It was ok. Thank you for watching the video of all of our snow. The poor guy in his car. It had a happy ending. That is not on the morning brief. Overnight, stocks are down. That is led by emerging markets. The chinese reported a Service Report that disappointed. Concern there about slowing Economic Growth. Here at 10 00, on the economic front, we have ism and factory orders. We have the jobs report on friday. And janet yellen is set to be confirmed by the u. S. Senate. I know that you love burgers after the bell, we will have sonic earnings. Get started on a busy week. Lets do a data check. Futures are flat. Tenyear year yield, we are where we were three percent. Lets go to the chart. Here is the great bull market. The s p 500 has been correction free. What kind of volatility will we see into the new year . The backdrop of that, chairman yellen will greet us tomorrow morning. That would be the idea of the balance sheet. It is a template over all of this mess. All of economics. We are at 4 trillion on the balance sheet. She probably will not introduce on a much volatility. She will be safe to start. She has a big job ahead. We scoured the papers. I watched green bay and San Francisco. We got the morning papers. What a game. They are calling up and the coldest air of almost 20 years. That is sweeping over the Central United states and heading for us on the east coast. The temperature in chicago may not even hit euro today. That may be balmy. In new york, it is expected to drop to eight degrees. Freezing and orlando, florida. I dressed warm and i made a mistake. 7 00 tonight gets cold. Something like that. You are sweating right now. To beautiful women. We were just talking about chairman yellen. It is expected to be a historic day on capitol hill. They will confirm her as the first female chairman of the Federal Reserve. She is currently the vice chair. Her views are in line with ben bernanke, who seems up the upbeat. He spoke on friday. There is a new discussion with the vice chairman. I will be very exciting as he is vetted in the coming weeks. We have jpmorgan. They paid more than 2 billion. There finds keep racking up in the bernie made off condit ponzi scheme. This am and maybe announce tomorrow. The government accused them of failing to warn about this. The fines will be transferred to their vick tums. What an ongoing saga. Is interesting to note about the settlement is that again, the government is basically forcing jay p. M. To two not so jpm much acknowledge, but they did. They have to acknowledge the governments case. We will see that in the coming days on the madoff case. Washington got back to work today. The president returns from white. The Senate Returns to 88 a debate on benefits for the unemployed. Our chief correspondent down there is peter cook. He is looking up elections for 2014. Is the january discussion in washington about washington or is it about the first tuesday of november . It has a lot to do with the first tuesday in november. Immigrants will make their push again for extending unemployment benefits. It is important for the economy. The Unemployment Rate is still at seven percent. The big question is how it is paid for. This is a much larger effort by democrats to change the subject. Turn away from the problems with health care. And turn toward incoming equality issues, like raising the minimum wage. They will play much better with voters. One of the things that you brought up is paying for this bill. Is there a way to pay for it or is this going to be just a tapering over of a way to pay for it . Right now, republicans are insisting they will not pay for it. There are a couple of options for them. It is not cheap. Billion dollars is the price tag to extend for two months. There is some talk about a tradeoff here. Maybe with the farm bill. There are some subsidies being cut. Maybe that could be paid for. The republicans will insist that is assayed for in some form or fashion. That is their line in the sand. We need another committee to assist the president. He is the former president of oracle, in for chief executive charles phillips. An economic adviser to the president. What was it like being on a committee to assist the president with perspective . Does anybody listen to you . We would like to think he did. They did propose laws several times. He was up against a very tough congress. Very little was passed through. What would you recommend here . There is discussion of the idea of inequality. What should be the effective political thrust forward . We need to put people back to work. Construction is one area. Infrastructure gets it done . You cannot outsource it. We have a need for housing and roads and bridges. They do this in europe all the time. I totally agree. What is it that we cannot do the europe can . That was actually if youre going to talk about a bipartisan issue, you cannot get any more neutral than an infrastructure back. The republicans putsch back on it. They thought it was a state decision. Those they there were on both sides who could agree to it. Versus some of the other measures. That is what i wouldve thought. It did not happen. Peter cook in washington. What will be the effective strategy if they do not want a powerful government . They will talk a lot about the health care problems. They will go right back in the house of representatives and have a vote on legislation. That will laserbeam on the issue surrounding healthcare. Gov. They will require the federal government to provide more information on enrollment going forward. Problems with website include Security Problems with people. Perhaps they give up some privacy. This is all about politics in november. There are issues that each sides believe will play to their bases. Do not expect the conversation to change all that much. We need a cup of coffee to decide if it is an economy or an election. Peter cook its a started. Charles also continue. This monday, it is a fiveday work week. We are back to normal. That means we need a new normal. Company news. Here is betty. Lets start off with ford. They passed toyota and china. They surged 49 of the country last year. And hundred 35 thousand vehicles. The job report has been outselling toyota for the first time in china. Strong sales of the ford focus get credit. Waszos the story airlifted from the galapagos. He suffered from kidney stones. They amazon ceo that is painful. Airlifted by a neck of dorian navy helicopter. A spokesman said no surgery was necessary. He had a good outcome following treatment. Bitcoin is back above 1000. That is thanks to zynga. They said they would accept bitcoin for online social games. His is the second time it has crossed the 1000 mark. The first time, back in november, it once shortly after. That is company is. A lot Company Coming up. We will look across business and politics. We will also go to germany. Hans nichols chancellor merkel suffered an injury over the christmas break. Good morning. Loop, thein the founder of shutter stock. He is a gazillion air. Gazillionaire. They all know betty liu. Good morning, betty. Scarlet fu is off. I am here with tom keene. John malone at Liberty Media has made it clear that he hopes to consolidate the nations Time Warner Cable, the number two cable operator. There are some wrinkles in this complicate it story. Every time he is involved, it is very complicated. He is a financial engineer. At the core, he buys himself companies. That is what he does, in the most tax efficient way possible. Lets not forget what the news is. He is offering to buy, Liberty Media is offering to buy siri us. They already own a majority. What is going on is that he is hoping to take full control of sirius to leverage the cash flow. He wants to raise money to make that bid for time warner. That is the secondlargest cable operator out there. It is a big fish for Liberty Media to swallow. That is why they are using charter and sirius assets. They have been a cash cow. They have been lucky. They bought it and watched it grow. Cash cow for everyone but the shareholders. Does he give a care about the shareholders . He is part of the group. He should care. Radio. Re on sirius xm you bring up a great point. Most of the analysts put out reports over the weekend and said they expect a bump. If they are able to get this done and make everyone happy. We could see a bump. Who is against him taking over Time Warner Cable . Sirius xm radio spun a problem child for years. May be Time Warner Cable itself. The righte opened at price. This all comes down to money. Dollars and cents. We would have thought the regulators wouldve had a problem with this. More consolidation in the cable industry could potentially mean a higher price for customers. Regulators have actually come out on the other side and said they would approve or signaled that they would sign off on further consolidation. They do not compete in the same market. This is another world for malone. The regulators are involved because of media. Is this a precursor for more activity this year . These companies are all under attack by the internet. I can see where they want to consolidate. Regulators are saying they need to do this to survive. I think malone is a great operator. So is the guy in charge of serious. He is the one driving this. What are his best practices . Number one, he is a financial engineer. He is an operator at the same time. It is hard to get both in the same person. That is why they are such a great fit. This is the team you want. This is a lean machine. The team at Liberty Media. They do not hold their assets for long time. There and then they are out. Contrast thed you are they say suggesting that john malone is a Financial Operator . Is that too harsh . I think that is too harsh. They have been very successful for a long. Despite what you may say, they are still doing 1 billion. We have breaking news. Cristina alesci continues the story. John malone is so active this is out of europe. Lets not forget, we are talking about heaven america. He is also very active in europe. Liberty global is reporting that they are making a bid or putting the final touches on an acquisition for dutch broadband provider ziggo. Lets not forget that he is active on both fronts. U. S. And europe. In europe, the consolidation play is much bigger. He is making a lot of moves in europe. Much earlier than what were talking about here. The market is more fragmented. They have to give a bump to sirius to get this done. Are you a guru . Guruette . Deal slated. We going to talk to the staples executive of global growth. Extending way beyond notebooks and pens. This is bloomberg surveillance. You are watching bloomberg tv. We are streaming live on your phone, tablet, and bloomberg. Com. Good morning. I am tom keene. With me, i can barely speak, betty liu. Cristina alesci as well. Scarlet fu is having a tantrum somewhere. Someplace warm. I am here. We have a busy monday morning. Here are the top headlines. Angela merkel was heard in a ski accident at the end of december. She suffered a hell that in pelvic injury in switzerland. She is canceling appearances and appointments over the next few weeks will she recovers. I will not ski anymore after hearing about this. Much of the country is bracing for the coldest day in almost two decades. The forecast is calling for frigidaire to sweep over the central u. S. To the east coast. Amateurs will be below zero or in the single digits. Chicagos daytime high maybe 10 below zero. This has already caused flights to be canceled across the united states. Goal asports, a field time expired gave the San Francisco 49ers a playoff win over the green bay packers. The victory sends them on to play the Carolina Panthers in next weekends playoff action. The temperature in green bay, two degrees above zero. They have to get used to that with the super bowl in new york. You wonder if this is a lesson for the meadowlands in february. I think it would be great to have it that cold. Why . Real football. When they made that kick last night, you watched the guy getting the ball and he puts spin into it. He spun that just a little bit. That has nothing to do with temperature. The colder football snowbowl. Charles phillips is our expert. Hard to catch. Hands are cold. We have been successful. What do you have, Cristina Alesci . I like the recommendation a new tech through is recommending that users boycott snap chat as a result of their lackadaisical response. He says only if they see that their users are serious will they adopt a new attitude towards your data. If you do not do this, if you keep using snap chat, you are part of the problem. He is telling users to take it into your own hands. Tell the company you are serious. They need to protect your data. That is the heart of the matter. You are working for fortress allison for a number of years. This is a big deal. He giggled during the quote. Chatdo not think snap users know the wall street journal. Exactly. We have to want greater security. We have to want greater security and effect greater security. An uproar about this. Electronic army. They do not care about it is the last generation. They accept things and enjoy it. Can i just challenge that . I do not want to see those pictures. They do not care about it until the cost somebody their job. If the consequences us direct that. They do not see the consequences. Most of them say who cares. This is a company that has built its Business Model on keeping it secret. This is fundamental. This could be a game changer. The new generation could be more aware of these things. The model is keeping it secret from your parents. What are you sending me on snapchat . She doesnt even have it. Pictures of bowties. Talk tocome back and mr. Phillips about whether he cares greatly about Economic Growth and the various inequalities of the united states. Good morning everyone. It is bloomberg surveillance. Good morning everyone. I am tom keene. Betty liu and Cristina Alesci are with me. Scarlet fu will return at some point. Lawrence summers, an economist at harvard, often disagrees on economic issues. They both agreed in january this year that Economic Growth is returning to america. Is it the right kind of growth . It is growth for the tech savvy. Growth for the one percent. The growth for the rest of america . Charles phillips has served on the president economic recovery board. He has ample experience linking politics and policy to business. Wonderful to have you with us. What kind of Economic Growth do you want us to have . To be moreed broadbased. Interest rates are about to take up here in if you look at what investors are anticipating, they are anticipating rates going up. There are redemptions for the fund. Mortgage rates are 4. 5 . Probably going up again. That is a damper. As long as it is a slow taper, the economy can deal with that. The bigger issue is the euro. We need them to participate. We need a global economy. With your for me, biography and heritage with the is allith oracle of these games if all of these gains are going to capital . Labor has been out to lunch for over a decade. Du invision labor finally getting its fair share . We have a problem. A lot of those jobs that were high wage are being automated away. We have to do something very different to address that. We have not taken that on in a big way. I earlier comments about construction and trade jobs you agree that that is a short answer . Longterm is education. Skills gap. That is what is most disturbing. At a time when we have record low Interest Rates and stock markets are at record highs, housing it coming back. We still see income inequality at the widest it has been in decades. Been writinge has about this for 25 years. It is now happening. No one took it seriously. It is a major problem. We have to create new segments of jobs and educate people differently. The educational system is set up for an economy of 50 years ago. What do you do for a guy with a High School Degree . Secretary rice has been a leader on this analysis. Republicans push back and say there is a trickledown effect. What is that new economy that will him fully the millions of americans longer than 26 weeks . It is more like a model of germany. You have some colleges and a lot of trade schools. So you are saying more trade schools . A is part of the solution higher minimum wage or will that create some problems for a lot of companies and affect their bottom line . I think it would be helpful. It only affects about 50 million people. As long as it is nine dollars or so, the long time weve the last time we did this, there was no job loss. I understand the concern. Is there another way to go about it . There was a column in the times over the weekend about a better way to approach this being an earned income tax credit. Instead of taxing corporations by increasing minimum wage. That is another way to get there. If you look at the history of increases, there is no evidence to suggest that. 2000 seven, pennsylvania did not increase in new jersey did. Two neighboring states, no change. Over time that it helps quality of life. Every time you raise the minimum wage, it is in adequate. It does not keep pace. That is not an argument for not raising it. You should raise it some. Not as much as they would like. 10. 00. 9. 50 or that is a big change for the people affected. When i look at the challenges that you have oracle has, entry level for a coder out of college is what . Is not relevant. The minimum wage is not even relevant. Is there a multiplier to your world . World discrete and separate from some guy in toledo who wants to make 14 per hour . I am competing a bounce against engineers all over the world. They are all very mobile. Is delusional to think that Silicon Valley well that is why they push for immigration reform. The jobs act really kind of it passed, but it fell flat. People cannot see that multiplier effect. That is separate. I think that immigration would be good. You need specific skill sets and population growth. That is what is wrong with japan. People comment like wheel have and what you need specific skills. Really interesting. We could go three hours on this. I do not think the multiplier is as great as a lot of people would believe. See bloomberg west at 1 00.