the second one at mckee, activity, very slow here. we were seeing north 87 and northbound 280 out of the area, showing more slowing, but folks are sticking it out, making good progress. so they will be showing that typical flow for the rest of the freeways now. we watch as that might affect the area over the next 20 minutes. coming across the peninsula, easy drive for 101 and 280. university avenue, typically shows slowing as folks head to 101. dumbarton plij bridge is not th problem. san mateo bridge, looks steady over off of the high-rise. but a report of a stall or a vehicle with mechanical vehicles might be sticking into the slow. there's no big backup. look from the other side, toll plaza side, see if there's a jam. no, smooth as well. flat section across the high-ri high-rise. you'll find flashing lights. i'll let you know if they have to block any lanes, it could be a travel spot. east shore drive, bay bridge, green zone. top of the screen, east shore freeway, speeds dip. because of the volume towards the bay bridge toll plaza,

we continue to have the laser san jose with a hot spot at mckee.e continue. welcome to the farm of jack. there's a curly fry tree. and a chopper out back. there's a barn full of buns. and a thing you gotta try. a critter that makes burgers with bacon inside. boooorrrk- it's beef and pork! get bacon in your burger. jack's new bacon insider has a juicy beef patty with bacon mixed right into it, plus bacon strips and bacon mayo on a new gourmet brioche bun. boooorrrk - it's beef and pork! get bacon in your burger. moooiiink. >> welcome back. let's get some information on the hot spots. >> first, let's just look a what is going on. we're already picking up slow traffic for the east bay ride when highway 4 in the westbound direction. this seems to be a new pattern due to the construction. we still have traffic because so much traffic is getting through. there is an accident on 880 that is affecting your ride on both directions. >> 101, the northbound direction, a second accident in the morning. we are >> satellite and radar shows traffic moving again. w

michael mckee and olivia stern are joining me. scarlet fu will appear this afternoon but will return tomorrow. if she can make it through the snow. >> hopefully, the roads will be plowed by then. >i got in ok. let's get over to the economic brief. japanese real wages fell to a global recession low of 2009 and a 16 year low. atalso had economic data 7:00 this morning, mba mortgage applications. adp employment numbers are out today. >> this will move the market. everyone is watching to see whether we will rebound from last month disappointing jobs report. >> i have not seen and adp report with this much focus in a year. >> we will watch that closely and that 10:00 a.m., we will get numbersnonmanufacturing and the earnings continues. after the bell, disney. first twitter public earnings report will be interesting to see as well. let's do a data check print it's a quiet market as we wait for the adp report. andres are at negative two a 10 year yield was up slightly yesterday. nymex crude is $96.97. vxx is at 21 off the ugliness of fri

michael mckee tells us how the drop in the employment rate leads to fed policy going forward.et's begin with peter cook in washington with the fallout from the january jobs report. good afternoon. >> it was not the report that the white house wanted to see, this was the report that was decidedly mixed on the u.s. economy, raising questions about the strength of the economy as we head into the new year. a complicates janet yellen's job, and it adds more fuel to the fire in the debate in washington. 113,000 jobs added, but well below the estimate of 180,000. the unemployment rate down to 6.6%, a five-year low. the administration highlighting some of the positive signs in this report, but also saying it makes the case for extending those emergency on implement benefits that have expired. >> we are making progress. this report showed about 47 consecutive month up in the air job growth. rateong-term on implement is still 2.3% will which is historically and a near high. we need to extend those benefits. clearly a blow to democrats who thought that the economy was ready to fly in 201

michael mckee has a special report on puerto rico's debt troubles. profit misshas gm's and challenges facing the new ceo. let's begin with peter cook in the latest setback for immigration reform. >> house speaker jon weiner delivered the news, putting another nail in the coffin of immigration reform. he said distrust among his members over the president's willingness to enforce the nation's immigration laws is making it difficult for him to move forward on an overhaul. he did not say it was dead entirely, but he made it clear it is on hold for now. the need made it clear for congress and administration to work together on the issue of immigration reform. it needs to get done. i will talk to my members on how to move forward, but the president will have to do his part as well. similaromments follow negative statements from senate minority leader mitch mcconnell earlier in the week, who called the differences irresolvable. john boehnery is under pressure from fellow republicans. the white house had a response, urging the speaker, and democrats and repu

our economics editor michael mckee has more details.s move on these numbers sometimes, only when it is off drastic -- of the estimates. >> i was looking at the numbers just before i came on louisburg radio -- bloomberg radio, and this is a little bit better news. olivia is little miss sunshine, but i can top that comes she is giving you the 20 city number, i'm giving the national number. the increase is not as much, 11.3% for the year of 2013, but is the best national performance since 2005. we are enterprise-level we saw in 2004. not so good on a seasonal adjusted, they went down .8%. the. of this together said we are starting to see a little but of a softening in home prices. they have gone down, the rate of increase has gone down. >> isn't that good though? so far, it depends on how far it goes down. we saw many increases in cities over the past year. they're the places we talk about him as everybody, las vegas for example, over 26% price increase last year. san francisco, san diego, los angeles, a lot of california living -- cities

that is michael mckee.se of you who want to continue watching her testimony, please go to bloomberg.com. when we come back, we'll will be talking about the fallout in arizona. what kind of price will the state pay for that bill the echo opponent save would've allowed discrimination against gays and lesbians. it was vetoed. the legislature to get pretty far. ♪ .> veto that is what jan brewer did to the controversial anti-gay bill that drew opposition from everywhere from apple all the way to mitt romney. the measure would've allowed business owners to refuse service based on their own religious police. this is what the governor had to say. >> i have not heard of one example in arizona where a business owner's religious liberty has been violated. poorly worded and can result in negative consequences. , ioing all of the arguments have vetoed senate bill 1062. >> business leaders, sports leagues and others widely opposed the bill. so did many politicians. john mccain included. , butill has been vetoed damage ha

i want to turn to mike mckee, we are talking about benchmark revisions.saw a chart that goes back through the year, talk to us about what this is. this is a different kind of nonfarm payrolls number in terms of importance. >> 2 revisions, went to the establishment survey, which is companies. they look at tax records. they found that there were roughly 274,000 fewer jobs for the past year that ended last march then we have bought. that gets factored in. the logic, mess of they used to count household people as employed by opposed to companies. those people were moved into the labor force as company workers, that adds a lot. you get a higher level of employment over the past year, but not because more people were employed. just accounting. other changes to the population estimate. last year, this was a huge deal. the population estimate was raised significantly. this year, not all that much. not going to affect the unemployment rate, the participation rate. >> what do you think richard? you thought 140,000. >> i was surprised at the construction number. >>

olivia sterns is watching the into the third week, and michael mckee looks at the correlation between the weather and the feds tapering process. those stories and a moment, but first the latest on ukraine. and opposition leaders have signed an agreement meant to defuse the three-month elliptical crisis that includes the following. early presidential elections, and a return to the 2004 constitution. that is a move that would curb the president powers in favor of parliament. the peace deal was brokered in all-night talks in the capital of kiev. that needs to win the support of the protesters on the streets. at least 77 protesters and police were killed in the violence in key of this week. week.v this will look ahead to the g 20 meetings this week in sydney. that is coming up but 2:30 p.m. new york time here on bottom line. negotiators meeting in vienna this week did find some common ground. now on the phone, are we and are closer to a final deal right now? is ashink where we are much as anyone could've expected within this first week of talks toward a comprehensive deal. what these six

michael mckee has a reality check on this.say, look, the high price of this isn't going to create jobs. maybe another reason we will see income inequality grow even bigger. >> julianna was just talking about the whatsapp generation. that is what we are seeing across the board in tech. small tech startup firms get a lot of publicity and make a lot of money for a very few people. but as robert rice, former labor secretary, points of this week, they are not doing a lot for the overall economy. facebook shows up in the middle of the s&p 500 with a huge market cap now. look at the difference between them and the other companies around the entrance of the number of employees could only 6000 employees. there is not wealth there to spread. facebook is the poster child. this is not just whatsapp or facebook. it is tech in general. job growth in tech is very anemic. over the past year, only a few thousand jobs created in the united states. not like the old days when you can go into a manufacturing job and get a new -- a middle-class lif

mckee with the president of st. louis fed.elas, smart on economics. >> let's get the report. let's to the traditional pairs. a little bit stronger euro, weaker yen. the commodities do better here. there is our 4x report. >> aig chairman steve miller, the turnaround kid joins us. ♪ . . >> this is "bloomberg surveillance." >> boehner abandons republicans. as the speaker raises the debt ceiling, the republican base is demoralized. the president and first lady was to party on the south lawn. the president of france attends. and we speak to the turnaround kid on not detroit, but puerto rico. good morning. this is "bloomberg surveillance ." we are live from our headquarters in new york. it is lincoln's birthday. i am tom keene. joining me, scarlet fu and adam johnson. our guest this hour, we are honored to bring you steve aig chairman, which hardly describes his role for american industry. steve miller this entire hour on one american industry and our economy needs as well. let's get briefed on the morning. here is adam johnson. >>

it's also a little sluggish northbound 101 just past that julian/mckee exit.nes blocked no accidents or anything just your usual slowdowns coming into san jose. 280 everything looks good nothing there, moving at the speed limit this morning. and if you are traveling along the peninsula, northbound and southbound 101, actually looks great all the way down into san bruno if you are passing sfo. silicon valley commute also nice and quiet, you're obviously getting the trend no big hot spots right now. no major accidents. we saw a couple of minor fender- benders when we first got in the door but for now everything is pretty good. typical commute through the altamont pass and livermore valley. that's very normal for this time of the morning. 22 minutes between there and here the dublin interchange. headlights westbound once you get past 680 though traffic improves by the castro valley y. highway 4 this is actually "friday light" just a touch of slow traffic right now passing "a" street. and bart has 47 trains all on time. if you have any questions about your morning

they have been working with her for about 20 years in the fed. >> thank you, michael mckee. go to our chief washington correspondent peter cook, where the senate is taking up the debt ceiling extension plan. >> good afternoon. the boat is taking place right now on the senate floor. you have a procedural vote that should make or break this entire issue, whether we have a debt ceiling crisis, or whether the issue is taken off the table until march 2015 at the earliest. a procedural move to take up the house bill that passed yesterday with just a handful of republicans, but enough to get it over the finish line in the house. they need 60 votes here, which means democrats need at least five or publicans to join them. mark kirk of illinois said that he would be prepared to vote yes on cloture to clear the legislation onto a final vote. the question is if there are four more republicans willing to join him. the idea is that there will and we will avert this crisis. names to watch, johnnyrk, susan collins, isakson, and bob corker, all in the past have been willing to break with lea

economics editor michael mckee examines ukraine's financial situation.egan hughes explains why the contractor for maryland's health-care website has been fired. we begin with julianna goldman and a preview of president obama's manufacturing initiative. >> good afternoon. that's right. later this afternoon, president obama is going to be unveiling two new manufacturing hub scum also fulfilling a promise from his 2013 state of the union. these manufacturing hub's will be led by the pentagon and are being built just outside of detroit and also in the presence hometown of chicago, will annoy come of partnering with a number of companies. 41 to be exact. including boeing, lockheed martin, honeywell, general electric and caterpillar. it has also been a busy day at the white house. earlier today, president obama met for the first time since the end of 2012 with house speaker john boehner. a pretty broad and somewhat vague -- they met for an hour in ae oval office and covered range of issues coming clean manufacturing, trade promotion authority, and here to disc

michael mckee thinks he will be gentle on chairman ellen. am not sure. >> wall street is so excited. let's see if he will be a puppeteer. when we come back, a game changer in the nfl. we're talking about pro football getting its first openly gay player. we will talk about it when we come back. you're watching "market makers." you can watch all of our interviews on apple tv. it ran new experience featuring live, streaming, on-demand videos. we are on apple. ♪ >> good morning. "market makers" this morning. the vix 15.52 -- sonofi is a giant pharmaceutical company. they have their first profit increase in four years. investors wanted to see more growth. some say they are lowering expectations. officerief executive spend most of dabo swinney stephanie ruhle. he joins us now on set. your here with a visit from your president hollande. what i find amazing -- we have not seen a french president and america in 18 years. this stems pay. >> this is the first state visit. there are various types of visits. this is the highest level. obviously, he has b

michael mckee tells us more about what we can expect.afternoon. >> i think they're going to be fairly polite. it is her first hearing after all, as the new fed chair will stop there -- the new fed chair. thee may be questions about direction of the economy. we were supposed to have a better 2014 than we have been having. job growth has been disappointing and people want to know why that is and we have seen housing fallback. and manufacturing numbers have coming a bit weaker. the fed offered its forecast in december and was saying a three percent growth rate this year. capitol hill will be asking if we will be able to get there. >> and she is expected to say that policymakers will continue with the tapered? >> yes, it is on track at this point because when they said they were going to taper, the numbers from then until now have gotten better in terms of hiring and participation rates. they are a little bit better than they were, so the fed can keep going with that, because they want to get out of this business. the balance sheet is over f

maybe a little sluggish as you approach the julianne mckee. 115 is backed up.minutes at least to get you onto the span. here is a live look at the golden gate bridge. four southbound lanes open in the commute direction. no delay this is morning. after the derailment on friday evening by the concord bart station, everything is back to normal. service is all back. all trains are on time. good news. remember, kpix traffic is always here and only at kpix.com. >> thank you. >>> lots of sunshine over the weekend. i think that will continue today. maybe slightly cooler than yesterday but spring-like conditions outside will continue it looks like. but we have major changes on the why. right now high pressure overhead. a couple patches of fog toward the coastline and north bay. toward the afternoon mostly sunny skies with very mild temperatures. a couple patches of fog out toward the beaches. then stormy weather likely to make a return toward the middle of the week and going into the weekend. enjoy the sunshine today. we have that off the coastline starting to work its

of the into the economy island, michael mckee.ing i do not get about puerto rico? >> most people do not realize how indebted they are and how much that could influence the overall muni market and mom and pop because they have a lot of investments they do not know about. some people say this could be the next greece. it is possible. they have 70 billion in debt him as you mentioned, and they cannot pay it at this point. the island has been in recession for eight years. the question is, can they continue to borrow to fill the whole? which is what they have been doing. they keep borrowing and expanding the amount they owe. 650 million dollars is the deficit this year. >> you and i got to scathing e-mails saying the market is wrong on this. scathing e-mails saying the market is wrong on this. >> you have to read between the lines. they can continue to pay the debt. you look at the yield and trading at emerging-market levels, about 400 at the basis point spread to normal aaa ratedmunis. -- aaa rated munis. so many bond funds, three qua

---el siniestro se report alrededor de las 4 de la tarde en la calle "dalia", cerca de la "mckee" y laopista 680. ---parte de una vivienda result daÑada, al igual que la cochera. ---3 vehiculos quedaron completamente destrudos. ---nadie result herido. blanca ---en el area de la bahia, aumenta el uso de los populares "carriles express"... pero en vez de ayudar, ahora retrasan a los conductores... take 2 box ---angel ayllon nos cuenta por que, adelante angel con la informacion.. ;01 ;16 ;58 1;22 1;54 trt:2;16 en principio, si usted queria ir mas rapido, tenia que 1;22 1;54 trt:2;16 en principio, si usted queria ir mas rapido, tenia que pagar... pero ahora ni el dinero ayuda mucho a que llegue a tiempo si salio tarde a su compromiso... supuestamente la adjudicacion de los llamados "carriles express" que iniciaron en las autopistas 237 y 880 donde usted, si viaja solo, puede usar el servicio de carpool en las horas adjudicadas pagando una tarifa por medio del "fastrak", ayudaria a quienes tienen prisa, pero ha sido tal la demanda que la congestion aumenta y ya ni quienes pagan, ni los que

>> plenty of commentary and analysis after we hear from janet yellen, thank you, michael mckee.shaking this morning, much donald ceo -- the vietnam,s ceo is in opening up their first restaurant in the country. hour thehe last same-store sales rose 1.2%, topping analyst estimates as its overseas is this improves. offsetting slowdown in north america. thompson, whoith talks about extension into another area, new markets like africa. >> africa is a marketplace. we do not have a lot of presence across the gotten it but but we're looking at the opportunities that africa can give to mcdonald's. weortunities markets, and are in an ongoing dialogue to build appropriate relationships. we are reviewing the other criteria we need to be viable, so africa will be a part of a future growth strategy for mcdonald's. -- willl be determining be the determiner. some formries have of infrastructure, but we need to make sure we have the appropriate supply chains and infrastructure to provide the quality,e want to -- consistency, and supply we want to. ceo, it has been a pretty rough week, we're talk

it happened near the intersection of north white and mckee roads. take a look at shsurveillance video. you can see the suspect in the hooded sweatshirt before he pulled out a silver gun and demanded money from the clerk. he made it out with some cash but police are not saying how much. >> neighbors and police are teaming up to combat a new burglary trend in one neighborhood. our cameras were rolling when police nabbed three suspects they say hit a house on west view drive in the evergreen neighborhood. one of the men had to be taken to the hospital after being bitten by a police dog. neighbors say they heard the suspects breaking into a house and called police who got there in time. in this neighborhood alone there are 176 burglaries in the past three months. many of those are what officers call kick-ins where a suspect kicks in a door to get inside. >> the family of two santa cruz police officers who died last year in the line of duty will attend a special ceremony in their honor tonight. tomorrow marks one year since lauren baker and elizabeth but

mckee who when it's listed the dogs just right side of what's his name initially wanted to take tanner yesterday american accents. that's little wooden yes i think is that a kidnapping case the knives to try to teach athletes at the silly pics. shaken. it's a gem. i didn't steal it beyond that. we all go in and out of the vote and the russians did. editor of the guests building costs nothing. there's about to change every heritage the chain is it that the kids in place of stops he's very good licking isn't a nice little lady a wide view in the saucy them volunteer at the front of people don't like. the nyt besides everyone a happy valentine's steal bases. it's nice to be doing anything of it so we allowed to take on site states he wants to set its sights but the kid likes of the now back in the uk i had the seven songs i heard that instead of the games here. i want to do with them you are right lens with me and i'm innocent happy valentines to my fiance mosque and state. low flying boat and brought not just for the forty thieves are well under was busy up to the mounting cost of teams

we are caught up on me with that we've got more news to come after shore break in play or watch mckee international the eye. i did sheesh. it's me again. when that problem was that. we all sang night at the traffic light thingy it really helped me to do with them. what can be. i know. your aunties today however research. a the new the all welcome after watching art the international now that i may be running out for a russian pilot jailed in the us. this is according to his lawyers constantine media angle has been refused a vital medical help. despite being at that store and even now a top russian officials are urging washington to intervene in such easy alexia fifty reports. for us to receive twenty years in prison in the united states for a crime he never commented on the american soil. now what has gone from bad to worse for russian pilot concerned union action the arrow river colony in the morning and told me he felt very sick and then he'd be lucky to survive until monday. he seems to be having heart attack because he told me he was suffocating experiencing heart pain kills almos

economist at ubs and of course mike mckee, our own chief economist. we take you now to the other side of the world. in the ukraine, there is a deal to end the week of deadly violence in the apple city of kiev. the president and opposition leaders have agreed to hold early elections will stop at a few minutes ago, the ukraine parliament voted unanimously to amend the prosecution back to the 2004 standards. bloomberg correspondent is our man on the ground there. tell us first what this means, what do these concessions mean as far as for example amending the cause of tuition? -- amending the constitution? and sound like we are having technical issues there with ilya on the phone, but let me walk you through what is going on. we have eu leaders, this is the first time that high level eu leaders have really come into these negotiations. that is important because of course we reported there is a truce a couple of days ago, and six or seven hours later, another 50 people were dead. you need eu help in there, and you need russians. >> the question becomes wha

michael mckee, our economics editor.on "in the loop turco tomorrow the lakers secretary joins us -- labor secretary joins us to talk about the jobs report. on the markets is next. ♪ >> bloomberg television is on the markets. we are 30 minutes into the start of u.s. trading. is showing modest gains. at the best levels of the sessions after creating in a very tight range yesterday. the best performers are up 1.5%. utilities are little changed. within the dow industrial, 25 stocks are gaining, for our down, and one is unchanged. a lot of health related names are leading. broad communications, little change. -- the best performer of the three major u.s. benchmarks this morning. we're keeping an i on twitter. it is getting a lot of attention -- dropping 20% because of slowing user growth. as for treasuries, they're falling for third day. yields are moving higher. jobless claims fell last week. that was the first decline in three weeks. it does set us up for the government january jobs report tomorrow. the consensus among econ

louis fed and our economics editor, michael mckee is joining us as well.o get your views on how things are going to turn out by the end of the year. janet yellen basically told us that things are status quo. , couple of bad jobs reports but tapering is underway. how do you reconcile what seems to be a contradiction -- the fed is pulling back, still stimulate in, but stimulating less and saying at the same time there is a lot more to do? >> i think she had it right in the testimony. we are buying. we are buying a lot of bonds. not quite as many as in december, but we are buying a lot. the economy is improving and things are getting better. if you look at fourth quarter jobs, about 195,000 a month, including the bad december report. down to six is point six percent. gdp growth in the second half of last year. we are looking at a stronger economy. i think we have momentum for 2014. i am not seen anything so far to dissuade me from that. >> is it fair to look at the jobs number as a data point when it does not factor in all of those jobs? participation has bee

. >> mike mckee. on a programming note, janet yellen will be back on capitol hill tomorrow. and look at gears the latest in ukraine. demonstrators are back in independence square. their elohimasked ukrainians tollow gather again. they want a government in place by tomorrow. activist fought with other protesters. they were waving ukrainian and -- five.iday they're calling for local elections. the bbc is reporting that ousted ukrainian president viktor which which -- victory" has been placed on an international wanted list. they want to send into the international criminal court in the hate. we have more on ukraine's efforts to rebuild its government. coming up, retailers post mixed results on the earnings front. shares are heading higher. we will take a look at what is driving that rally. ♪ >> the u.s. supreme court ruled today that class action lawsuit from investors who lost billions in a massive ponzi scheme can go forward. the decision is a lost for individuals and law firm companies who allegedly aided the fraud. sanford was sentenced to 120 -- in prison.ent byy supposed

. >> asked mckee spoke to me -- perkins spoke exclusively on "bloomberg west" where he dreaded the commentsrich being compared to the nazis and jews. trulia reported earnings. earnings and revenue was up. the ceo is here in studio. we'll get to the inequality thing in a minute. let's talk about earnings. give me the highlights. >> significant growth in our core market base based on revenues. it is up more than 100%. it is a record. it is growing rapidly. 90% of of our growth in mobile. the big announcement was the strategic marketing campaign focusing on how to scale the awareness and engagement of trulia. >> you are hiring a cmo. >> yep. we announced a cmo has joint as to drive the marketing campaign and awareness. we think of it as the evolution of our business. we scaled our audience. now is opportunity to expand that. >> how do changes in the market effective business? if the prices in san francisco are higher than ever before, what does that mean for you guys? >> we look at it as market opportunity. that is home prices and home sales. you look over the last year in 2013. prices were up

economics editor michael mckee examines ukraine's financial situation.explains why the contractor for maryland's health-care website has

mike mckee, economics editor. sam zell is standing by.arkets were overpriced going into 2014 good why did you think that? activityk the economic did not correlate to the price of the stock market. i don't remember how much it was of last year -- 30%. we did not see -- i operate a lot of companies and we did not see a lot of come by yeah happening. it is prettynk healthy to see this kind of decline? >> i don't think declined to ever healthy. us inalance is what keeps place. and when we get out of balance, like subprime loans or whatever, it is pretty disastrous. so, the market has to keep balancing back and forth, conflicting currents are relevant. i think the market in 2014 is a lot more likely to reflect what happens in 2014 then whether or not it was up or down in january. >> but doesn't make you nervous at all -- i know not much makes you nervous at all, but seeing how volatile the markets have been over the last few weeks, doesn't make you more nervous americans will look at this and fullback and perhaps may not be buying as much anym

michael mckee and olivia stern are joining me. afternoon but will return tomorrow. if she can make it through the snow. >> hopefully, the roads will be plowed by then. >i got in ok. let's get over to the economic brief. japanese real wages fell to a global recession low of 2009 and a 16 year low. atalso had economic data 7:00 this morning, mba mortgage applications. adp employment numbers are out today. >>

economics editor michael mckee is digging into puerto rico's and economy all day on bloomberg televisiono get to the bottom of what is happening and what is at risk. >> the problem is this could seriously damage the bond market because almost two thirds of bond funds own puerto rico debt and a lot of people do not know it is in there. the hedge funds can take advantage of it but the average will not be able to, so they could be facing a possibility having a lot of their portfolio default. >> mike, what the policymakers do to help puerto rico? obviously, one of the comparisons between puerto rico and greece is the value of the currency. >> there is not a lot of good options except rate for time and take steps to fundamentally improve the economy, which the current administration has been doing. they have raised taxes significantly, they are trying to stimulate growth and cut spending as much as they possibly can, which of course is always politically difficult. bringing down their deficits, while at the same time hoping that the market hangs in there for them. >> is congress therir imf? f

economics editor mike mckee explains the fine print. >> the headline number for the establishment survey, but the number of people who got jobs in the household survey was high, and the reason the unemployment rate went down is because more people got jobs. not because more people dropped out of the labor force. >> that is the first time we've seen that reversed? >> no, it happens quite frequently, but it is the first time in a couple of months that we as in that situation. we have been talking about the dismal reason for unemployment. in this case, it was a good reason. >> is it good enough or bad enough to get the fed to change its taper strategy? pimco's mark kiesel spoke to betty liu. >> the numbers are not so strong that they would be afraid people are moving too fast, but they were strong enough that the fed will be on hold for a while in terms of raising rates. it should be relatively good for the bond market. >> you feel that this allows the fed to stay essentially on autopilot whether monetary policy? >> yeah, basically we think that the fed is going to deemphasize the unemploym

for more, let's welcome westpa s 's senior economist and michael mckee. let's start with you. be a weather impact. and you have seasonal adjustments that we need to think about. the spread is pretty big, isn't it? >> it is enormous. the working assumption on wall street is that december's payroll figures were just wrong. the bad weather cap so many people at home. the numbers could not possibly be right. a lot of people are expecting today that will be revised away. and january will refer to last fall's trend -- hiring. we have seen a lot of soft data in other parts of the economy, housing and manufacturing data. if you think december was dead, generate was worse. the coldest winter months and three years and four times the normal amount of snow. we could see a weather effects for this month. nobody knows. the other big question is what happens with the unemployment rate, given the speed with which it is declining these think the economy was on fire. but mostly it is people leaving the labor force. there is a big debate about whether or not it is baby boomers retiring or peopl

the south bay freeway, a gang is slow and julienne mckee.lienne m >> the father of a trans and gender woman who died in a struggle with police officer last year is when the city of berkeley. this is a federal civil-rights lawsuit, accusing officers of causing kayla moore's death by using excessive force. more lost consciousness after a struggle with police and an apartment complex last february. in the suit, her father says that she had a history of paranoid schizophrenia and there please restraint her to the point where she could no longer breathe. the coroner determine that she died from an acute combined a drug intoxication and that obesity an enlarged heart contributed to her death. the city has now responded to the suit. >> the bay area's got nothing on southern california when it comes to freeway congestion spirit that is the word from caltran this morning. i-5 in los angeles county is the worst when it comes to congestion. caltrans figured that, in 2012 alone, vehicles spent a cumulative 6.6 million extra hours in heavy congestion on

omics editor michael mckee is digging i o puerto rico's and economy all day on bloombel day loomday tedavito get to the om of what is happening ands happen what is k.what is whats whats >> therobl s this could s th cou y damage the bony damage the bony dama theononon because st two third bond f wn puerto rico debt and a lot of ane do not know it is in it i the fund thn takendthn ndthn thn vantage of ibut the averageage will not be able to, no be be could be facing a possibilitya ita hang a lot of thngpo lfolio lfolio default. >> mike, what the policymakersrs do to he uerto rico?rto co? ouy, one of thouy, one of th comparisons between puerto rico and greece is the value of the t currency.rrency >> there is t a lot of good options except pray for exme and take s fundamentally improve the economy, which the which w chrren wministration h wmieen doing. they have raised taxes ificantly, they are trying they ng they ng thela h and cut spending as much as they possibly an, ich of course isrse always p icalalwaifficult.alal ging down their gingcits whilat same timeat s s that the market hangs in t

even past mckee exit where it tends to bottleneck sometimes.ere is a live look at your sensors and drive times westbound 580. also east shore clear. here's lawrence. >> all right elizabeth, little rain over the weekend. best storm of the season by far. some places over an inch, inch and a half along the coastline. we're watching the storm system wind down and head into southern california. we're going to get a break now but maybe a chance of more storms on the horizon. the pattern looks favorable. getting more rain in the bay area. starting out with cloudy skies and patchy fog. cool temperatures by the afternoon and running below normal and more storms lining up towards the end of the week. low pressure around town, southern california. high pressure builds in briefly. the next storm off the coastline paying a visit to the bay area. you'll find sunshine. 58 degrees in sacramento. couple of snow flakes in lake tahoe. looks like tomorrow a few more clouds begin to fill skies staying dry and then wednesday it looks like a leap of chance with more

that is the story this morning: standing water and flooding so low spinouts, and an accident at mckee and a big rig hit debris southbound at vargas and northbound is slowing looking at that with a couple of accidents westbound 580, one in the westbound direction at greenville and one eastbound a solo spinout. it is nasty. take extra caution. >>> thank you. we go to the east bay where people should watch out for hydroplaning and bonding on the roads means increased danger of spinning out if you are drying too fast. we have seen lots of spinouts. amy hollyfield is in pittsburg with more. amy? >> to give you an idea of how much rain is coming down, this is a flooded street and you cannot even see the curb. it is up over the sidewalk and lots of rain coming down in the east bay and this just from overnight if you can imagine. we were driving if this rain as it was coming down and it was intense. there was hydroplaning going on and you had to use both hands on the wheel and it was one of those rains where the windshield wiper can barley -- barely keep up. in pittsburg they have in trees an

this two-alarm fire broke out about 4:00 this afternoon near mckee road and 680. the flames burned the carport and part of that house. the fire is now out, but firefighters are still on the scene. no word yet on what caused this fire. >>> new at 6:00, a live look at 880 in fremont. traffic appears to be moving somewhat okay this is near the so-called hot lanes, the express lanes designed to ease congestion if drivers are willing to pay but they are so popular sometimes they are just as congested as other lanes. cheryl hurd joins us and everybody agrees it's a good idea but not working as planned. what happens now? >> reporter: well, they will get more lanes but raj, what wouldn't want to pay to get out of this traffic? i don't know if you can see but it's bumper to bumper northbound on 880. nearly 300 miles of toll lanes are coming to the bay area, but for some people that won't be too soon. i found out today people are willing to pay to get where they want to go. >> many times i'm by myself and of course, bumper to bumper and you have an appointment and you don't

slamming down from 680 to allen rock mckee off-ramp and letting up. we see sheen on the roadway.n-ramp doesn't look wet but what might be happening on the windshield might be different than what we're seeing on the roadway. back to the maps, that section of 101, also i saw slowing, a blob of traffic heading north up in toward the saratoga area. things are starting to smooth out. watch 87 for slowing, might kick in early. proved to be lighter yesterday. see how today shakes out with the school districts on that ski break or winter break. here towards mission boulevard. overnight roadway has that closed between walnut stream and 880. traffic control in the area, reroute, look for vta. dublin, we'll end with the shot. cars drive by, that wart, there it goes, kicks up, rooster tailing. water on the roadway coming in from dublin to livermore. >>> breaking news. firefighters have knocked down two-alarm fire at a vacant home in fremont. live look at the scene. you see paramedics and the fire crew still there. this is near mission and sullivan underpass. the second story completely colla

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and northbound 101 coming into san jose, obviously just a few brake lights now approaching mckee but280 and the guadalupe parkway still both look good. remember kcbs when you hit the roads at 106.9 fm or 740-am. here's lawrence. >>> big changes coming our way, elizabeth, as we have high pressure overhead today. clouds starting to increase as we are seeing low clouds and fog this morning. rain clouds not far away. you see those just off the coastline coastline. they are going to hold off for the day so the better part of the day just some increasing clouds into the afternoon. the temperatures should still stay mild in spots, 60s and low 70s just slightly cooler and rain and wind heavy at times expected for tomorrow. that ridge of high pressure beginning to move just a little further to the east. so we have seen an increase in low clouds and fog. another 24 hours before we have to start worrying about rain moving in and then looks like it's going to pick up toward the middle of the day. around the state good day to travel. 79 fresno. 64 yosemite. 74 in redding with mostly sunny skies.

a little sluggish approaching mckee but overall drive times are slightly down than we typically see atme of the morning. mass transit all on time except vta. there was a stabbing overnight in downtown san jose. still got some street closures around there. it has been impacting vta bus and light rail service. they are hoping to get back to normal by 7:00. heads up there. remember to tune to kcbs radio 740-am and 106.9-fm once you hit the road. that's your latest traffic. here's lawrence. >>> yeah, a lot of fog around the bay area this morning. visibilities down to a quarter mile now in livermore. half mile in santa rosa around the rest of the bay area. cloudy this morning, fog the major concern. ware seeing some delays no at sfo. more rain looks like for the whole bay area saturday night into sunday. hazy into the afternoon with passing clouds and looks like most of the rain is going to read to the north with that jet stream there. delays at sfo up to about 45 minutes. and that's because we are seeing the low clouds and the fog out there this morning. i think around the country of cours

shut down all lanes of the guadalupe parkway to tailor all lanes of 680 north bound are blocked ed mckeehere is also a mudslide that has been reported. this is just a two-lane road but for those of you who uses your in trouble if you use this. >> continuing our team coverage on the storm kron4 jackie sissel is live in san rafael with more. >> we are getting a little bit lucky is southbound 101 going through downtown san rafael. you will see that there is mist coming off roadway. the roadways are still saturated with standing water. to george just explain to you all of the incidents but a word of caution we have an awful lot of rain so there is still a lot unsteady reutesteady water.s still remaining and we should take your time and be patient. you should be careful because there is a lot of standing water not only on the freeway but surface streets as well. >> >> but we have asked you to send in your rain foes. if you are ou in the wet pictures. if you are out in the wet weather today, send us your pictures. we will post them on our website at kron4.com >> a group of current and former s

michael mckee will join us for that interview. number of other topics across shareholder activism and we will take a trip to the oscars. they are this sunday. scarlet fu is ramped up for a. we're going to be looking at getting me tan ready for the oscars. >> the weather has not been great, you not having a tan that we need. time to get out to the west coast. >> thank you very much. euro zone inflation has held steady at 0.8%. let's get some analysis. we are joined from hong kong. mario draghi is looking at a number this morning that has come through with inflation in the euro zone of .8. taking that as being good news, but it is still a fairly dismal number. >> i think this number is a reflection of the week economic recovery in europe. it is too low for comfort. the ecb should be ready to do thisver it takes to avoid from getting into real inflation territory at these risks increase in the future. now, we can do nothing. is that the message? >> i think the monetary policy needs to continue being supportive in terms of liquidity l

it happened at the store on north white road near the intersection of mckee road.e a look at this. you can see the suspect in a hooded sweatshirt walk through the door before he pulled out a silver handgun and demanded money from the clerk. he made it out with some cash but police are not saying how much. >> a possible resolution this morning in the fight between casino matrix and the city of san jose. the casino has put a 90-day hold on its lawsuit against the city, casino matrix filed suit back when san jose blocked its plans for a high roller card room on the eighth floor of the building. police said surprise inspections on the eighth floor wouldn't be much of a surprise because it would take so much time to get up there. the council recently changed tactics asking city regulators to allow casino matrix to open that gambling floor so the lawsuit is off. so far no final decision, though, has been made either way. >> santa clara university employees will lose their elective abortion health care coverage at the start of next year. the "mercury news" reports that th

the economics editor michael mckee says a big reason the chill has settled on the economy. will it be next month? >> you do not want to know. natural gas in particular, we have been freezing. trying to heat our homes and it is costing us a fortune. in the the increase amount of natural gas we are using at the same time we see a rise in price. we see it reflect where the storms have been all across the country except the west. the only place where natural gas consumption is going down because they did not have as much snow there. everyone else, it is been a three percent, almost four percent in terms of usage and costs. that has an effect. take a look at what electricity is costing. you add consumption to price and you get the costs and that cost is up almost four percent over the same time last year. is just a one-month change. and imagine what it would be like for the entire winter. in new york, you are one of the worst off. take a look at what the typical new yorker has been paying, an additional $388 in their january bill. it is not just new york. we went to the midwest.

president happened on north white road near mckee. take a look at this video.ee the suspect walking in the door, a hooded sweatshirt on before he pulled out a silver handgun and demanded money from the clerk. he made it out of the store with cash but police are not saying how much. >> a possible resolution this morning in the fight between casino matrix and the city of san jose. the city has put a 90-day hold on its lawsuit against the city, casino matrix filed the suit when san jose blocked its plans for a high roller card room on the eighth floor. police said surprise inspections on the eighth floor wouldn't be much of a surprise. said it would take so long to get there. the council changed tactics, asking city regulators to go ahead and allow casino matrix to open that floor by the end of april so. far no final decision has been made. >>> the winter olympics in sochi have come and gone. and the morning a local olympian is back to being a regular high school student here in the bay area. we're talking about polina edmunds t 15-year-old figure skater who atten