Taperthey decide to again, what kind of havoc can it read . A bloomberg exclusive, golden said meeting. The mullet, business up front and party in the back. After the bell, qualcomm, facebook, party on. Party apparently, facebook. We will speak to cory johnson today on the unique characteristics of yahoo s Earnings Report yesterday. Lets do a data check their it i want to get through this quickly because weve got an important chart. Futures continue to advance. , theentral banks blank markets like it. On to the next green screen, litmus paper. There is the argentinian peso as they spend money to protect the point 00. T it is cold in new york city this morning. 8. 00. Peso, argentina, two days ago, they 174 million to support the peso and they increased the amount to 800 million. Emotional target for the market right now. Locked in the newspaper this morning. We looked across the web. Here is scarlet fu with the front page. All over the front pages obviously was the state of the union. I had of the big speech, the president said he would use his executive authority ahead of the big speech, the president said he would use his executive authority to raise the minimum wage for federal workers. Talking about how he will go it alone without congress. A big theme in his speech. Today he will be at a cost go in maryland selling his plans. The other big seem was of course income inequality. Here is the president from last night. Today after four years of economic growth, corporate profits and stock prices have rarely been higher and those at the top have never done better. But average wages have barely budge. Has deepened. Upward mobility has stalled. The cold hard fact is that even in the midst of recovery, too Many Americans are working more than ever just to get by, let alonto get ahead. And too many still are not working at all. One of his prescriptions is the creation of a new treasury savings bond for workers you tell me what black a new acronym. Protection. Ipal how the government will be delivering on that. I thought it was fascinating. What else do we have . We wanted to get some company news as well. Shares of yahoo down more than 3. 5 in the premarket. The Company Forecast firstquarter sales that trailed estimates. Marissa mayer clearly having some trouble steering yahoo around. The display ad business, their breadandbutter, keeps falling, and their stake in alibaba it has been a savior but sales are slowing down as well. Quarter,51 quarter on still the sales of ebay and amazon combined. It is slowing but it is still giant norm is when you compare it to any company in the world. There was a party in davos that was a metaphor, eight miles away at a new hotel. It was trouble getting to it. You got there. It was the usual baloney. So hard. Very harsh. Marissa look lovely. But they are struggling to find an identity, seriously. Eight miles away just too hard to get to. Core came out with a note saying they are cautiously optimistic. The selfserve demandside, which is relatively new, could be a positive, but it is just too new to say. Yahoo is still the most visited site on the internet. More than google. They just cant seem to monetize it. Cant get marketers to pay up. The stock is falling in the premarket. Reportedbank fourthquarter loss on a big decline in Investment Banking, specifically fixedincome trading. We got hits from the company two weeks ago. Bankers will certainly feel the pain because the news is that Deutsche Bank is cutting compensation for employees at the Investment Bank by 20 three percent. This is really the theme we hear across the board. The compensation ratio, four year average, between 45 46 , and from goldman, and it was 37 last year. It is an acrosstheboard issue, which raises the question where does the talent go to get money. Talent is the most expensive part of the cost structure. Are they cutting back on their hours . We will pay you, but we will give you vacay days. They are clearing the markets a little slower than the banks in the united states. Carlos gutierrez, former commerce secretary and had a huge impact on the bush administration. Kellogg inears at grand rapids, michigan. I still love seeing that. Romance of another time and place. Looking for the toys in the box. Battle creek, near grand rapids, a magical place. Commerce, secretary have you ever put through an executive order, ramp policy through congress . We did not have to do that. Some things we did, like the a, where wend noa have direct jurisdiction but not things that would have to go to congress. What would be the significance of the president going along question alone . I think the ideas get smaller. Whatever he does alone i think would be a small idea because if it were big it would go through congress. I think ideas and initiatives are getting smaller and smaller. One big idea he is still working on his Immigration Reform. Here is what he had to say. If we are serious about economic growth, it is time to heat the call of business leaders, he the call of business leaders, faith leaders, law enforcement, and fix our broken immigration system. When people come here to fulfill their dreams, study, contribute to our culture, they make our country more attractive place for businesses to locate and create jobs for every body. So, lets get Immigration Reform done this year. John boehner and the republicans actually did applaud when the president urged for a fix of the immigration system. What is the path ahead for a bipartisan compromise . I think it is very close. This idea of citizenship is a red herring. It is not real. What we are looking at his, one side says 13 years for citizenship and the other side says we already have a pathway so you cant really define how much time it will take, just go with the process and get to the back of the line and dont cut in. Of the details. But they are making it into republicans dt want citizenship. Can i rip up the script . I thought it was rude to you and many other americans, your Republican Party is parsing explain it to me, scarlet come and not citizenship but have citizenship. Here is the thing. Haveaid when folks get legalized, they should follow the process and they should not cut in. That has been the principal on both sides. The president is saying 13 years. That breaks the principal because who knows what will be in 13 years . That is the only difference. We only have a pathway to citizenship. We dont have a pathway to legalization. I sat in davos with a guy a lot like you who says he is a ceo. In america it has an asterisk next to it because he is a minority but when he goes to he is an davos american. I think we go through it every single generation. History takes over and eventually, you know, it wins, immigration wins and diversity wins. But we go through this every time. We dont learn from history. Every generation, we dont learn from our history. Carlos gutierrez with us. Matthew dowd will join us intimate. In a bit. At ts battle with tmobile may be taking its toll. The second largest u. S. Wireless carrier rejects profit for this year will be at the lower end of estimates. At t offering discounts to hold onto market share. Tmobile gained more than 2 million subscribers in the last mind months of 2013. The fda says aleve may carry a lower risk of cardiac risk. It has to do with painkillers known as nonsteroidal antiinflammatory drugs. The fda has been evaluating studies since 2005 when it became an issue. Jpmorgan has gotten several bids for its commodities unit and could get at least 2 billion in the sale, according to people with knowledge of the matter. Blackstoneidders, and the quarry. Jpmorgan could choose the winning bid sometime this week. A really big deal. Banks offloading their commodity business. Goldman sachs are going to hold on Morgan Stanley is also there you go. Are Luis Gutierrez and matthew dowd will join us as well as we continue to look at the economic politics in washington Carlos Gutierrez and matthew dowd. The cold across the south. Austin, texas, 20 seven degrees. This is elizabeth city, North Carolina. That is not stand, it is not a dune. Stunning. Bloomberg surveillance. Good morning. I am eager to work with all of you. America does not ban still and neither will i. Whenever and wherever i can take the steps without legislation to expand opportunity for more american families, that is what i am going to do. Pageantry ofand the state of the union. I spoke to my colleague Mark Crumpton and we both agreed it is a goose bump moment when the president walks into the chamber for the state of the union. Last night was very different the word must way out of fashion, saying it exactly four times. Dowd on the recalibration of the Obama Presidency. He braved deep, snow we were dan washington, d. C. This morning to be with us. Carlos gutierrez with us as well, former commerce secretary. Secretary gutierrez moments ago talking about little ideas coming out of executive orders. Does the Obama Presidency become a little presidency . Well, if you look at this, this is the incredible shrinking presidency actually. This is the weakest position he has ever been in going into one of these beaches. If these speeches. His approval numbers are in the low 40s and people do not trust them on the number one issue, the economy. And he does not seem to be able to get anything done with congress. What he is doing is all small all, all small things. Singing the Frank Sinatra song, my way, which is if people dont go along with my big ideas, it is fine, i would ditch them, and now i will roll to the smaller ideas and do it my own. What it says is, he can still do things as president but it is a much smaller presidency. The republican response fascinating. A congresswoman from Washington State that essentially, to be honest, no one knows. She just had a baby. She comes out. Working fulltime. No leave for her. What should be her response and the Republican Partys response to the diminished presidency . It is interesting. I thought she did very well. I dont think there was a lot of substantive what she said but her personal story is great and how she said it was great. She came across as a very appealable. I think the republicans will do a four corners stall. I think they believe that they dont need to come up with anything grand to be successful in these midterm elections. Come to thathave conclusion. They have advantages going into this. They know the American Public is in the place of change. They dont want the status quo. I think they say, if we dont make mistakes we will be able to win these elections. Tom, what i think is likely to happen this year, the likelihood is very little in the legislative grants. Cathy Mcmorris Rodgers of Washington State who did the response. Is what it, that was. Executive action was the focus. What does that say about the midterm elections . Obviously these speeches given in these midterms, everybody is always looking forward to these things. The likelihood that the president s party loses seats is very high. If the president goes into his second midterm the second midterm of a second term and his Approval Ratings are in the 40s, they lose seats. I think what the president is trying to do is, one, show he can do action it is a two edged sword on the executive action model. One is that i can do stuff and i am strong, that is positive. But the other part is a finger in the eye of the republicans, saying i have given up on this bipartisanship idea. And it seems the only remaining bipartisan thing that he is actually seriously attempting to do is Immigration Reform, and whether or not that its done he gets done will be all about the midterms. The other idea he has potential action on is immigration. Carlos gutierrez, former commerce secretary, you talk about how the president is limited to small ball but there are some big ideas he did bring up. What were you impressed by . Two things. One is Immigration Reform, that i agree with. Emphasis ons his natural gas. I never heard that. He usually has stayed away from fossil fuels. It was a little puzzling because he said natural gas, and we can refurbish every gas station and make it available for automobiles he really talked about the infrastructure buildup, trying to get the refueling stations. This would be a huge project. Then he went on to criticize fossil fuels. About solarking again. No consistent messaging. I think he was trying to walk a fine line. I found it to be a centrist speech. I found myself agreeing with it. Not offended he tried to find a Center Ground on a lot of things. Matt, do you agree . Was it relatively centrist . Thatat it was was a speech he had a delicate balance. He could not stand up and say the state of the union is strong and we are doing great, because he knows two thirds of the country thanks we are off on the wrong track. He could not say the economy is booming when the majority of the country has not seen any impact in a generation, no real impact. He had to basically say things are good, but we need to make these changes. Things are going well, but we need to take a slightly different direction. Today, in the end tomorrow, the next day, this speech is not going to matter as much as what he actually does in the next six months. I think the American Public is tired of the oratory and the words and they are going to say, would you going to do, would you going to do . It is all about action. A few so much. So appreciate your morning appearance. Matthew dowd, our chief political analyst. The action is coming here to new york this weekend. Coming up in the next hour, we talk about the super bowl with the owners of the new york jets and the new york giants, responsible for bringing it to the new york area. Twitter question why do you watch the super bowl . Halftime show, commercials, actual game . Tweet us. It is football, alix. We can also convinced help americans return to the workforce faster by reforming Unemployment Insurance so it is more effect it in todays economy. But first, this Congress Needs to restore the Unemployment Insurance you just let expire for 1. 6 million people. John boehner, not happy behind the president at that shot at the republicans. A lot of different perspectives. m tom keene scarlet fu and alix steel are with us. We have a morning must see. It comes from Goldman SachssMichael Kelter in its quarterly restaurant survey. High, buty hit a where the spending came from really counts. Those making under 90,000 are the ones actually spending more. You saw a huge jump in the Fourth Quarter for those making under 50,000. He said the idea that this thep, the middle class, payroll tax increase from 2013 has worked his way to the system and those people are spending more. What struck me is how different it was from what the president said in the state of the union about inequality. And those over 90,000, stagnating. Underwth is for those 90,000. The caviar becoming more expensive. The president needs to talk about those who are struggling, but at the same time hes got an economy that is doing better. Why cant any president taking the relapse . The problem is when he speaks about that, there are some indicators to say the economy is doing well but the bad indicators are that the majority of people have not done well over the last 20 years. That is a problem. That is the conflict the president has not been able to thread the needle on. Carlosgutierrez, gutierrez, would you make of that question mark is it possible the middle class is going better than we think . Numbers show they are spending more money. Looking at 14, it is supposed to be a great middlemarket year. But people are will worried about health care costs. The big unknowns. Is it going to go up . Goldman also says millenials are a huge driver of the economy. Matt dowd, thank you so much from washington. Apple, we will discuss that next. Selling record numbers of to keepbut not enough investors happy. The former ceo of apple joins us. Morning. You are looking at a live shot not at new york city, not of boston, but elizabeth city, North Carolina, where it is snowing. It is clear that a little bit of snow in the south can do a ton of damage. What happened was, a storm that left two inches of snow in the deep south paralyzes the region. It paralyzes d. C closed 1000 car accident in atlanta. Massive traffic jams and driver stopped on the road for hours. Many spent the night in their cars. Others ended up at home depot if they could make it. They opened two stores overnight for travelers in georgia and alabama. Also stories of kids being stuck at school. We cannot complain about our commute now. We just added on the next to couple minutes. Stocks, bonds, currencies, comedies. Futures flat, 10 year yield going nowhere. The euro going nowhere. Nymex crude elevated. Fede the quiet before the decision at 2 00 p. M. This afternoon. Bloombergh to television and radio on the decision. Apple sold in record numbers of iphones last quarter but the stock fell to a low so investors were not impressed. They missed estimates. 50 million iphone sales apparently not enough. Apparently when investors pretty happy with the slump because carl icahn bought another half 1 billion worth of the shares. The question is how will apple look past the iphone and, with the next big thing, even as it faces calls to use its cash and return some of it to shareholders . Me is former apple ceo Josh Scully John Sculley come in now with pivot. Is carl icahn an agent of change for apple . I think apple is a much better shape than anyone gives it credit for. I was on this show last april when apple stock fell below 400 and i said, he pulled dont understand how strong this company is. Then it went up to 550. I think it will go right back up again. The situation they have now, they are just beginning the rollout and china. Only 16 cities in china with