Index. The retail earnings day. After the bell, dreamworks and sam adams. Beer in retail. We will get to that in a bit. Commoditiesnd continuing. Futures lighter. Nymex crude, again, stable. Moving onto foreign exchange. We look at the yen at the bottom. A huge deal. That is a weaker yen as the government manipulates the room ramimbi. The gamimbi euroyen 140. 78. This is the dynamics of what revenue is doing. The dynamics are bringing that found the income statement to cap profits are doing. Looks like a disappointing quarter for home depot. Missing on earnings and revenue. That means revenue fell about two percent. Overall, comparison comparable csales. Is the fullyear Sales Guidance also lower than estimated coming in at 4. 8 . The company was looking for five percent. Obviously home depot has been hit with the weather issues. Spring very important to see if there is payback. The Fourth Quarter does not look great coming in at the low end of estimates. Rbc Capital Markets saying whether had a huge impact. Or, foreshadowing something more to come . The vast amount that i use home depot you painted. I painted instead of psychological therapy. I will say there is a home depot in the basement of the building. I love going in there. I know they missed on this particularrter quarter that earnings have been growing very consistently. Show tough quarterback consistent growth. Use of cash as a theme. We scour the papers this morning and the web. A busy front page this morning. I will start with whatever with all over the front pages, the big Corn Exchange has gone offline yet again. Based in tokyo. The bitcoin falling. Down from 1151 in early december. Bring it into look at bitcoin. Here is where matt miller bought their. I think you bought twice. Matt miller, i have been busting his chops for months. I learned a lot. 500. Is the rollover under there is a difference between the intellectual knowledge that is a benefit from discussing Something Like bitcoin and legitimacy. China says you cannot use it, russia says you cannot use it. You know this is important firms,jor wall street john norman and jpmorgan putting out a published Research Report on the letterhead. Hat gives it a veracity we have to point out the Financial Times saying today that there was a document let document circulated that actually lost 744,000 bitcoins. Ix percent coming from the Financial Times. That was the twitter question of the day, are you still a believer . Are you a bitcoin believer . Justin bieber. Number two item on the agenda today, j. P. Morgan chase preparing to cut 2000 or more jobs according to the Financial Times. They made the announcements today. They would be in the Mortgage Business where demand has plunged. Jpmorgan cutting 13000 and 15,000 positions. They agreed to a record 13 billion settlement. Regulators to evolve allegation resolve allegations. Interest rates have gone up. You saw the same story at wells fargo. As rates go up, people are not refinancing. Interdependencies of what is going on. I look at rbs with 30,000. Really beginning to add up. Working all. These archives making loans. Is thethird item following, samsung unveiling the newest smartphone. S5 has a fingerprint model and a larger screen. Attempting to keep highend users from by hank smartphones. It is dust and water resistant. Water reason to resistant. Droppedlways almost my phone into places i do not want to share many times. This is critical. Quotes in theil shower . No, but i can now. Look at the commodity quotes from the shower. Thatould point out Caroline HornCaroline Hyde at of london will speak with the blackberry ceo later. We are going through the release. It does look like sales came in 6. 83 billion. In six poin the real number you need to know is at the end of the Fourth Quarter, almost 47 million. Tmobile really having the price war. It has not been the same since Catherine Zeta jones left. We wanted to bring you someone smart on the market. Strategist. Quity he has written a very nuanced note within the enthusiasm of dallas 16,207. . I amtowable stowable, but i think we will struggle through volatility. Sentiments become euphoric again. I am dazzled by how unloved the market is. Inflationadjusted Dow Jones Industrial average to show how far we have come, going back 10 and 20 years. Do you look at that and say it is a peak, or finally back here ready to rake out to a new high . Two and a quarter years ago where wea report change the view to more of a trading environment. We still think we have a 35 years ahead of that. In 2013. Driven by the Energy Revolution. Driven im mobility. Here is my concern. Last year most of the strategist did not think we would be up 30 . This year, every single strategists is above the current market. Wonder what happens when everyone is lined up on the same side. As a result, do you worry about that consensus . Even though people are up, they are not up aggressively. I want to get this and quickly. Michael purvis talks about flows of money. Nothing like flows of money and that makes stock prices go up. Not necessarily. We had a market that trip all off the bottom. Very little money coming in. Coming for mergers and acquisitions. All whole lot of cash. Will dive into this in the hour. We certainly will. One of wall streets best secrets has been revealed. Talking about the identity of the person behind the twitter account gs elevator. Giving comments from the Goldman Sachs elevator. They are neither from Goldman Sachs nor from the elevator. Do you remember some of these lines . He basically made it up the skype. You ready for this . Some chick asked me what i would do with ted million dollars. I told her, i wonder where the rest of my money went. Honest, there is no way your guess is as good as mine. Absolutely crazy. We all thought it was true. I am gullible. Twitter. Oup elevator twitter. Ot on i thought it was some guy from the nsa first and only. The New York Times determined this gentleman is from texas. Anded to work for citi move back down to texas and was his way of having on. And a book contract. Follow your passion. Sometimes it actually pays. Home depot just that with earnings. Sales forecast. Very heavy retail week for earnings. Television, streaming on your tablet, phone, and bloomberg. Com. Good morning, everyone. Coming up, this is very cool. Victor cruz. I do not follow football, but one of my favorite players. Wide receiver, the aircrews. The same victor cruz who does the salsa dance every time he scores. I took lessons for years. You learn something every day. We are going to go with home depot. Earnings as well as revenue estimates. The real number is net income down one percent. The first time in 15 quarters that there was a decline in net income for home depot. This is the week for retail. We find out just how about the Holiday Shopping season was. Macys coming up 8 00. A Retail Consulting firm, we love having you as a voice on retail. What are you expect in gecko a very tough season. The consumers in a major slow down. When you see walmart at 11 of u. S. Sales, retail is lousy. Continue. You nailed the season. Howard came out and said this is not happening. Preks you said discounting would be the theme of the quarter. You were right. Why did you predict it . Medium Family Income of 57,000. Alfred e one. 77 of new jobs, you do not have to be a Rocket Scientist to understand that 80 of america is in recession, all you have to do is look at the polls, wrong way or right weight. Right way. Coaches going to be lousy also. As far as look at the Department Store business. Sears in the. Pennies in the. Coles in the. Need i go further . Amazon not . They are sucking up all of the business. Here. Ave to make news jcpenney rolled over again yesterday under six dollars. Can they survive . No. From 19th or billion to 30 billion. Lex away from your work, looking , looking more at the financial results, what would you advise a sulfide about your world right now . I was on the show. I said do so its a long time ago. Would they have a ceo who went completely nuts and completely destroyed the company. Everything he did was insane. Ovitiwitz, thankd you. We will be joined on the future retail security. Lots to talk about. Bloomberg surveillance. Good morning, everyone. With me, adam johnson. A correction of the home depot earnings. Earnings came in at . 73 per share, not . 67. In terms of earnings, it was a beat at 73 cents. I should point out that revenue still came in light and income still did fall i one percent. Forth, sometimes mistakes happen. But her use of cash and Share Buyback. Getting to the morning must reads. Alix steel has that. 40 year track record of investing esalens excellence. What do you have of . I am tired of cleaning up your beep. Basically a meeting where they went after they each other. It out into the press. You and i have both worked on wall street. For 40 years there has been a rally in bonds. All of a sudden, the bond rally stops withdrawals. Trying to figure out the future. Makes people very testy. Two different mandates of pimco. Desks are right next to each other. They have two very different mandates. The tension in the under performance in the bond market managing money and mohammed managing the company and doing a much larger Economic Perspective as well. I am not willing to say who is behind doing more in equities , but as adam correctly said, sometimes you get off your game and natural tensions occur. He has never been wrong. Would like to be on whatever drug regimen you are on to believe that. Called espresso and lots of it. Take us inside the city. When markets turn, and you are making a call to the upside, what kind of pressure do you get . You get some. Were not trying to trade on a daily basis, which does happen if you are sitting on a trading desk. I am not talking 24 months. But 612 month time frames are what Portfolio Managers care about. They do care about longerterm. Though gross gave an acclaimed speech. Very emotional about underperforming. Then you come back. I just want to point out the big number right here. That is bitcoin. Adam johnson trashed it. It is a lot bigger than me. China trashed it. Russia trashed it. Finland said it is a commodity, not a currency. Likes not the u. S. Not the u. S. Trim theel looking to military budget. We will talk about that coming up next. Good morning, everyone. Bloomberg surveillance. Oliviam keene with sterns and adam johnson. Were watching bitcoin. Taking a long after a tough night. We will catch you up on this. And commodities. A little bit of a bitcoin feel to it. Eurodollar 1. 3748. Thisrveillance data check morning. Again her and the loser. Rex a record day for the s p. Ebay a winner. Of paypal wanting to nominate two boards, to individuals to the board of directors. The losing side, sears and jcpenney. It is in the. Crapper. Up five dollars. When a stock its below seven dollars, people are forced to make decisions. A lot of people are not able to own stocks below five dollars. Do we have . I will tell you what, announced chuck hagel plans to shrink the army to preworld war ii levels. The Defense Budget for fiscal year 2015 just under sixbillion compared with hundred 82 billion for 2014. How will the proposed military cuts affect the u. S. Economy . Incredible. The Senior Defense analyst for bloomberg government, which provides stated news, analytics about the Business Impact of government actions and joins us from washington. On anyou for joining us early tuesday morning. This is earth shattering, the fact that we can have these cuts. Talk us what this means for the Defense Sector as a whole. Is quite asthink it earth shattering as you may make it out. The numbers were agreed to, modified a little bit, so it is not quite as much of a surprise. But if Defense Budget is coming down. The industry is having to adapt to this. So far the big primes, they the revenue. It is an adjustment, but not something people did not see coming. If you look at how the cuts percolate through, activeduty military personnel will be traced by 13 . Reserve force will decrease by five percent. What is curious is the special forces, the group that captured mr. Bin laden up six percent. This about the u. S. Becoming more targeted military . Us about bruce for proved force . I think that is right. Back in 2012 they said we will not size the army anymore for the longterm stability operations. We just do not want to do these anymore. The army and marine corps can come down in size, but at the same time im a the targeted operations will be increasingly used to deal with the kinds of enemies we think we will have to fight. The large land army is generally going to be a thing of the past. Whicvich. Lesko im in shock for someone like lockheed martin. I do not hear as much about defense contractors or is people that make ensco fast anymore. I saw the note that are area Aerospace Analyst put out last night. He called the cuts more rains, less bronze. They say about the politics . Can we get this done . This is pretty much agreed upon. Do you agree with that . Yes. I think both sides, at least from 2015, they came to a number and can do it. You used to have, particularly on the republican side, a firewall protecting the pentagon and intelligence community. That has collapsed. The tea party has figured out the pentagon as part of Big Government that they do not like so much anymore. I want to get your take from Neil Ferguson writing over the weekend. Mr. Obama supporters like Nothing Better than to portray him as the peacemaker to the warmonger. People havemore died violent deaths in the middle east during his presidency. Is this the legacy . Depends on how you look at it. Yes, people are dying of violent deaths in the middle east. The question, are americans involved in all of that . There is turmoil in the region. That is killing people. Some of it is because bitcoin has been overthrown. Certainly a more volatile region than when the president took office in some respect. Less americans getting shot at at the same time. When was the last time we saw a defense secretary have to effectively remake and redefine the role of the u. S. Military to the extent that the secretary is having to do right now . I think you have to go back to the last drawdown, which started in the late 1980s and through the end of the first bush administration. The cold war ended. Away. Ent the u. S. Military had to figure. Ut what it is going to do now how did the Veterans Administration respond to that . Many Lobbyist Group about people. Not digital this or that, just manpower, the billion divisions. How will they respond to what we have heard in the last 48 hours . You are re hearing about benefits cuts. Veterans groups will scream about that. They will fight that and push back. The reality is personnel costs are getting very high. If you are bringing the topline down and do not curb the personnel cost somehow, you start to squeeze out equipment and training. Rex a lot more from this. Look for it from bloomberg government. Synthesis in washington. I want to get your opinion on bitcoin. Here is a tweaked tweet out right now. Keene, no one cares about bitcoin. Michael mckee, no one cares about bitcoin. It is a great lesson for mp all. I am honored to get your opinion. Myit is like reality tv and perspective. I do not write about bitcoin, do not have a particular view on it. Something that is thoroughly unregulated by any central bank makes me nervous. A slight marks of theory without Theoretical Foundation. There is no foundation underneath really good ideas. Where are you on this . I am not sure what you just said in plain english, but bottom line, i think there is a farce. No central bearing house. We just found out this morning has six percent of this effectively gone missing. That is part of the problem. That is the twitter question of the day. Are you still a bitcoin believer . You can tweet us bs urveillance. Calmed down. Take your medicine. Coming up, we will hear from the google chairman, eric schmidt, on the fight with apple over operating systems next. Streaming live on your tablet, phone. We are fired up. In way have another espresso, please . Good morning, everyone. I would love to say it is a beautiful spring morning for the to date. The twoday period this weekend. Adam johnson with us going over u. S. Canadian olympic hockey. Enjoying a canadian vick to read. Delay a vote on a new government until thursday. In an effort by officials to move quickly to fill the government vacuum so they can seek economic aid to hold off default. 35 billion to stabilize the country. Audience for the closing ceremony of the olympics. 15 Million People tuned in. That is down 29 from the audience of the closing ceremony in vancouver. The nightly audience was down 12 on average. Sits down with john boehner for a closeddoor meeting at the white house. Higher minimum wage and overhaul to immigration are among the have. Sions they will those are your top headlines. You wonder if they have a beer . They have that photo op beer. Probably very stage. Talking last night discussing an apple and google rivalry. The fight between apple and google over operating systems is producing enormous reductions in the price of phones. There, theere not apple phones would be more expensive. Consumer value is enhanced. I still think iphones are pretty expensive. The low end at phones. That did not cut it in china. Foring god thank god the at t subsidy. It cost me 200. I cannot even afford to get a new ipad because it is too expensive and cannot up read my software because i