The university of Michigan Confidence number. How are we all feeling . Lines and then something to note, secretary of state john kerry arrived in london. He will be meeting with his russian counterpart, foreign minister Sergei Lavrov. As you know, there will be this vote on whether or not crimea will secede on sunday. We had a couple of days of good feeling and it reverses as we go into a nervous weekend. Futures go up, but look at the 10year yield, down to 2. 78ish and a lower yields and higher price. The euro comes back, 1. 3888. Next screen. We will get to the ruble in a minute. There is the 10year yield, 9. 66 , surging in russia. Ruble and stronger yen. It shows you the risk feel. , eightsian bond index percent has been the average. They do a little bit better and this is just the move up. And here is the search as Russian Troops on the ukraine border. As people bail on the russian bonds, the yield goes up. We are following the bonds more than the currency as the russian government really intervenes in the currency market. Of course, Malaysia Airlines front and center. Lets get to the front page. Story. O again with the the latest headlines out of malaysia right now, the government is looking at the possibility of pilot and crew involvement. The defense minister said the police have not searched the pilot house. They say 13 countries continue to work with malaysia on trying to locate Malaysia Airlines 370, and he cannot confirm there is no hijacking as well. Youve got some interesting headlines out of reuters. Indias navyrting is searching far west from where the plane was last reported because the flight was following between navigational points last plotted off of malaysias northwest coast. The geometry of this is from malaysia, down to the tip of singapore, go west across the eastern indian ocean. The u. S. Asked kidd will be there uss kidd will be there and then the navy will go east across the indian ocean as they search for flight 370. We are in the search for some common sense on this issue that is transfixed the world. Richard falkenrath jones is now. Good morning. Us now. Good morning. I sighed for the media frenzy and the genuine care, what is Richard Falkenrath focused on . First, the data we are getting is fascinating and not and not yet confirmed and somewhat contradictory. Something i learned from investigations like this is to be careful to cooperate facts. But if the data is right, particularly about the manual disablement of the beginning is ams, what it tells us human being did it purposely. It shifts to a number of important questions. Who he or she was and what was the motive to possibly do that. It strikes me that this is too complicated to be a suicide attempt. In aviation history we have seen pilot to attempted to commit suicide just by crashing the plane. So some other plot must have been afoot. We got a further headlines, and lets bring them up. The defense minister in addition to saying the police have not searched the pilots house they said they will search his house if needed. You talked about an individual being involved. There is question about the confidence of the government. My morning mustread talks about malaysia being long hobbled by a political poultry culture that puts the ruling partys needs over the people. He says the bungled search made manifest the consequences of this cynical bargain. The you see the malaysia government involved . No, but i do think incompetence is in play. But it is too big a plot. There is nothing in their interest. Employee ofis an the airline, they would have been involved in the sense the person would have had to send pilot certifications to the government. Richard, you served in the white house. Is this a situation where the United States in america assist the other nations as a conduit for malaysia . To washington and washington distributed the information to the other nine or 10 nations . We both investigate independently and assist other competent authorities that are doing so. In this case, that would include malaysia, but it is not just malaysia that would be receiving u. S. Assistance. The chinese, the vietnamese, and they would all, be, in the extent they were involved in the search, would be receiving information from the u. S. At the u. S. Was learning in the course of its own work. They are also going to be a sensitive part of the investigation that they will not be informed of, the vetting of the manifest on the flight, and that would be done by the counterterrorism and intelligence personnel using sources and methods we will not necessarily want these other countries to know about. That would be held privately until there is a determination made that it needed to be shared for some specific reason. We want to point out to viewers that malaysian officials are holding a conference trying to explain were showing scenes. Based on your experience advising the white house and then again advising the Mayors Office in new york city, is there any sort of precedent for entional hijackers potential hijackers taking this long to announce why they have done what theyve done and what they want in return . It is a good question, adam. Hijacking situations are individuals acting alone and not as part of a larger conspiracy. Very few of them result they are quickly addressed. So the hijacking becomes known. The scenario here, the precedent i worry about is United Airlines flight 93, which you recall was the fourth airplane hijacked on 9 11 and crashed in pennsylvania. What i wonder here is we are deep into speculation now, so lets be clear. A hijacking or even if someone was attempting to use the aircraft as a weapon like on and somehow the pilot the number of passengers prevented it causing a crash at some point. That is the closest that comes to the top of mind this morning with a fragmentary data we have. With all the new developments we have been going over, Malaysia Holding the press conference saying the possibility of pilot and crew involved. Knocked down some of the crazier theories. What can you say that this is not . Of crazyare a lot theories. Conspiracy theorists are coming out of the woodwork. We can pretty well say through satellite analysis that the aircraft did not land at some airstrip or airport nearby. Lost isnt like a scenario where they managed to land and the people are safely ensconced on some beach. You can will back out because we know where all the airstrips are in the area that can handle a jet of this size. So you really are down to some form of crash. In the ocean somewhere, and it needs to be found. The scenarios, none of the other ones can be ruled out, which have to do with who did this and why they did it. It is too early to say and the data is to fragmentary. Thank you so much. Richard falkenrath, former White House Security adviser, joining us with the latest analysis of the Mission Malaysian airlines jet. A couple more stories i wanted to highlight, including bp, it can once again compete for u. S. Contracts, including for oil leases in the gulf of mexico. Regulators had barred it from the contract after the oil spill. At one point, bp was the largest miller in the gold coast. In the gulfriller coast. A shape up at barclays. Barclays preparing a radical overhaul and it could lead to thousands of job cuts as well. Shareholders not happy about rising cost and falling profits. This the previous strategy at barclays was fragile by design. This book it is eagerly anticipated we will talk about it in an hour from columbia kauffmanschool, professor of finance from columbia, find out with his book fragile by design. Where well be banks be in five years . It is hard to say, but a key variable that will determine that is the politics. We have seen, after the crisis, of course, the pendulum has swung very far against the banks. My prediction is we will see is swinging back in the other direction. Look at the dilution of the volcker rule that we have seen. By the way, i support the dilution but people are going to discover that they really want to have a functioning banking let me cut to the chase. You are columbia business school. Are you telling the young lads and lasses to go into banking . Is your future being smart on wall street or should everybody work in manufacturing . From the standpoint of where we are enrollments are be declining and the students are part of the backlash. They are not particularly excited about it but i think it will change. Abouthave a lot to talk here on the politics. I love the idea of, hey, it is all about politics. Fragile by design. Way too long for one week and read. Lets go to company news. Electric in general south africa. The company will provide state on transnet for diesel locomotives. Ge will supply the 465 locomotives to expand the rail capacity. No financial terms were available. Warren buffett becomes the worlds second richest person. The Berkshire Hathaway chairperson network increased to two 63 billion, putting him in second place. Carlos slim helu seen his fortunes shrink as his companyares of tumbled. Mark zuckerberg calls president obama to complain about nsa spying. Angry about report to the spy agency can disguise itself as facebook to gain access to users computers. He says the nsa needs to be more transparent. , amazon prime will cost you more but are the perks worth the extra bucks . We will talk about it. This is bloomberg surveillance. Bloomberg television and also streaming on your tablet, your phone, and bloomberg. Com. We are back with professor chart professor Charles Calomiris momentarily. Coming up on Bloomberg Television, an important interview with the world bank before the spring meetings in april. Kim, now with the world bank. Great expertise on health care worldwide. This is bloomberg surveillance. Morning. Sy friday im tom keene with scarlet fu and adam johnson. Up go the prices. So much for no inflation. Amazon shares are moving a little bit higher this morning. Raising the price of the prime membership, which counts roughly 20 million subscribers. Amazon never confirmed it. The price was increased by 25 , to 99 a year. It had been at the same pricesensitive began the program nine years ago. The surprise really is it was a little less than what analysts had been looking for. The company had warned it could go up by as much as 40. A team over at isi comments it might boost cash flow by only about two percent. Because they are assuming it will be a 10 attrition rate. Theyre looking to raise the 2016 adjusted earnings before taxes and all that i two percent. What i found interesting in the note is they took a survey and they found prime members shop amazon 25 times a year and spend about 1200. Not havedoes membership, probably shops on average four times a year. I have been thinking about getting it. I have to admit. People have it . Am i the idiot . I am the other idiot. Things are much more convenient. You dont have to drive to each lace but amazon is looking to make up about nine percent of the retail market. Nine percent of u. S. Retail. Fromarles calomiris columbia business school. Do banks have Pricing Power . When is the last time i had a fee increase at a bank . Depends on the kind of market. And the kind of account. Obviously banks have some Pricing Power in some regions, particularly in the middle market. England, and new you are a mediumsized company, you have very few options in terms of borrowing. But if you are in new york you have a lot more. What can thanks learn from Companies Like amazon and cost go in retaining Customer Loyalty . That is an interesting question. Banking is still a relationship business. Banks that know how to give customers an extra service lets say, td bank in new york. I am a customer. I have a few other bank accounts. But they are open longer hours. They seem to care about being there for me when i need convenience. Person . U really need a for deposits, you just the wood on the iphone. That is the big thing everybody has been saying for the past 20 years that has been wrong. Everybody has been predicting the demise of the branch. To bring it back to amazon, to me, again, it shows Pricing Power. We will talk to a guest later about it. Why cant they go up 50 . They have to test the market. But they dont want to turn away potential prime customers. They already captured the highend, and there were surveys that showed most people would hang onto their amazon prime membership even if the prices went up by 40 a year. And the only went up by 20, so they hang in there. We will talk about it the next hour as well with someone who is very wellversed in the art of pricing. It is a dark art am a when it comes to pricing. A dark art. Fu er advocates scarlet consumer advocate scarlet fu . T is a bright art coming up, inside the home of the world famous cronut and what the chef is cooking up in the next new york student new york city food craze . That is a live shot . Heather is down there she accepted his mission. Shot. Is a milk and cookie that is it, lower right corner. This is bloomberg surveillance on Bloomberg Television, on your tablet, smartphone, and bloomberg. Com. Good morning, everyone. Here is our twitter question of the day. It is a friday question. How do you pick your bracket for march madness . Me . Over a beverage of my choice with someone who knows less than me. No one knows less than me. Ill give you a run for your money. When i was in high school. Im tom keene. With me, adam johnson, and scarlet fu with us as well. Heres adam johnson with the top headlines. We are going to start in china where orders to halt mobile phone Payment Systems and Virtual Credit cards seem to be part of the picture. The Central Banks of Virtual Credit cards are too risky. The ruling comes one day after alabama and . 10 launched virtual critter court. Bank of china bank of china has called for stricter rules. Bitcoin was disallowed by the country about a month and a half ago. A flat tire is blamed for an aborted takeoff of a u. S. Airways jet in philadelphia. The tire blew out just as the jet was taking off. It called the landing gear to collapse. The airplane was airborne briefly before the pilot could land. It came to a skidding halt and emergency chutes were used to get the passengers off the plane. A sad moment. His youngest son found dead in mexico. A spokesman said Jeffrey Corzine was recently receiving treatment for depression. Particularly poignant was the neotograph of the young corzi helping his father out of the hospital after the horrific car accident. He started as a traitor, ran goldman sachs, senator from new jersey and governor of new jersey. Jon corzine, very tough news for anybody with kids. Lets get to the morning mustread right now. Futures are flat, flat, flat. Heres adam johnson. I should say similar to wages, which are not exactly flat but not going up a lot. My morning mustread is from dr. Aul krugman, Nobel Laureate he says in the past, wage increases of four percent a year, more than twice the current rate, has been consistent with a low inflation. We should see rise in wages as a development to cheer and promote,. Not a threat to be squashed. Cheer and promote, not a threat to be squashed. There is no reason for the government or fed to be targeting or worried about high wage growth. I do not think that is the real issue of inflation risk. The issue of inflation risk is that angst are going to start lending. They already have begun. When lending growth and money growth happens, it will catch the fed on its back foot. The fed is going to be too slow to react to that. I dont think it is a wagePrice Inflation spiral story but it is a money and liquidity growth story. It has been a theme in the u. S. For a couple of years. We will continue with Charles Calomiris on his latest book. Good morning, everyone. Bloomberg surveillance. Im tom keene. With me, scarlet fu and adam johnson. We look at stocks, bonds, currencies, and commodities. I want to get through this quickly because what we are really looking at is russia. Futures up three, the 10year yield comes in risk off this friday. 2. 72. 2. 66 . Come down to the russian 10year explodes from 9. 4 up to 9. 64 , showing the tension in ukraine and crimea. Gainers take you to the and losers. One of the big losers yesterday in, another direct cell multilevel marketing company. Herbalife is being investigated by the federal trade commission so there is concerned that nu skin may be under some pressure as well. Six percent billion williamssonoma gaining on some samestore sales number. Do you shop williamssonoma . Go tosed to, but you can estate sales. I bought a pan their last week. How much did it cost you . Whats too much money. But i will have it the rest of my life. I will give it to my kids. And heirloom pan. Never give your girlfriend in heirloom pan or cuisinart. Middled to finance the child to afford the pan. We want to talk about one of the big stories of the of the day and certainly head of the week and. Secretary of state john kerry will meet his russian counterpart Sergei Lavrov in russia today ahead of the crimean referendum sunday. It will decide whether crimea will break away from ukraine to become part of russia. It can get ugly fast the wrong choices are made. Hans nichols, bloombergs international correspondent, joins us from berlin. This is a vote that germany and the rest of the western world make clear will not be honored by international law. The russian response was that kosovo was on it by international law. The referendum will pass and crimea will no longer for all purposes be part of ukraine. It is very clear, regardless of what john kerry tells us counterpart in london. I am absolutely fascinated by next move. I am thunderstruck by the lack of immediacy in the press. Granted, we are all distracted by the horrific Malaysian Air crash. But over the weekend, what would you presume mr. Putin and his soldiers will do . Want to look at soldiers in Eastern Ukraine or still in russia, but you also want to look at civilians and whether or not they are r