Headlines today. Cory johnson looks at googles efforts to speed up connecting to the internet in several u. S. Cities will stop peter cook has highlight of Janet Yellens testimony before the Senate Banking committee. Those stories in just a moment. First, lets get you the latest on ukraine. Ryan chilcote filed this report from key of. The Ukrainian Parliament has just ordered in a new government in the ukraine. Its job will be to prepare the public for snap elections in may and make sure they are able to get enough money from International Creditors to pay their bills in the meantime. U. S. Has ponied up a billion dollars in the form of a Loan Guarantee and the imf says they will send a delegation next week and they are ready to talk all stop but those loan issues are big ones will stop working billion dollars is what this country owes over the next 12 months. A lot of that money is due in june. I spoke to the countrys new Prime Minister and he says he can keep things together. We will do everything not to default. If we get the Financial Support from the United States, from the european union, from the imf, we will do it. He also told me he will be this countrys least popular Prime Minister ever. Those loans will come with conditions that will not go down well here in the ukraine. Think of this as greece 2. 0. Meanwhile, plenty going on outside kiev in crimea, in the south of the country. Gunmen have seized a legislature, lowering the key of flag and raising the russian flag. Outside of the country, the former president is in russia and he has said he will hold a press conference there this friday. Ryan joins us live on the phone from kiev. He was not getting chances are the reforms he will have to push through parliament for ukraine to get International Aid will be painful. What will that mean for the ukrainian people . It is going to be tough. The imf would like to see natural gas tariffs for example. People use natural gas here for almost everything. The big issue would be eating. Ago 20ust two weeks degrees celsius here and heating would go up by even more. Another painful thing would be the currency. It normally trades at about eight to the dollar and has already fallen to 11 and a half. It hit, up to about 10. 7. The imf would ike to see even less support. Subsidies, social spending and budgets will get cut back. Ukraine can kiss gross goodbye for the next couple of years. You mentioned the president who fled key of last week is the subject of an arrest warrant. He is scheduled to hold a press conference. What is the latest on that . It ought to be interesting. He has already said the new government here are not season hes a legitimate resident. What is he going to say now that he is under russian protection . The Prime Minister in the ukraine accused the government of stealing 70 billion. We have all seen the footage of where he hadome the spanish italian and really extravagant lace there. That is something people are talking about. The the equivalent of entire external debt. They have instructed the banks to freeze all his assets. Hes not a popular guy, even among his old supporters. We have about 30 seconds left. What is washingtons role . State announced the Obama Administration is landing a billion dollars in Loan Guarantees. This is a really tricky one. Places in the former soviet union have not been on the u. S. s radar. Up a lien dollars gets ukraine through the election. The u. S. Would have to do a lot more to really influence things. Russia is very interested in ukraine. Up ine the g8 coming sochi and its going to be an issue. I dont know how much leverage it really has. Chilcote, joining us live from kiev. Stay with bloomberg for comprehensive coverage of comprehensive coverage of ukraine. He will bring us a firsthand look at the struggling economy and efforts to help the people of ukraine on friday. Fed chair janet yellen acknowledged today that recent economic ada has been weaker than expected but says the central bank will likely continue to trim back its bond purchases for now. Our chief washington correspondent, peter cook, has more on the testimony. Fed isate with in the over the weather right now. Its fitting. Delayedimony has been for two weeks because of a snowstorm back on february 13. The fact that janet yellen and is in factues fitting. It was supposed to be a match to it she told the House Committee back on february 11, but in the two week interim, weve gotten a host of economic numbers that have come in weaker than expected. Today, she straightened her oral testimony and acknowledged the softness and talked about it directly with the committee. Asset purchases are not on a preset course. If theres a significant change in the outlook, we would be open to reconsidering. I dont want to jump to conclusions here. Was janet yellen, talking about what might happen to the bond purchases going forward. The fact that she has acknowledged some weakness in , that iscan economy significant. Chucks pressed by senator schumer about whether these weaker numbers could get the fed to pause on the taper. The mesa the message she sent was not yet. We dont know enough whats causing that at this point. Assuming the forecast holds up, the fed could and the bond buying altogether, but she also went on to reiterate that theres no sense of an increase in Interest Rates anytime soon. She stressed that but did say the economy is not moving to the point where she feels it is back to normal. She says that will take several years. Stay with bloomberg. Peter will have a live interview with the chairman of the tax writing ways and means committee. They will discuss the chairmans new tax proposal in the 4 00 hour of street smart only on bloomberg. Coming up, more on Janet Yellens testimony. U. S. L be joined by chief economist at jpmorgan when we return. Lex Federal Reserve chair janet yellen repeated the Central Banks likely to keep trimming asset personages asset purchases. For a look at that, im joined here by the chief u. S. Economist at j. P. Morgan chase. Welcome back to bottom line. Good to be back. Chairman yellen said she and her colleagues will continue to monitor data to determine if recent weakness in the u. S. Economy is temporary. Bondlso added the purchases in her words are not on a preset course. I took away there is still a high hurdle to stop or pause in the tapering process. It is not on a preset course. Take a different look in the labor market to stop. If that data were to really come in below expectation, we cannot rule out a deposit the next meeting. However thomas the labor market looks a little better in the labor report that it did the last two, i think the tapering will continue. She did deviate somewhat from her prepared remarks. She said recent reports may be weather related. She did say it was difficult to discern exactly how much. Didnt the weakening and the data begin in december before the latest cold snap . What type of weather do you see . With the revision to retail sales, it does look like december is when things started to weaken and for that reason, we are a little hesitant to ascribe all of this to weather. We see some regional patterns that are inconsistent with it being solely weather effects, so i think what she said is hard to discern, thats the only thing that can be said with certainty. Certainly less than 100 of the weakening has been whether in our view. Unemployment is at 6. 5, inflation is at 2, but when you look at these numbers and the jobless rate continuing to drop, is the fed going to have to take another look at the threshold . They are, and i think they have been honest about saying that. What happens after the thresholds . The minutes did not give a firm answer and neither did janet yellen today. The fed will revert back to qualitative guidance of the kind we saw back in 2011 when the fed was just describing the outlook of Interest Rates using words rather than giving hard and fast thresholds. Im speaking with the chief u. S. Economist at Jpmorgan Chase. Yourre revising down projection for firstquarter gdp softness inou note activity indicators has been widespread. Where is that impact being felt most and how long do you think it will last . It is being felt pretty widespread. Some of that is to be expected. In the second half of last year, inventories were built up at a pretty rapid pace and some slowing was inevitable. Are not worried about developments for the rest of the year. We are not seeing a more fundamental weakening. We ever getect if some normal weather here and get a clean picture of the economy, things will feel like they are back on track. You mention the return to. Ormalcy was inevitable are we seeing a return to normalcy . A lot of economists did not inc. That level of growth was sustainable anyway. Few temporary supports in the second half of last year and i think it made sense to save some of that strength, just like it makes sense to save the weakness we are seeing as also a bit temporary. The underlying threat is somewhere in between. Where is the American Consumer in this mix . Real Consumer Spending in the First Quarter is looking youre getting a little bit of an offset because consumers are spending more on utilities. Consumers are looking a little weaker than they did at the tail end of last year. What is going to matter here is whether we see some weakness and the labor markets persist. Last year, the consumer got a huge support from rising equity and house races. Youll probably see that continue so we need to fill in the gap. Its far earlier in the year, hasnt happened but we hope it picks up as the year progresses. The chief u. S. Economist at Jpmorgan Chase joining us from his office in new york. Always good to see you. Thanks for your time. When bottom line continues are the days of spotty wifi numbered . We will show you what to expect when google expands its Broadband Internet service to your town. Thats next. Millions more americans may soon have access to googles highspeed rock band internet service. The company is in talks with Nine American cities for its next round of fiber installations. Cory johnson is in provo, utah, the only city other than kansas city where the service is already online. Has been googles experience . Its the most exciting thing to happen in kansas city since the 69 super bowl. Provo is wondering if they are going to get the same results. Those results being increased business opportunities, consumers having a very different experience where they communicate a lot more and be more socially involved because theyve got a superfast internet. To atually went and talked local business person here and listen to what he had to say. Or maybe dont listen to what he had to say. But what he said was is rolling out slowly. Said someople he people dont even know how they are able to access it. We have talked to people who is thethe service same thing from going from dialup to dsl. Google has a unique set of skills to deploy here that is going to help them create a service like no other. Company is in talks with nine u. S. Cities. What will this mean longterm for the cities . Deal they are in kansas city now and starting to roll out in austin. They are rolling out faster here in provo because they are taking over existing fiberoptic systems that were struggling. This may end up going faster than austen even though austen had a head start. Theyre going to roll out to 34 cities and they are in negotiations with a lot of cities. They are trying to get expedited rules so they can get faster permitting. In kansas city, they got a real sweetheart deal where some city workers were devoted to working with google. But this is going to be a big thing for google. Thank you. Calories . Our chances are nutrition labels are not telling you the entire story. The fda and Michelle Obama have proposed a food label rules make at helping people healthier choices. As consumers and parents, we have the right to understand what is in the food we are feeding our families. That is the only way we can make informed choices, by having clear, accurate information. Ultimately come thats what todays announcement is all about. Washington isfrom our white house correspondent, julianna goldman. What are the changes being proposed . Lex we get a glimpse of the new labels from the first lady. Nutritional information is going to be bigger and bolder, particularly when it comes to the calorie count we all hate to look at all stop there is going to be an extra line for added sugars which is something that is ready controversial who three controversial. This is something experts say the added sugar that contribute to the obesity epidemic right now, one out of every three people suffers from obesity and since this is a show and tell, i brought something to take a closer look at what we might be seeing when you look at some ben jerrys Chocolate Cookie dough ice cream. Point is to make us more in line with what we are actually eating. At the pint of ice cream, serving sizes half cup. When i dig into a pint of ice cream, i certainly go for the full cup. That is going to be the new serving size. Everything else is going to be doubled. , saturated fat, it now goes into a 90 day comment time, andoure the Food Industry grocery administration, there response has been muted. After the 90 day review, that is when they will work on finalizing the changes would probably wont go into effect. All told, it is supposed to cost about 2 billion to make those changes but 30 billion in savings over the long run. Lex too bad we cannot keep the camera on you after we go because i know you are going to dig into that. 26 past the hour, Olivia Sterns is on the markets. But stocks are rising. You can see the s p on track to close at a new record high. Yellenget janet testifying earlier today, saying the fed is likely to stay on track with its tapering program. She says she will consider a slowdown if things become materially weaker. Wendys coming out reporting firstquarter earnings that beat analyst estimates. Wendys has forecast it will complete 415 franchise sales this quarter thomas a shares down now i about 3 . We will be back on the markets again in 30 minutes. Welcome back to the second bottomr of bloomberg line. Im mark crumpton. Thank you for staying with us. Lets check on some of the stories we are looking at this hour. Russia scrambled fighter jets and reportedly gave shelter to ukraines former president. Russia says he will hold a News Conference tomorrow. Prorussian government stormed ukraines offices in strategic region of crimea, putting pressure on the new Ukrainian Government even as it named a new prime mr. Today. Federal reserve chair janet yellen says the fed is likely to maintain its policy of gradually trimming asset purchases but also says the fed is watching to see if recent weakness in the economy is temporary. She also told the Banking Committee she expects the fed to favor low Interest Rates for quite some time. Attorney general eric holder has been discharged from a Washington Hospital and is resting at home. He 63yearold holder felt faint and short of breath ring work this morning. It is not clear why he fell ill. The Justice Department may release more details in the coming hours. Thats a look at the top stories in news this hour. Time now for the commodities report. Su keenan joins us with the details. We are seeing a shift away from weather to Political Climate as the key driver. We saw the price of oil fell and the difference between brent crude and west texas intermediate also narrowed. Unrest in the ukraine is having an impact on the futures. One strategist says giving the it is havingation, an impact on wti. Energy futures are on track to post gains for the month due in part to the weather and huge spike in heating oil and natural gas. Toc crude production dropped the lowest level in more than two years in february. Look at todays prices as we head to the close lower across the board with gasoline futures falling on speculation that above average supplies will keep prices in check. Natural gas futures rebounded from a fiveweek low. Oneweek dropis a of almost 26 . Thats the biggest oneweek truck weve seen in roughly a decade. Those comments are impacting gold today. Part of what we are looking at is the fact that the ukraine situation and yellens comment pricesortiva of higher that create a demand for a safe haven. We are seeing a big debate on where the price will be. Will be ainks we little higher. You have to consider the fact that gold has posted two straight months of gains will stop you are looking at unchanged as we had to the close right now. Thank you. Turning our focus to investments in emerging markets with the focus on the fed chairmans comments. How might quantitative easing curb growth . To bottom line. Is situation in ukraine becoming more chaotic by the hour. Ukraine needs money now. What concerns do you have about bailing out a country of 46 Million People . Clearly, the political situation is very complicated. It has geopolitical implications for the region. There is ethnic divisions, as we all know and the participation of russia has generated a lot of concern. We think russia is very unlikely to be as aggressive as some people fear and we believe the amount of money ukraine needs given the weakening of the currency is less than the numbers floating around. Threeyearing at a program of between 15 billion and 20 billion. Helpuld a bailout even that those reforms will likely be painful . Will be painful. This is one of the things the imf wanted. We saw the currency trading against the dollar around 11 today. Definitely it is a risky situation and not one of the best. Collapses, banks and