Will be the one breakthrough in bipartisan negotiations. The release of two americans held by north korea. Kenneth arrived at a military base outside washington. North korea sentenced them to years of hard labor. There is no ill will. He would not have wasted the two years upon himself. I think he looks back and he wants good to come out of all of this for everyone involved. North korea says Matthew Miller was trying to investigate the countrys human rights investigation. Residents have overwhelmingly voted for independence. It may force spains Prime Minister open talks with officials. They have a number of gripes with the spanish government, including budget cuts and taxation. A year of austerity. Plus, a deadly ignition switch problem. Gm ordered a half a million replacements which is almost two month before telling the federal government there was a problem. This is according to emails by the wall street journal. Viewed by the wall street journal. This led to the recall of more than 2 million vehicles. Uber trying to raise million dollars. 17 billion last year. The ceo wants a higher valuation this time around. Staying on corporate news, mcdonalds is out with sales numbers. Matt miller, it looks like mcdonalds is better than expected. Yes. Five 410 as far as meeting or beating wall street estimates with sales. Today, they beat estimates. Still on decline. 0. 5 , better than estimated. The u. S. Area has been a problem because of growing competition the menu was healthy little bit by the monopoly. A decline of only 1 compared to an estimate of 1. 9 . In europe, the economy has been a problem. Still seeing shrinkage, but only 0. 7 . In asia, where the real problem concern, that some of the food, especially the meat, could be dangerous. 4. 2 . Decline. Or a 6. 1 around the globe, things are better than estimated, but still falling. Mcdonalds hopes to simplify the mcribbringing back the for a boost in november. We will see how mcdonalds continues to trade on the sales numbers. Moving and shaking this hour, the Hedge Fund Billionaire john paulson. Last month, his hedge fund posted a 14 decline. That gives it a 20 loss for the year. It has been a rough month for the for them. Preferred shares of fannie mae and freddie mac tumbled. Paulson bet on Companies Involved in takeovers, spinoffs, and bankruptcies. Saw a lot of those and end. Wrappingaving trouble his head around it. Markets arecern still way too high. My next guest is concerned they have been propped up far too long by the feds easy money. And that we may be headed to japan style economic. Of course we want to lift up our viewers by saying we are headed for better prices here . Outcomes thatwo are possible. But that is way behind. Nations they should have started raising rates slowly over a long time ago. Let me stop you there. Would you see inflation . You can find places where it is mispriced. They look at something and say, this is better than what we had to for we will reduce the price. Things like education and health care and largescale purchases are far higher. They have been going up six or seven or 8 for generations. Theyre very concentrated in a short time. The prices are rising but does that necessarily flow into inflation . Up you are buying a car or paying for your child has his education, of course. And it affects your ability to do other things. There are things that are missed measured. I tend to look at the overall inflation rate. Has an impact on how people can afford to buy other things as well. Whether oil is expensive or not. Startedthey should have raising wages very delicately in 2011 and early 2012. Glass a long time ago. A long time ago. Designed to deal with an absolute catastrophe. Whoe are a lot of people live on fixed income and have a low risk investment. Half there would have been more dollars in the economy. Maybe. If the fed has started raising rates in 2011, 2012, if you look at the numbers they look at for inflationary pressures or wage there was nothing there for the last two years. Inflation is not the only mandate, number one. Has done much better. Since 2012, if you look at the trailing averages, we have been adding roughly 190 jobs a month. Which is quite good when he that, a during a lot of lot of it was government redundancies. Time, one outnton of every four jobs was government. Were adding more private sector jobs during this time. We were losing government jobs. I just take it from the other end. Janet yellen and Ben Bernankes issue was, if we start raising rates too early, might we be plunging the u. S. Into a japan style crisis . I would argue if you look at the history, these zero rates have embedded in japan zero growth. If you slowly raise rates also, keep in mind, they were very worried about u. S. Consumption. Giving people consumable dollars is a very good thing you read i think it ultimately distorts economic and financial and investment decisionmaking. A very slow process of a basis point or two every three or four weeks. Last point, the most effective tool the central bank has for dealing with this weakness is the ability to cut rates. Unless you normalize rates, that tool is not there. That is true. That is what mario draghi is faking facing right now. Looking at real Interest Rates. Tay with me for a moment moving overseas, president obama is kicking off a weeklong tour of asia and australia. The trip marks his second to the region this year. Phil mattingly is traveling with the president and joins us on the phone. What does the president hope to achieve . I think it is a recognition amongst officials that they really only have two years left to implement a central tenet of the Obama Administrations foreign policy. The main thing has been on the trade deal they have been pursuing. Leaders meeting today and the president himself saying theyre trying to boost momentum and work out issues. They are a long way away. They are. The tensions between china and japan are pretty high in recent years. For the first time they have met at the forum, tell us about this meeting. That is right. At least somewhat of a positive step, unless you look at the pictures of the two shaking one anothers hands. If you talk to officials after the meeting, they say, it was a good first step. A lot of instigating going back and forth from both companies in the last years, but at least they were willing to meet. They feel like this was a positive step over. They hope it is a repair to the relationship. A rough patch in the last few years. A very rough patch. On the last note, russia, speaking of relations, Vladimir Putin also attending the summit. How will the president deal withs presents . It is oh is funny to see the dance people play with. No one is really sure yet if Vladimir Putin and president obama met and shook hands but this is usually the time they run across each other. There will not be a an official bilateral throughout chancep, but a very good they will meet on the sidelines and have a discussion. But funny to watch how they tried to work with one another, who talks with who throughout these types of big summits so far. Travelingou so much, in asia with the president. Coming up, customers are getting planak the at their 2015 as the president hopes to avoid any missteps in the last year. Potential obamacare customers can get a sneak peek of the health plan today. The Obama Administration cannot the same make mistakes. The Affordable Care act face a threat of an entire repeal by a republicancontrolled congress. On friday, the Supreme Court will take up the case of claims that obamacare does not permit more, joining us for drew armstrong, who covers the Healthcare Industry and obamacare. And Neil Grossman is staying , managing partner and chief Investment Officer who wrote a book recently about my nails. Millenials. We had theys, Supreme Court deciding they would hear these cap this case. Watch the words established by the state. About 4 million americans. We will have an answer to that probably by june. Right now, people are going online to healthcare. Gov and shopping for plants. We are waiting for the next six or seven months. It is all on certain at this point. Why is it important they are reviewing this and why would they find this credible . Basically it challenges the federal subsidies in light of where people live and whether those states have their own coverages. Lets back up. Law basically said, states, you decide whether or not you want to run the marketplaces where people can go online and shop for plants and buy coverage on their own. Hit 4 only 14 states did 36 said no, we will leave it to you. The federal government set up its own shopping website and we ended up with a hybrid system of states. Going back to the case, what the law says is for subsidies, for people who have lower income, get a little financial help. It has to be established by the state. If it is not a statebased exchange, then it is a federal exchange. The question is, are the subsidies in 36 federally run subsidies valid. Your take on obamacare is what . From the economic perspective, one of the interesting things about the way it is structured, it makes the least exposed the ones asked to people. Most, young over time, i think that will have an economic impact. Less disposable income for things like starting families, investing in markets for their future and retirement. Obamacare should benefit millenials . If they do not have jobs, if there is parttime work homonym may have insurance. That is correct third but they still have to pay for it. If you do not have enough money to pay for it, the expense is coming elsewhere. Sayproblem is usually you to the young people who are the healthiest and least likely to need the program that you are paying a lot more for it so other people do not have to. That is true. Me being a former young person, i do remember that. But on the website itself, how do we know the Obama Administration is actually taking care of some of these issues . We will find out in about a week. I remember sitting in a room last year a week ahead of the thing launching, being reassured by the administration, we have tested this extensively, and it will work. Remembers it was an outright disaster. I have heard this before and im a little skeptical. They told us it would work and it did not. They have had a year to work on it now. Someume they worked out kinks. It started out a disaster and ended up a success. See when this and thing is opened, did they really get it all right. He just had an election where people are still trying to understand what the implication of republican victories mean. Of might look at the case what is going on as an opportunity for the republicans to move to the president and say, listen, we do not like this, and maybe we can find a compromise. Possibly. Lets hope. Thank you so much drew armstrong and Neil Grossman. Thank you so much for joining us. New book is available online. Get it wherever you want. Coming up, regulators take another shot at too big to fail banks. That could lead to a fight over higher capital requirement. A movie based on Disney Marvel comic book characters, again. We will be back. In the loopatching live on Bloomberg Television. Good morning. I am betty liu. A look at our top company news this morning. The world causes largest bank could face a buffer role as the Financial Stability ward tries to and too big to fail. Said the biggest banks might be required to hold capital as a quarter of their assets waited for risk. The rules will tend will not take effect until 2019. Japan passes aviation capital. To 80 of its 737 claims deliver between 2018 and 2022. The company said they expect demand to come from lowcost carriers which are gaining ground in asia where it 36 million in prizes were given two math mathematicians. She spoke to a legendary legendary investor and asked where he would be spending now, in china or in soaking valley. Isi think soaking valley ahead of the game at this point. Most of the innovation is coming out of silicon valley. China is catching up quickly. There are a lot of innovative ahead andcharging paving the way for entrepreneurs to come out and innovate. Now you know. 26 minutes past the hour. Bloomberg television is on the markets. Still digesting the jobs data from friday. A martin reporter, matt miller, has more on the market. Thank you. Time for your futures and focus segment. Oil futures are climbing back this morning and they did on friday as well. Back near 80 a barrel after dropping as low as 76 last week. That is just the closing price. Joining me for a look at what is striving up the price of oil and how you can make money off of these, dan on how you can make and scott bauer, Senior Market strategist at trading advantage. Lets talk about what is driving this move. First, let me ask you, what is that title . A slow i wrote about the financial is asian of oil markets. I was feeling to have a better insight. A lot of analysts tend to focus on fundamentals. Fair enough. Most fundamentals matter. What they tend to mistake or leave out our hot deep are how deep they are. That is what i wrote the book about. . Do you think, what about what we have seen in the last few days . A lotlly has been of new fighting in the ukraine. That stirred up again geopolitical tensions in the market for a long time, sort of forgotten under the weight of collapsing oil markets in the last few weeks. What you think about the last few moves . Dan isree with political, but also this forecast we are supposed to get later this week, almost recordbreaking cold temperatures. Were seeing a lot of the buying based on that. But we get them up to 81 level and that is an opportunity to short them again. See us trading back down to the 76 level very quickly. Class of is your trade . You have 81 and you want 76 . Exactly. If this rally continues here, whether it is later today or the back i am looking to break down to 76 where we traded last week. Shortterm range and that is what were looking at. Currently trading at 79 barrel dollars 79 per barrel. Scott thinks it will short or sell at 81. It is a profit of five dollars if everything works out right. Contracts of 1000 barrels, scarlet make 5000 barrels on the straight. I would not be so bad, but you have to have everything working out right. Indeed. It is 5000 per contract. One is obviously a very small position. I actually like scotts trade a bit. There are a lot of players out there facing an even minor rally. We will have to hedge production for 2015 and further out. There is for the shortterm for the shortterm, a rally. Thank you. Oils endless bit. On the markets again in 30 minutes. Stay with us on Bloomberg Television. Thank you so much. Matt miller on the markets. Turning to big headlines out of technology today, uber is in fundraising mode again. Looking to bring in about 1 million to finance its Rapid International expansion according to people familiar with the matter. Highly among one of the highest valued. I want to bring in cory johnson, in san francisco, because he loves to talk about uber so much. How much is the Company Valued at now . Was athe last evaluation 17 billion valuation. They are not alone in the spirit a number of privately Held Companies have seen valuations and are raising money in valuations. 10 billion is an impressive list of companies. The companies are much less farther along in uber, in whole four years in development. You have Companies Like snapchat, dropbox, pinterest, all with multimillion dollar rounds under their belt. To some extent, they are right there is global macro. Ober is offering it potentially somewhere. And in particular is an Interesting Company whose out in a is canceled lot of different directions. It is. I cannot believe they are only four years old. Theyre using the billion dollars they will raise to find International Expansion. That is always music to investors years. So where is uber going . Europe and asia are particular focus is. We have read a lot about the struggles in europe. Isa in particular interesting. There facing competition. In 19 cities,pany lugar is only in 10 cities in india, so the notion that the able to strengthen their downs sheets their Balance Sheets can help ring drivers to the platform. It works better the more drivers on the road. The experience of drives is not just replacing the existing tax market, and that is were places things get interesting with uber. What happened here is there are now more drivers driving goobers on the road than their word driving placards crutcher years ago. They have not just grown the market. The overall market by more than hundred percent. Matching other businesses they might end up in, such as financing, doing delivery, and other things, understanding traffic with so many cars on the road. Forget all that stuff. The car writing business is starting to change exists the existing and it expands the market in significant ways quickly. That is incredible. Thank you so much. Cory johnson, bloombert west edgar editoratlarge. Still to come, the battle for your living room. Tv programmers rush to the internet as more americans go beyond cable television. With a man who helped launch other networks. Plus, bloomberg gets physical. Bernie up the charts. Details are coming up. Are you watching this show on tv or under ipad or iphone . We are focused right now on how the tv industry is moving further online. 87yearoldek, the broadcaster cbs plunged into Online Television with a 24hour online news channel. We are part of the digital age and there is a digital revolution going on. Tbs is primarily a content company and we are creating great content in education in news and sports. Cbs joins a steady stream of personalities into the divisional round digital realm. Joining us now is a serial media entrepreneur who is working to revolutionize the way things are distributed in the world and online. The founder and ceo, with hits on Cartoon Network and nickelodeon. So you know what these 20yearolds like to wa