Equities as Jpmorgan Earnings disappoint investors. Indira lakshmanan on has laid developments from nato on Russian Troops along the border. N we begin with Julianna Goldman on Health Secretary nominee Sylvia Mathews burwell. Good afternoon. Good afternoon, mark. The disastrous obamacare rollout, that was months ago, that was back in october. Why did the white house weight so i can make this change . Wait so long to make this change . You had the president , out and say he was officially nominated Sylvia Mathews burwell, budget director, to replace Kathleen Sebelius as health and Human Services secretary. Timing is everything. Ive been rumblings that the president was going to be making this kind of change, but they were waiting for there to be a positive narrative around obamacare, and so last week you had the president doing his victory lap from the rose garden now announcing 7. 1 people had enrolled in obamacare at the end of the enrollment period. Kathleen sebelius and asked it was 7. 5 Million People when she testified on capitol hill. She is able to go out on a high note. They think they are turning the page here and moving on. Julianna, what kind of pressure within her . What kindey o of pressure were they under . They were under pressure from top democrats. They said you are making the argument that the failed website is unacceptable. Well, that means somebody needs to be held accountable. What this does Going Forward is take that argument away by having caffeines bilious as did Administration Official who is being by having Kathleen Sebelius as the Administration Official who is being held accountable for the botched rollout. He needed to get this done when they had some space between now and the november midterm elections, when republicans have expected to they have already started to use obamacare against democratic incumbents. Yes, the confirmation hearings are going to be pretty nasty. All sorts of dirt about obamacare is going to come up but they think they can get it out of the way while they have this positive narrative and then move forward to november and. Really to the economy and piot really to the economy. Talk to us about ms. Burwell. She has been through this. She sailed through, but as you point out, probably not this time. It could be a lot more rough when than when she was going through her coverage hearing for budget director. She was confirmed 960, which the president made a point of saying in his announcement. She is one of the president s top advisers in the white house, protege of bob rubin, work in the Clinton White house as deputy chief of staff, was deputy to the band budget director and not treasury secretary jacqueline and now treasury secretary jack lew. The administration is emphasizing that she brings management chops to the position and is someone who gets things done. Julianna goldman joining us from washington, thank you. Jpmorgan kicked off earnings season not with a bang, but with a whimper. It is falling down other financial shares. Julie hyman, does this set a tone for other earnings this quarter . Expectations going into earnings season are relatively low. 42 drop in mortgage revenue, 21 slide in fixed income trading, which was telegraphed by the banks. Nonetheless, these declines are deeper than had been anticipated. We are seeing as jpmorgan shares selloff by about the most in a year. You have that is sort of the big marquee bank, the first member of the Dow Jones Industrial average to report setting at tone. You have wells fargo and that bank Beat Estimates with the gain in revenue. Its all lower loan losses for the bank. That was the positive outweighing a little bit the negative. If you look at what is going on with financial shares broadly, we are seeing declines for the financial stocks, concerns about bank revenue, how much is it going to be able to grow, especially with the regulatory constraints that have been put upon the banks. There is that concern, the continued selloff, the socalled momentum stocks, Technology Still feeling pain today. It is resisting in a parallel fashion, the zen pen the jpmorgan disappointment is happening. We mentioned earnings more broadly. Lets dig deeper into the expectations. The forecast is for s p 500 profits to rise one percent for the first quarter. The numbers we are getting now. If you look at context here, that forecast was for 6. 6 rise back in january. Goldman sachs found that on average, for the members of the s p 500, the forecasted fallen by about four percent. Were definitely going in to this earnings season was lowered expectations. The one potential advantage of that is that it leaves a lot of room for companies to beat the lowered expectations. He bar is set relatively low it is early days yet. This is a big marquee miss but it doesnt mean the entirety of the earnings season, that is what were going to get. And jpmorgan, they are the largest mortgage lenders in the country. What do these results tell us about the size of the Mortgage Market and how it is shrinking . We have seen a change in the Mortgage Market, right . When you have a telegraphed that the rates are going to go up, you have folks trying to buy homes. It hasnt necessarily happened this time because there is a lot of murkiness in the greater environment. There was the weather put down of what we saw happen in housing, hurting the housing recovery a little bit of the time. People are unclear with the economy what the rates are going to bring. Senior markets correspondent julie hyman, thank you. The European UnionsEnergy Commissioner says there is no reason to panic over gas supplies in europe. It comes after russian president Vladimir Putin threatens to run off gas deliveries through ukraine. Indira lakshmanan is in washington with more on this story. What can we ask what can we make a these remarks . Was talking about p what was striking about putins letter was that he was actually threatened to cut off gas to ukraine. He says ukraine owes us 2. 2 billion over the last 4 years in unpaid tax bills. On top of having cut off the subsidies for the gas to ukraine, he says we are not going to keep giving them aghast until you figure out a way to support their economy. It should not just be us, russia come subsidizing and supporting them. It is not a direct threat to the ee itself yet. Although the eu gets 13 of its gas supplies from russia through the ukraine, there are alternatives alternative ways to get that gas, particularly through the lovers. We did see market particularly through belarus. We did see markets move a bit on this news but some traders that they were grateful because gas the price in europe are high and it is not the same as the threat coming in the winter. Importantly, the european the german finance ministers saying that they will respond to putins letter. Is predicting its economy is going to shrink by about three percent this year. What is the latest on efforts to give ukraine Financial Aid . This meeting the meetings at the imf and world bank have been dominated by discussions about ukraine. You have ukrainian Officials Saying they expect to get 7 billion quite soon from the imf and we have imf leaders saying that ukraines need is more in the neighborhood of 27 billion financing. We have countries reaching out with offers. The u. S. Is considering more beyond the billion dollars in a Loan Guarantee underwriting. We will have to see where it goes from here. Finally, nato released images showing russia appointment on the border of ukraine. Why did they do this . They were trying to counteract russia, saying were are not building up troops next to ukraine, accusing nato of having released old imagery before. The images you are referring to are 7 commercial satellite images. Nato has released these satellites and allied you to see before and after. You can scroll across and they showed that this shows up to by thelitary bases russians on the other side of ukraine. In some ways this is about psyching out the opposition, psyching out the russians and saying me know what you are doing. U. S. Treasury secretary jack lew says that we, the united states, are ready to impose more sanctions if you go for their go further. At the russians coming up licensing for the last russian am station that was playing voice of america russia, denouncing it as orwellian propaganda. Both sides are playing the game. Indira lakshmanan, thank you. Russia, Vladimir Putin, the ongoing tensions in ukraine are the topics of tonights Political Capital with al hunt. Former National Security adviser is former National Security advisers and big enough prisons the. Greeces 4. 2 billion bond sale. We will look at the significance and the timing of this countrys return to the International Bond market. ] greece pulled off a successful bond sale this week, selling more than 4 billion worth of fiveyear bonds. It marks the end of greeces exile from the International Markets. Economics at the Nyu Stern School of business and cal berkeley joins us from our San Francisco bureau. Welcome back to bottom line. Good to be here. Back in february, you propose to that greece consider a bond sale before the european election. Why did you think the timing was right for a sale and what is bringing buyers back to greeces debt . It is a matter of comparison between the Interest Rates that other European Countries even portugal, which was to a large extent in a similar situation to greece and a way to go around the restrictive program that has been imposed by creditors on greece. , the eu, imf, and ecb, have imposed the program on greece. At the same time, the amount of funds is limited. It gives an opportunity for greece to have more money and also to determine a market based ability for greece. , as a resultf this of the entry into the financial markets, greece has an assessment by the markets for its credit. Other companies can take it manage of that. Agency saysratings that the bond issue shows the progress greece has made but it does not mean that the country will be able to finance itself on its own when the international Bailout Program ends later this year. What is greece needed you to show the International Community and the ratings agencies that they can stand on its own . There are lots of Structural Reforms that need to be done and the ones that need to be accelerated. Opening markets to competition, opening the market to pharmacies to competition, the market for trucking. These are important markets for greece and they are important for them to become open. Additionally, i think greece has its state strengthen sector. Although is very large it has shrunk considerably in the last 4 years. That theenture to say greek government could with one stroke decreased importance of the state and the economy by not allowing any more for the greek government to vote for the various pension funds. Greece is able to control a lot of the economy even when the state doesnt have a big market share in the company through the pension amendment. We are talking about an economy that is shrunk by about a quarter since 2010, and again employment rate is near 27 . Why did the International Market , the International Community giving greece a vote of confidence this week . The markets in general tend to anticipate what is going to happen, and we already see the signs of recovery for greeces. We have seen a decline in on implement for the first time in 4 years. We have seen car sales go up. We have seen a different mood in the population and greece. It is important that the recovery is in fact starting, and that is where the markets come in. Anticipate a full recovery, and now they are thinking very seriously of investing in greece before the asset prices increase. Professor, as you know, these are baby steps on the road to normalcy. All of that can be undone by the way of brooklyn stability political instability. Greecesb went off at central bank. No one was injured in that attack. How important are these elections to greeces future and what outcome will give the International Community confidence that greece is getting its house in order . This is a very important step, coming out of exile after 4 years. The political instability does remain. Hopefully in the elections coming up in may, not parliamentary elections, but still, local elections, i hope that the parties that are for the right goals, the shifting of the state sector, more openness in the economy, are going to have a bigger percentage of the vote and are going to be able to. Etermine the future of greece hopefully that is going to be the outcome. But the political issue does remain. In terms of the terrorist attack , putting a bomb outside the bank of greece and the office of the imf, that is still unfortunately part of the situation in greece, but i dont think that the terrorist contingent, lets say, increase, is significant in any way. I dont think they play any major role in political events. A professor of economics at the Nyu Stern School of business and calberkeley, always good to have your expertise. Thank you. Continues,ttom line if you love picking out at practice time, check your wallets. Your bacon fix is about to get more expensive. If you love bacon, get ready to pay more for it, not just the site, but all the staples are burning a hole in our wallet. Alix steel has been digging into how much more the most important meal of the day will cost. What is your favorite breakfast food . Cheerios. We had that really bad winter in the midwest. It hurt the winter crops anyway. Juice, itcon, orange is affecting a huge amount of production. The real story has been about bacon. The story here is that basically, piglets are dying. There is a virus that is killing them, spread through feces, not contracted to us. We are not at danger here, but it is very, very risky. This chart tells you the longerterm term effect. Before the virus from each pig made about 10. 1 piglets. Nine percent were kept so the farmer could keep breeding. 1 stage and the rest we get to eat. And the rest we get to eat paid the number has dropped to 9. 5 because the virus. Literally there is less pigs for us to eat and there doesnt seem to be an end in sight. What about the longerterm effects . Right, because you cant just after fingers and all of a sudden you have a pig. Also, you not seeing the effects yet in the market. Here is that bacon prices and pay prices were pigady on the rise prices were basically on the rise. April, you wind up slaughtering less pigs. It is sort of the perfect storm here for these prices. What about restaurants and other businesses . A lot of these restaurants tend to lock in their supplies about six to 12 months in advance. They are good for now. They tend to lock in those supplies in october and november of the year before. I have about 4 or 5 months to get the prices under control before they have to buy. Bloomberg industries and says we might have a 10 increase in allportrelated products dish all part all porkrelated products. Short term they should be insulated so that what is your staple . I had turkey bacon this morning. Not even the real bacon, turkey bacon. I love it. Less fat, less salty. I dig it. Bloomberg is on the markets. Olivia sterns has details. Fracas prices might be up at stocks are down to the tech selloff has come back. Earlier this morning, it was briefly trading positive. We are watching movies in 2 big stocks. Zynga has hired a best buy executive and is hoping that a management shakeup can help turn around the struggling company. The shares have lost over half the value since the company went public more than 2 years ago. We are watching garden shares. Shares. Aurant darden we will be on the markets again in 30 minutes. Welcome back to the second onfhour of bottom line bloomberg television. I am a Mark Crumpton. But start with breaking news president and First Lady Michelle Obama had adjusted had adjusted gross of 98,169 in 2013. 59,231 to 32ated charities. In 2012, the obamas paid 18. 4 in taxes. Stay tuned to bloomberg on monday for special programming on everything from the future of the mortgage deduction to how you should handle your bitcoin profits. Taxing america, all day monday on bloomberg television. I will be speaking with a Senior Research associate at the urban institute and we will focus on pop up taxpreparation stores cheating unsuspecting clients. That is 2 30 p. M. Monday on bottom line. Lets check the top stories of this hour. The National Transportation safety board is investigating a crash that killed 10 people last night in california. Busdex truck slammed into a carrying more than 40 high school students. The chartered bus was shuttling students to Humboldt State university for a visit could 5 students, three adult chaperones, and the driver killed in the crash. Australian Officials Say that theyre confident that signals detected deep in the indian ocean are from the missing malaysian jets black boxes. On a morezeroing in targeted area for the source of the sounds first heard on saturday. Bmw, the latest auto company to issue a recall.