Well and it is the Bloomberg Consumer comfort index at 10 00. Fed had had, so apple of days ago. We also had the Kansas City Manufacturing number. Why do they do regional numbers . If you add them up, you get it picture of the country as a whole. We are federalists. Before the bell, best buy, scarlet fu will break that. Hewlette bell, the gap, and packard and obama is speaking in cooperstown today. Thats because the orioles are in first place. Lets do a data check. Equities, bonds, currencies, and commodities. The equity markets have a surge. Weaker and nymex crude is elevated bigtime. Vxx shows under 12. The euro dollar is so important. There is iron ore. In shanghai. I have no idea what the number means but iron ore is cheap. This is the volatility in the market. It is gone. This is the 25 year average. Over the lastgst five years and down we go bearing down to a new complacency. This is the conundrum. Thank you Central Banks and janet yellen yesterday saying considerable . We are moving to our focus on the front page. The news broke yesterday that we got more color on the natural gas deal between russia and china. Its all over the cover of the washington journal. Gazprom sold a deal to china to supply natural gas. I was tweeting about this last night. President obama to japan without a trade deal but Vladimir Putin goes to china and comes home with a deal. I was being a little snarky. This has been in the works for a while. Just across the terminal, you see it is now formal thailand has another military coup. Adamant thatas this is business as usual. They have had a lot of political trauma in thailand. Spreadse is whether it beyond their borders and whether uc unrest through the rest of asia. They had imposed martial law and now the coup has happened. This is 24 hours after the army said it was not a coup. Stephen roach will be coming up in the next hour. We need to talk about one specific company, a Chinese Ecommerce Company begins trading on the nasdaq today. D. Com posted an ipo and raised 1. 8 ilium dollars and their Business Model is similar to amazon. Sales versus amazon which is a higher value than amazon. Carefully to Bloomberg Television. All my radar is up. I just dont get it. It is valued more than amazon . I dont know, i just dont know. Its the promise and the potential. We are in frothy times. Lets get to where third front page. Banks are backing away from marketmaking activities. Goldman sachs is selling his rights to operate as a market maker in more than 600 New York Stock Exchange listed stocks. Bank of america is dismantling an electronic market that was only set up last year. Increased scrutiny from regulators and scaling back on list like Morgan Stanley said. One by one, they are following suit. It is a new era. Dont you feel we go into summer with the banks trying to figure out . The banks are utilities. We are at a critical juncture. Those are the front page stories. It is an International Day today. Lets be a little bit of mastech. Begin with Michael Spence as one of our guests. You live in italy and you are focused on china. You are the authority on risk. How distorted is our Central Bank System at this time . Its quite distorted. Europe willk recover unless there is a significant weakening of the euro. Very reluctantly, the ecb is about to move into that territory. Japan is a question mark. Growth in europe is low and the fragile five are recovering as i expected. They were put off balance by the spill over from abnormal Monetary Policy. Its a very unbalanced world. We think about foreignexchange can a central bank push the currency weaker or stronger . Yes, it can, absolutely. Draghi intendst to do that. He will probably buy assets like sovereign debt. He signaled clearly the ecb would be ready to movein jim. Given that he has signaled that, will have much effect . Its hard to know how fast it gets priced in. There is still uncertainty because there is a couplet in the relationship between the ecb and the germans. There is not a certainty about what he will do and how aggressive it will be. I think youll see a movement once he actually does something. Professor, we have john taylor on the show from time to time. He makes the point that when you dont have inflation, its pretty hard to push the currency down. With no inflation in europe, you cannot push it down, so how do you do it . Thats a good point. I think we are in uncharted territory. The problem for europe is that notwithstanding the previous bout of systemic risk, this is a place where money is going. People look at the United States and say that does not look good and the emerging markets are not understood. Where does it go . It piles into europe. Its a little ironic that the money is flowing into the economic basket case of the Global Economy but thats what it is. I dont have a job. I get to talk to steve roach in the next hour and yesterday scarlet spoke to mark mobius. On a structural and permanent optimism on emerging market shares . Should our viewers in america be investing in those countries . Yes butasic answer is needing to invest with a knowledgeable advisor. You need someone like mark who knows what he is doing who has experience and can assess the environment. That is the particular companies or securities. The growth story is right and i think it is, the longterm growth story with the downward reset of the asset prices, i think there is a real opportunity here. Michael spence is with us for the hour. Me, 30 mobius floored is the emerging markets. We have reports of a deal that could shake up the tobacco industry. Reynolds american is in talks to buy lorillard. Combined company would be number two in the industry that is led by altria. Largestne group is the landlord of singlefamily homes and now a starting a company to buy apartment buildings. The properties were valued at 2 billion in the head of the units as blackstone is constituting an urban areas where there is not much new construction. Carnival cruise ships are going greener. They will spend up to 400 million on new exhaust Heating Systems that will allow carnival to meet air pollution standards for u. S. Coastal waters. This is thailand and the military coup that we are following now. You see some of the emotion. Its frightening. Coming up, mcdonalds is planning to hold a Shareholder Meeting today. Protesters are causing some trouble outside Company Headquarters and we will talk about the fight for higher wages in the fast food industry. That brings us to our twitter question of the day this is bloomberg surveillance, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. Good morning, everyone bloomberg surveillance. Coming up, the former America Online ceo stephen case. He had that big transaction a decade ago and he is live in the loop. We have an incredibly busy morning. I am with scarlet fu and adam johnson. This is a fascinating domestic story. Thets a busy morning for executives at mcdonalds because they are holding their annual Shareholders Meeting in illinois this morning. They have been dealing with protests from fast food workers rid their own workers as well as others, about 2000 protesters demanded wages of 15 per hour and the right to form a union. It is very specific. These guys want 15 per hour and the right to form a union and were joined by the president of the Service EmployeesInternational Union and an official from the naacp which is the countrys oldest civil rights organization. Coming your spence did you were awarded the nobel prize in 2001 the link between Higher Education not because it makes you smarter but what it says about your worth to employee or an employer help us understand how fast food workers presumably dont have as much education try to justify their worth. We haveeneral situation is becoming increasingly well understood. We have a combination of technology and globalization stripping out routine jobs, low value added jobs. The nonroutine jobs in Nursing Homes and fast food restaurants and so on is a buyers market. There is lots of people who cannot get jobs elsewhere. Isis a world in which there a huge premium to Higher Education because it moves you up into a different segments of the labor market. Forces have put workers in a situation where the Median Income has not gone up for two decades and there is a kind of stagnation. The minimum wage is not gone up for almost two decades now. I think you will see more of this. This is grassroots objection to the distribution characteristics of this economy. The composition of the fast food workers is different and now its older adults as opposed to teenagers. The numbers are staggering 1619yearold made up 16 of the workforce versus 1 4 back in 2000. People are trying to make a living off these chosen they cannot do this. Thats absolutely right. Its a combination of a longterm trend and the hit we took in 2008. The combination of the two has put lots of people in trouble and thats where they get work and they dont like it but it is a buyers market. Going back to your work at stanford years ago as a means to capital and labor, i would suggest if you look at the share price of mcdonalds, the capitalists have been winning. Within the broader american, i the american economy, what is labor get their fair share . Thats a good question. Let me modify what you said. Can the Nobel Laureate modify what i just said . I think so. You have the floor. The return to capital however you measure it profits people who own stocks and the return to Human Capital is where the shift in income is flowing. If you throw in Human Capital its dramatic. Its flowing away from lower skilled and lower education parts of the labor force. Where in that spectrum do you strike the balance between Market Forces and Public Policy . That is the single hardest problem we are wrestling with. This is not going to stop. First we had globalization and then we have automation of things and now we have robots. Becausey is celebrating robots will bring manufacturing back. They will go back to the market and china but at the expense of jobs. To the profound simple question, doesnt it stop at the voting booth . Of americae a lot that is not enjoying these games will go in and they will vote and turn out the capitalists at some point. Yes, thats a good observation. A legitimate concern is that you what europeans call social cohesion, the thing we think we share, in terms of values. If you go on this path too long, you dont know where it will break up. It will break down. Can the plutocrats get 20142016 before the greater tensions take over . Yes, probably. I agree. The tensions will remain. Weve got more coming up on surveillance. Stephen roach will be with us in the next hour. Asia we will talk about the chinarussia gas deal. This is bloomberg surveillance, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. Good morning, everyone. Scarlet fu and adam johnson have joined me this morning and futures are up2. Adam johnson has top headlines. In western china, a series of explosions in a market killed 31 people and wounded 90 more. China blamed wieger separatists. There was some horrific violence about two months ago. The ukraine prorussian militants attacked a checkpoint. At least 11 people were killed in fighting and witnesses say about the ukrainian troops were you wounded. In the nhl playoffs, the Los Angeles Clippers scored the los angeles kings, forgive me, beat the chicago back the chicago blackhawks. Row at a at the front kings game has btotox. The series night and is tied. How many goals . Five goals in the third. Period. We go to the rangers expert scarlet fu. They are at the garden tonight at 8 00 for it lets let the series go to seven games because the rangers will clean it up. I might be getting ahead of myself. Isthe New York Post pushing spirit and wear blue. It has been 20 years since we won the stanley cup so the timing is perfect. Lets get to the morning must read. Littleose one thats a touchyfeely but it jumped out at me. Its from Thomas Friedman in the New York Times what are we left with . The nails it sometimes. I think he does. Everything is focused on bigger urban areas. Think of the conversation this morning like deals with china and russia were violence in china and the coup in thailand. Michael spence is with those who went from the urban landscape of palo alto to new york city. What was it like moving from stamford to nyu . Youve got a very different feel about what life is like in a city like new york. It is alive and has life on the street. In palo alto, you have to get in a car to get a loaf of bread. Its an exciting place but if you drive through it, you cannot see it. Probably moving in the direction of more urban and america. From one big city to another, we are going live to st. Petersburg next. Good morning, everyone. Let me do a data check. Two, the yield moves higher and europe is a headline number. A backstory into a threeday weekend in the United States, oil is moving higher. That is american oil. He has been busy with two outstanding interviews recently in russia. Saint it is bird. The biggest meeting of russian leaders is happening and Ryan Chilcote is with us. The story is who was not there which are American Financial leaders. How much have they messed . Missed . Missed moremore than they have missed. Among the noshows youve got everybody from the ceos from Goldman Sachs to visa and mastercard and everybody that was supposed to come from the u. S. The white house told caterpillar to stay away and they have. A lot of the european ceos have stayed away as well and some of the International Organizations like the ifc. A clear message being sent to president Vladimir Putin that if he goes further in ukraine there will be isolation and this is what it looks like. What is the goal of the meeting . I think president Vladimir Putin wants to come here tomorrow to say that the ceos that have not come to this meeting, we are not going to penalize you are punish you. We dont think what your governments have done by rightting you not come is but we would like you to do business in russia. He will try to reassure them there will not be any retaliation. Some people who are familiar with American Business interests here and they say they are concerned that they will lose market share. He will probably make a reference to china and that just deal, 400 billion come a that russia has options. Its kind of a limited option, really. Between russia and china and Vladimir Putin is probably taking a victory lap of what kind of conversation are you picking up on this deal . Today isg thing everyone is asking what price russia will sell the gas for. That was identified as a commercial secret yesterday. Its not that common that information is kept secret. Everyone is talking about maybe the prices lower then they are selling to the europeans. The only thing they have kept it secret, this is speculation, is because the russians are embarrassed about the price. They needed the deal because they have been pursuing it so long and they wanted to send a message to western europe but if you want to diversify away from russian supplies, we can diversify as well. Do you sense a pivot from the russian ceos given the fact that so Many American and european ceos are not present . Thats a good question. Yes, when president outin went to china, he brought a big delegation with them. When it comes to the far east of the country, china is their neighbor so there has been a little active visitation or a little bit more initiative on Russian Companies to engage with the chinese. As we talked about yesterday, the russians are still anxious about letting the chinese too far into the economy. They dont really trust china and the not that Many Russians and the parties and their concerned about the far east of their country being overwhelmed by china which has hundreds of millions of people right across the border. Chilcote joining us from st. Petersburg this morning and he will interview the ceo ofseversol, the biggest russian steelmaker. From st. Petersburg, lets move south to kiev. Ukraine will hold an election in four days and confusion and violence reign with no apparent leadership. Marks as the latest on the ground but he has recent travels to Eastern Ukraine. Its a pretty chaotic part of the country. There is this new peoples republic that is being formed a few weeks ago. The guys running that arent interesting bunch of people and one of them is a moscow resident. He has been announced as the new Prime Minister there. There is a lot of military activity outside the main city. We heard this morning there are 11 Ukrainian Army soldiers found dead. Quite a few of the checkpoints around the city and it was not there a