michael mckee previews president obama's move to expand overtime pay. we begin with peter cook on capitol hill. and stanley fischer's confirmation hearing. good afternoon. did he receive a warm welcome he did.ho >> there is no doubt that he will be confirmed. by the full senate. senators today particularly impressed with his resume. they have been since the president first nominated him. he is a legend in the economic circle. as centralears governor for the bank of israel -- and pressing senators appear on capitol hill. it is his resume that grew the most intense questions today. his time at citigroup. he spent three years with the bank on wall street and he was questioned about that by elizabeth warren. of wallo big fan street. he defended his time at citigroup saying it made him a better central banker and regulator. >> without that experience, i not have seen the inside of the bank. i thought that experience was extremely valuable. toughestas about the moment for fischer. on the larger subject of monetary policy and the economy, fisher and the other

michael mckee will be staying with me, as well alix steel.e will check the top headlines on this wednesday. ♪ >> welcome back. this is "bottom line." i am mark crumpton in new york. the associated press is seeking troopsan seized control of the naval headquarters in crimea. they detained the ukrainian naval commander and blocked officials from traveling to the peninsula to diffuse tensions. ukraine's military, which is heavily outnumbered in crimea, has come under increased pressure. authorities investigating. missing malaysian jets are trying to retrieve deleted data on a flight simulator along into the pilot. the malaysian police chief says files containing records of simulations carried out on the program were deleted on february 3. the search for the plane in the south indian ocean is focusing on an area about the size of italy based on analysis of the planes fuel reserves. the u.s. has reached a $1.2 billion settlement with tell yota.death -- with to under the agreement, they admit it misled consumers by making deceptive statement about

i want to get inside with economics editor michael mckee because there was speculation they might cuterest rates. >> there was some speculation, but what analysts were saying is they are more likely to announce something that would stimulate the economy, push interest rates down, but not be an official in the senseot qe that we know it, but something similar outside of the bounds of traditional policy. alice were focused on ending the sterilization program. it sounds complicated, but here is what happened -- when central banks buy bonds from other banks to influence the money supply, they generally pay those banks cash, their local currency. that goes into the bank, increases the money supply, and it could increase lending. the european central bank does it differently. they bought all of these government bonds in 2010 to bring down yields one italian, spanish, and greek bond yields were soaring, but ever since then, they have been draining money from the system, taking money out not to increase the cash supply because they have a rule against monetizing debt and he did not want to be

michael mckee, thank you so much. he will join us in the neck hour as well from spring training. the red sox focus. a redckee looks great in sox shirt. >> more mike mckee and the next hour. also coming up, uncertainty and unrest taken their toll on emerging market currencies and the dollar dominate. our single best chart is next. ♪ >> good morning, everyone. "bloomberg surveillance." good monday morning. the president is in the netherlands. and del potrordam to the great international body, the hague, where the g-7 leaders will meet. a ukrainiantake out naval base, happening about 2:00 a.m. eastern time. the president greeting but that's. i'm tom keene. scarlet fu. our special cohost, brendan greeley from "bloomberg businessweek." >> we will give you the latest on malaysia. a development in the search of the missing malaysian airlines jet. the crew of a chinese military plane reported seeing objects floating in the water in the south indian ocean. the china state run news industry say the crew spotted two relatively big objects and smaller ones. it is possible the objects could be

almost 25% of the economy. >> michael mckee, thank you. some in congress wish that secretary of state kerry could have headed to ukraine promising more than just those loan guarantees, but also access to u.s. oil and gas supplies. peter cook has more on that part of the story. peter, the crisis in ukraine is adding new fuel to an ongoing energy debate here in the u.s.. >> a lot of new fuel to that debate. u.s. oil and gas industries are making aggressive pushes over the last couple of years for expanding exports of u.s. oil and gas, given the big boom here in the net states. ukraine prices is bolstering their case. ukraine relies on russia much force energy. russia has used that gas as a offon in the past. they cut the price, remain a threat in the standoff. shale boom in the u.s. means alternative gas. they want to lift limits on u.s. exports. and speed up approval of liquefied u.s. gas exports. chorus,ner joining the saying in a statement, the u.s. department of energy excruciatingly slower approval process accounts to a de facto ban on

michael mckee is joining me shortly.

our economics editor michael mckee has reviewed reporting all day from florida where he is finding taxpayerse reached their limit. they may be getting there. this is the spring home of the minnesota twins. it is a bit smaller than the regular season version, but it is nice as you can find anywhere. the question is how many more of these can you build? once teams were associated with towns, but over the years the great major league map has been redrawn over and over again as teams race to take advantage of subsidies offered by towns that what major league is ball. they say that the deemed ring tourist and the tourist spring cash. economist say that is not the best way to build your economy. >> we build that for them, and they left fort lauderdale, so what you want to be able to do is he that fort lauderdale shrinks, and tampa gross -- grows as a budget of the teams moving. >> there are signs of the communities are beginning to realize that could happen to them here in fort myers. they have turned down a third team because they did not want to pay for the additional upgrades to the stadium tha

we're thrilled to bring the michael mckee. we staggered to 8:30. nobody expected any kind of rate cut. there was an outside chance, but they did not. they stated zero. what does mario draghi dale? -- do? >>they might introduce extraordinary policy. >> away from the announcement we just had? but something that would boost the economy a little bit. the most talked about is ending the sterilization of the securities market program. that sounds very concentrated. in 2010, your member, the interest rates on bonds or skyrocketing. the bank spot those bonds. the bonds earned interest themselves. that increased the money supply. they take that money out. >> sterilize it. >> there's a feeling that they might end that sterilization and increase the money supply to put pressure. >> after the success that mario draghi has had, will there be a more conservative voice? >> it is still a dominated institution. the interesting thing is that the bank has signed on. they think that would be ok. colors the geopolitics anything that we'll hear from mario draghi coming

michael mckee, eric? >> it has to do with citigroup.merly known as the capital comprehensive analysis conducted under the dodd frank act. citigroup failed. citigroup, as every bank did, asked the fed for permission to return more capital to shareholders, an increase in its dividend, currently a penny for the larger buyback. citigroup rejected the fed on a qualitative basis. qualitative basis? >> there are two bases under which the fed qualifies the bank. the quantitative basis, the numbers-based analysis of the bank's capital with zillions see, let's say, and a qualitative that takes into consideration things like internal controls and the bank's ability to identify risks. on that basis, citigroup failed. they will not be allowed to increase their dividend or buyback more stock. i am going to read you an excerpt of their comprehensive capital analysis and review report. the embargo on this was just lifted. i had a chance to see this in advance, which is why i have this prepared. practices with 6 -- with sufficient deficiencies included

thank you, michael mckee.a is banking on the sun tropical wind to attract tourists and power of the country. the prime minister and joins me to talk about his push for sustainable energy. that is coming up next. stay "in the loop." waffle taco.ll's they are treating us to breakfast. tom keene has his right there. just ahead on "in the loop." ♪ >> we have some breaking news for you -- earnings from gamestop. senior marcus corresponded julie hyman has the breakdown. >> gamestop has a split report. on the one hand, fourth quarter numbers were strong. comparable store sales were up, driven by the strength of x sales, butand xbo it is coming out with a cautious forecast for the full year, saying full-year earnings will ofe, but it leaves a short what analysts were anticipating, so shares are falling back a little bit in early trading this morning. >> thank you. a wind of change is sweeping through energy policy in the caribbean, and leading the charge, aruba, which has pledged to transition the island to 100% renew

michael mckee is joining us with more on retail sales. what will we learn tomorrow?> it's not what we are spending but where we are spending. when the weather warms, sooner or later, are people going to come back to the stores? the lousy winter has accelerated and already accelerating trend of dumping the mall for the mouse. we are shopping more and more online these days. that is hurting the brick-and-mortar retailers. in-store traffic is plunging since the middle of 2012. that has been going down according to shopper trac. just this month alone, sony, children's place, staples, dots, radioshack announced they were closing thousands of stores and if you're not going to the mall, you are not eating at the mall. e commerce data is a month behind and we will only learn about january sales tomorrow for online shopping but it made up 30% of december sales. it was 17% five years ago and it has gone up to 30%. will the numbers tell us what people are doing these days in terms of what they are buying? >> you just described my saturday afternoon -- going to the mall and head

alex deal in michael mckee. >> hitting an update from key of -- getting an update from kiev right nowlcote there right now. we had an update last hour telling us what he has been hearing. i know you're been on the ground doing reporting. , thefectively crimea peninsula and the south of the country is under russian control. that is the bottom line. there are about 6000 troops right now cooperating with the militia. they have surrounded the carini and -- up peninsula basis. presidentthe russian got permission from the parliament to deploy forces to the ukraine. however, they appeared before it some toived, leading wonder if the real appointment is yet to come? we just do not know. i spoke to the ukrainian prime minister a short time ago. he said russians are refusing bilateral negotiations and they think this is a longtime problem. they are mobilizing their military. i do not think they have any intention of really challenging .he russian army in crimea no shots have been fired yet. obviously, we have a standoff. >> from vladimir putin's , if the west cannot respond with economic sancti

i am economics editor michael mckee.he adp employment report for february comes out weaker than expected by a fair amount -- 139,000 jobs created, much lower than the 155,000 that had been forecasted, way below the trend. according to the folks at adp moody'sesinvestors -- investors.com, bad weather is responsible for most of this. were almost all in construction. that is not square with the weather issue. sense -- square with how you put that all together. the financial sector loses jobs, the weakest performance since 2011. is adp news for friday has been consistently overstating the amount of job compared the economy to what the labor department finds. we're expecting 154,000 jobs created overall in the month of february. this might cause people to knock that down a little bit. >> thank you, economics editor michael mckee. we are back with my guest host, roger altman, former deputy secretary, and republican secretary ron johnson. roger, let me start with you again on this jobs issue. it is a subject that you have both

michael mckee is on hand with the real deal. rate it down. it down.eak >> a reasonable news story with home sales. 4.6 million at dollar annual rate, barely lower than it was in january. five,ober we were in the so we have a long way to go. whatever the weather effect, it has been relatively steady for the past four months and we expect a big spring rebound. here, a drop in condo and co-op sales, 1.8%. single-family home sales, just .2 of 8%. one of the complaints about home sales in the past couple of months has been not enough homes for sale, so that may affect things. the other number we just got -- and here is some good news for people worried about the economy and the weather. february -6.3, and it comes in a positive numeral mind. it looks like overall the employment index is lower, but the overall index higher for the philadelphia fed. the general news is really good on the economy. for those who have been hoping for a we bound -- and rebound from the weather effects. >> we have bob shiller with us now for some reaction on the housing

michael mckee found a town in florida but has dropped out of the fight. it knows it cannot win. joins us live from fort myers, florida. >> we are home at the spring training home of the minnesota twins who carried the land o'lakes name a little too far. rain forced the cancellation of the game unfortunately. also a town that hosts the boston red sox. for years before coming here they trained in one of baseball's most storied small towns, winterhaven. you go to the ballpark now, and it is like visiting a ghost town. the park itself is falling apart. abandoned by the red sox and then the cleveland indians moved in but unfortunately they did not stay either. it opened 48 years ago. when teams just came down here to get ready for the season, not to make a profit. it closed when the indians were offered $100 million. up the offer and consider the offer and consider the implications and said see you. any business, if someone is going to give you more, and you have to pay less, that is more attractive to you. as long as there are communities out there willing to front the expenses, and

michael mckee joins me to put it into perspective. was it all about mother nature?ere righthermen when they said it was going to snow. the economists got it right. real good explanation because there was a big storm and weekend on -- and a lot of people who were out of work. february average comes from a different survey. there was a weather effect and you could see that in hours worked. thing that kind of would be affected by the weather. other good news in the report besides the number of jobs created were the revisions, smaller than we have seen in recent months but still on the right direction, pushing up the jobs total for the month. at this point you have to say despite the weather, the academy -- the economy hanging in there. >> what about that uptick we saw in the unemployment rate? >> the unemployment rate moved for the right reasons. more people came into the labor force and fewer of them found jobs. that is what you would expect in a recovery that people think there are jobs that are available so the comments of the labor force and they do not all find jo

michael mckee is here with me at the beginning of this janet yellen era. this threshold of 6.5% has been such a key metric tom a but that may change? >> it may be the first thing she brings to it. this is not her first rodeo. she has been on the fed since 1990 four. this is actually not the first fed meeting she has chaired. february 20 there was an open meeting on dodd frank. the first topic of business is -- what do you do about the so-called evans rule? that it will be appropriate for as long as the unemployment rate remains above 6.5%. it has come down a lot faster than they thought it would when they adopted that rule in december of 2012. >> the question is, why does this level of unemployment not feel better if it is better? the idea that the economy is not doing well enough to really rely on this measure. >> at this point, you have set the threshold for when you will start talking about interest rates and when the market reacts to that guidance. the guidance was supposed to keep the rates lower. if we go below that, the rates start to go up. they ca

michael mckee is here. >> the fed is watching.t was decided after the financial crisis that banks had to improve their financial position so that they do not fail in times of high stress. now, depending on the bank, there is a little bit of a different message. for citigroup, it is a much stronger message, because citigroup has been through this before and the fed is extremely disappointed in the banks for not being able to, essentially, get it together. here is what they wrote. the 2014 capital plan reflected a number of deficiencies, including in some areas that had previously been identified by supervisors as requiring attention. in other words, we told you how to fix this and you did not do it. the three foreign banks that did not pass are new to the process. the process was a little easier on them than the existing banks. the feeling as they will learn how to do this, learn what the fed is looking for in terms of its requirement in the way you put these estimates together. the final bank that failed, zion spang corporation, e

tina martin adams with wells fargo, michael mckee joining us as well.markets for us today is my colleague alix steel. what are we expecting? >> the two things to watch for our what do they do about the 6.5% threshold? market expectations are that they trap it. -- they drop it. you want to look at their new economic rejections. -- new economic projections. does that influence their thinking about where to put the fed funds rate? we will also look at -- only nine members voting this time. there are three empty seats on the board of governors. you cannot count the number of dots but you can look at where they are placed. >>did michael miss anything? the communication style of our new chairwoman. this is a whole new fad and a whole new chairperson leading the fed. -- new fed and a whole new chairperson leading the fed. this is our get to new -- get to know you, are coming out party. >> what the she have to tell the markets? >> she will not be talking about a change in policy. it is how she will communicate the policy. we are going to be looking to see what

michael mckee is at or breaking news desk. >> interesting news from the durable goods up 2.2%. expectation was for a .8% gain. transportation only up .2% on the month. capital goods, nondefense, aircraft, the proxy for business spending, it is down 1.3%. that is the second loss in the last three months. does not look like businesses are ramping up a lot. most of the change seems to be in the transportation area. that seems to be a little bit because of additional boeing sales and because auto companies were building their inventories, that is a worrisome trend down the road. it does not look like a great report at this point, the headline number is good. thatents, .9% gain, suggests the first quarter might not be as slow as it had been pointing to. alix? >> thank you so much, mike mckee on the breaking news for durable goods. active facebook's purchase of oculus. focusing on ceos like mark zuckerberg and how they get the message out -- blogs. heather is ceo of wpengine, a and management company supporting the most sophisticated clients. google, gap, the discovery channel. a ple

michael mckee joining us from florida. just be catching a few rays in the process. >> we all need after the long winter. why an 80 something media mobile loves a company that targets young males. what rupert murdoch sees in vice media. ♪ >> type from some top media headlines. grubhub is one step closer to going public. they have set a price range to the the ipo. they will be valued at one point $7 billion. among the investors a goldman sachs private equity fund. apple and comcast are in talks about teaming up for a streaming television service of wording to "the wall street journal." op would use the apple sett box and you can bypass congestion on the internet. nokia'sin the sale of cell phone division until microsoft. asian regulators are still reviewing the deal. microsoft agreed to buy it for 7.5 billion dollars. it is hoping to challenge apple and samsung's dominance of the smartphone market. next storyect of our is bearded, tattooed, checking if the media world. he runs a vice media, a company giving traditional telev

i am joined by michael mckee.r the third month in a row of decline. .verybody watches it comes in as expected, a slight decline from the prior month. these are january numbers. .2% increase, not bad. you can't complain too much about that. monthlys did see a decline. this is december to january. chicago was down one point two percent. las vegas was up 1.1%. they are still recovering from how far down they fell. >>ir percentage gains are up. >>weather is playing a part. >> there are weather related price slowdowns. there will be price increases throughout the year, but at a slower pace. in a summit bring naji. rates.the rising people not getting paid that much. how was i going to affect home prices going forward. >> good morning. that is a major decision affected for consumers in this environment. a lot of consumers are preferring to rent and the stay more flexible and moving to where jobs are. wage growth has been relatively stagnant, we have seen concerns. we still have to have a 20% down payment. you have to qua

michael mckee is here to defend himself as well. this should be a spirited, interesting discussion. good about taxpayer spending on the stadiums? wax it all depends on where the stadium is and the reasons for it. here in new york, yankee stadium was built on strictly private funding. the yankees paid for every cent of the construction in the new yankee stadium. and they paid for all of the ongoing operations of it. for example, in florida spring training is a tremendous economic boost to florida. look at this and use actual data, spending and taxes before teams come in. when the yankees move from fort lauderdale to hillsboro, it went up in for broward county and down and hillsboro. so, there was not a demonstrable -- to the the city county from the yankees arriving. want is a benefit if you to see baseball, but in terms of tax dollars coming in, you can't find it. are we able to quantify what it actually does for the local community? county, fort myers, they have two teams. they did an economic impact study. economists don't like it, but take the numbers at face value, those teams a

michael mckee is joining us. important are these weekly jobless claims in the face of the fed saying it is no longer going to be looking at 6.5% unemployment as the threshold for dating what they will do on policies? >> the fed is looking at other indicators and they have all along. they might've had a threshold but it was not the only data pouint. number iss particularly important because it comes from last week when they were taking the survey for the march payroll report. we are still at 320,000 even though it went up by 5000 tells you that the labor market is in pretty good shape. we are not seeing companies cutting back. for two weeks in a row, there have been fairly low numbers. it has to give some ammunition to the idea that the economy may be was not hit as hard by the weather as we thought and will come back in march. people will start talking about strong march payrolls report if this continues. becauseis important everyone had been pointing to the weather. we heard from fedex yesterday that it was blam

. >> thanks so much, barry knapp, and of course our own michael mckee.akers will be unveiling their own new models. we will go to the auto show. might you be there, matt? don't have a choice. >> you are doing your own unveiling. >> that's right. sound like aant to biased journalist, but that is my favorite brand. >> we are back right after this. ♪ >> the geneva auto show kicking off with major automakers unveiling their hottest ticket items for 2014. if you forgot to get your ticket there, you are in luck because one of the most anticipated reveals is right next to me. i am joined by ducati north america's ceo and we have the new diavel, which is a huge hit in north america. i know guys who have switched over from harleys to this. you guys want to take off the cover? let's do it here. introduced in,as what? 2011? >> correct. >> it is a lightweight cruiser, 200 kilograms, right? >> 100 20 pounds. >> 162 horsepower. that is a massive boost over what you would get for a harley -- although i know harley guys say they buy them for different reasons. how much

michael mckee is standing by with more. 5.6 is lower than expectations?> but better than it was the power that prior month. this was a smaller move that we have seen over the past six months. it goes up which is good news. take a look at the underlying indicators, the ones we followed the most, almost all have improved. we some more in the way of new orders, more in the way of shipments suggesting that manufacturing is hanging in there but the only bad news in the numbers is the employment index falls by about half of its previous value. maybe we will not see as much as hiring but it's hard to tell. the empire and you factoring index doesn't always translate into the other regions of the country. if you need some to trade on today, at least you have some good news. >> thank you very much. coming up, if you want to retire in style, you just need perfect ncaa bracket and you could win $1 billion. what are the odds of getting every single game right? we got the real story on why new jersey is putting the brakes on the tesla direct sales model. stay "in the l

michael mckee as well. goal for the world cup. hoping a soccer shoe will revolutionize the game. makers." ♪ >> welcome back to "market makers." i am stephanie ruhle. nike is a leading sponsor of nearly every athletic event in the world. it will have a major presence at the world cup in brazil. they are national -- they are also the national sponsor of the team, how fitting team usa. designed a new cleat specifically for pro soccer players. i spoke with trevor edwards, nike's head of brands, from barcelona. they sponsor barcelona's team and they have star players. take a look. product.a flyknit they came from simple insight from football players that said they wanted their barefoot with cleats. feel,es an incredible touch for the ball and great traction so they can move around. we are really excited about this new boot. it creates a new standard in terms of performance. >> how important is this for you? when you sponsor teams like barcelona, it is an apparel licensing deal and you have players like messi who wear adidas. you are sponsoring brazil and the world cup, you have your p