he shot down -- he sat down with erik schatzker yesterday. erik schatzker is joining me. he says he talked to know activist investors? erik: it is important to consider because chambers wants the world to believe that cisco is in as good a position today to take advantage of what he calls the digital era as it was in the mid-1990's when he became ceo to take advantage of what he describes as the information age under bill clinton. he is bullish could not be more bullish, and he has a couple of good qu

. >> i do that, yeah, that was my -- on radio, michael mckee and i are rowing.berg 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