Transcripts For BLOOMBERG Bloomberg Surveillance 20150223 :

BLOOMBERG Bloomberg Surveillance February 23, 2015

If so, bailout funding will keep flowing to greece. If not, there will be another round of emergency talks late this week. On friday, the eurozone agreed to extend the bailout funds for another four months. We want we won the battle but not the war. The real difficulties including those related to the negotiations in our relationships with our partners are still ahead. Alexis tsipras says the new agreement wipes out previous pledges to cut wages, pension, government jobs. Security has been tight at the largest mall in the u. S. After a terrorist threat. The terror Group Alshabaab called for an attack on u. S. Canada and u. K. Specifically mentioning the mall of america new minneapolis. Jeh johnson says these are threats people must take seriously. If anyone is planning to go to the mall of America Today that to be particularly careful. As the statement you read indicates, the will be enhanced security that will be apparent federal security as well . There will be enhanced security. Johnsons agency runs out of money on friday. Homes security funding has been tied up and comers because republicans are angry over president obamas lanes to protect undocumented immigrants from deportation. Apple is making its biggest ever investment in europe. The iphone maker will spend almost 2 billion Building Data centers in ireland and denmark. They will run services such as itunes and maps. They are set to open in 2017. A big deal in pharma, 10. 1 but in dollars in cash 10 point one but in dollars in cash. Lester, valiant was thwarted in a long time attempted by allergan. The maker of botox. Valeant is known as a serial acquirer. It buys companies and then cut r d cost to boost profits. Botox. Tom has no gross feet crows feet. Birdman was the big winner. It is about a washed up actor it won 4 oscars including best picture of mr. Rector. Another winner, Julianna Moore one for best actress in her role in the movie still alice. Which i did not see, but i heard was wrenching. Thank you so much. I read an article that said winning an oscar could lead to living five years longer. If that is true, i would really like to thank the academy because my husband is younger than me. Julianna moore and the celebration last night. The best actor award went to 80 Redmayne Eddie redmayne. He pretrade Stephen Hawking in the theory of everything. The euro plunges as we speak, down to 112. 97. That is without question the number one thing to watch with what is going on in ukraine, particularly, greece. Oil dropping like a rock as well. 50 all of the sudden, 49. 83. Lets move on, if we can. A good tone in the equity markets. The wrubel finally goes with the news ruble finally goes with the news. Or dan greeley, help me out. This is the u. S. 10 year yield. This is the portuguese yield. Jonathan pharrell highlighting this. John farrow highlighting this. Portugal, tenure is the same as the u. S. 10year. Known as more annoyed than the Prime Minister a portugal. They have been doing everything right. Everything that were supposed to do. They dont have that problem right now. I would agree this is more u. S. Growth, little higher yield. This is much more of that deflation move as well, the gaming of deflation. That is unbelievable portugal with the same yield as the united states. Lets begin our coverage in berlin. It is been a year since the ouster of ukraines viktor yanukovych. Thousands marched in kiev yesterday. Rebels reportedly attacked a small coastal village. Hans nichols is in berlin. All are focused on the rebels. I want you to frame for our u. S. Listeners how crucial this new front could be to the south of kiev. Is support for several reasons, not the least of which it marks an escalation in what had been the previous ceasefire. Yet a ceasefire that hasnt been observed very well. Theres conflicting reports on whether or not they will be drawing back from the front lines. This is something entirely new. Yet when Angela Merkel last weighed in on this over the weekend in paris, she still wants to give the ceasefire hope. Doesnt seem to be a whole lot of tangible reasons to have hope. We are Foreign Ministers meeting tomorrow in paris. All on hopes of the ceasefire. I am not certain where this optimism is coming from. On friday, kiev was asking briefly for you and keys papers peacekeepers. The latest whiff heard the latest we have heard, talking more about the importance of the Foreign Ministers meeting and sticking to the ceasefire agreement. I havent heard specifically for foreign troops them a peacekeepers but that said peacekeeping request wasnt really taken all that seriously in european capitals. It seems like were a long way from finding some sort of peacekeeping force equity eventually be in this zone. You are in berlin. What is missed merkel focused on this morning, greece or ukraine . Like all things with chancellor merkel, both. And other things were not even digging about. The greece situation significant. We have no specifics. Germany needs specifics if theyre going to approve this package. The greek trauma continues in athens. Drama continues in athens. The government is grappling to appease. What is the greek Leadership School this monday . The greek leaderships goal is pretty much the impossible. On the one hand, it has to submit a list of proposals to the eurogroup that satisfies people like chancellor merkel in the finance minister, while at the same time mutating solidarity within the syriza government that was swift into power on the back of preelection promises that it was going to and austerity. What is obvious is that austerity is here to stay. The question is, how austerity is defined. Greece won some measure of the definition on friday, but it remains to be seen how the finance minister Yanis Varoufakis plans to put it into practice. All that we of heard from the government thus far this morning were promises to the greek people. Weve not seeing anything of substance as to how greece is going to meet the target set forth by the eurogroup. After two or three weeks since the new greek government has come in office, what do you think mr. Alexis tsipras and Yanis Varoufakis have learned about dealing with europe besides perhaps wearing a tie . A lesson that Brendan Greeley has also picked up on. What have they learned about dealing with europe . They have almost no leverage. Lets put it that way. Greece is bound to the terms of the bailout. What Yanis Varoufakis and Alexis Tsipras wonder was some control over their own destiny and they won some of that. As i put it to our colleagues this morning, they still have to hack off one of their limbs. The situation before was the ecb, the imf, and European Commission were telling greece which of their limbs had to be hacked off, and other greek government gets to decide is it going to be my left arm, my right leg . At the end of the day, it amounts pretty much to the same thing. Erik schatzker, continuing coverage in athens. We have breaking news. This is out the door with the ceo and the force takes over taking over at dish network, mr. Clayton is out this morning. He has been there for about four years. That shows the turmoil in the industry. Dish used to be its own separate operation. Look at the different cell phone providers but into the same services that dish is, that business is changing. A perfect way to set us up for a conversation. Lisa brimelow with is with us this morning. And Brett Wallace joins us as we look at initial Public Offerings in the market. So much of this has created destruction. Dish or comcast or bloomberg or anybody has to face the constant changing technology. What do you see now as the force of Creative Destruction for this year . The signs of his are all over the place. What is interesting, if you are a snap chat or Whatsapp User first would you pay nothing, that ensures revenue for those who used to charge you for text messages. As an example, when i look at the extrapolation of the values in your area, you look at the actual documents, you read the documents. How do you extrapolate out, 19 million . By the way, tom is a snap chat user. When we start what is interesting, you did not get 19 billion ford, you got 2 of facebook for the whatsapp. And extrapolation on the extrapolation. No one knows what tomorrow looks like. Everybody is playing for the over the verizon horizon future. We know the disruption is happening. What it is i doubt later, we shall see. This is a place your thing deflation in the economy. I saw an article this morning how the sharing economy is bringing down everything from taxis so tells. And what rett was talking, whatsapp taking over for texting. It is all just bits. You cant distinguish between tv and texting, it is all just bits. Coming up, the Obama Administration wants to change the way Financial Advisors offer retirement advice. Wall street not happy about it. We will tell you why coming after the break. This is bloomberg surveillance. Good morning, bloomberg surveillance. In ukraine, the headline still come out, some key of forces and government officials talking about some form of import and capital controls currency moves on the bloomberg monitor. You can see this spike. That is all within the last 30 seconds, maybe 45 seconds. Currency crisis in ukraine, to say the least. Lets get to our top headlines. We begin in nigeria or female suicide bomber killed at least seven in the town. Witnesses said the young looking girl jumped a rope barricade at a mobile phone market before detonating explosives. At least 30 were injured. No immediate claims of responsibility. Ogre from has waged a violent boko haram has waged a violent measure. Prime minister tony abbott today announced plans to strengthen immigration laws and crackdown on groups that incite hatred. The measure is aimed to stop homegrown terrorists. The country will point point of counterterrorism chief. North korea, barring foreigners from aprils don young caps on. The reason . Ebola fears. The country still closed his doors to foreigners. Those are some of your top headlines. You start a new job look for options for your 401 k , make a choice and move on. New rules published this morning, the white house is arguing you might have been steered into a high fee plan. That essentially, the big layers and personal finance do not have your best interest at heart. Heres what a lobby group said. It is stunning this is the view the administration at the highest levels has of an entire industry. This from Francis Creighton peter cook, Financial Services roundtable sounds really, really hurt. What does the white house say it is fixing . The white house says what it is fixing, basically, conflicted advice that right now, if you have a 401 k or retirement account, an ira, that right now the broker who is serving you potentially could be giving you advice that is not perhaps in your very best interest. They want to change the Legal Standard by which those brokers do have to offer advice from simply Investment Decisions that are suitable for you, because of your age, income, that sort of thing, to a fiduciary standard. They must put the clients interest first. They say what theyre getting at theyre getting away from the situation where a broker might offer you advice because it steers them to the has amount of compensation first, the highest commissions, the highest fees as opposed to the best advice they could be offering you as a retiree worried about your future. What will this mean . Your choices will be different how . Your choices will be different in terms of the person youre talking to. The choices for them will be different. They will have the face of higher Legal Standard going forward. What is happening today, the white house is basically encouraging the department of labor to move forward with these new rules to send them over to the office of management and budget for review over the next couple of months. The industry have a chance to weigh in and explain why these are bad ideas. This kicks off what is going to be a really toted toe fight with wall street over this change in Legal Standard. It is a big deal. Were talking about 11 trillion. You make this change right now, a lot of folks on wall street will say, youre going to reduce the choices available to retirees and limits their options, limit the amount of advice they can get. But the spirit of the law does seem pretty simple. Requiring brokers to act in the interest of their clients. In young wall street are opposing this. Theres a huge financial lobby. Walk us through the argument against it. The argument against it is a couple of things. First of all simply, the sheer number of products that might be available to retirees, the options will be limited because they wont have as many choices. People with smaller accounts right now, those people with lower amines, they simply wont be able wall street wont be able to offer advice to those particular people because it is not going to be costeffective. They wont be able to offer them the same kind of options. They wont get the advice they might otherwise get. Obtusely, it is a bad thing for the Financial Firms because they wont make as much money obviously, it is a bad thing for the Financial Firms because they wont make as much money. In the next hour, Scott Galloway will join us from New York University. We will talk a little bit about the oscars, but much more with Scott Galloway on retelling america and branding. Stay with us. This is bloomberg surveillance. Todays mustread from the wall street journal the numbers look similar in the u. S. As they do in europe. More and more adults are choosing not to have children. Theyre living longer, living alone, and are huge unintended social consequences for this. One problem, you are not having enough children to take care of all of the retirement needs in old age. You need lots and lots of kids paying into that. Another thing you see in the developing world as well, one thing that is naturally happening as gdp per capita increases in developing country, people have less children. It is a natural consequence of having more money. They like to have a life. As a mother of Young Children it is a pretty large burden have two children but it does teach you how to think about people other than yourself. Really . Long some marriages are out and that has profound social consequences not just the fact that reproduction rates are going down to the extent we can no longer afford social security. Yet to be a millennial to call them reproduction rates. Im sorry, what do you call them when you are not a millennial . Can we talk about the new york state math curriculum . What did you do this weekend . I try tos the i try to sleep as much as possible. 27 of children in the u. S. Are born into fatherless homes. 40 of children are born out of wedlock. This is an enormous trend, similar in europe. A woman in belgium every productive age has a 4 likelihood of getting married and having a baby. I think are our traditional social ways of taking care of kids and your parents. As those things evaporate, were not yet officially replacing them with statebased solutions. For women, working women, if you dont have child care it is convenient and not too expensive, it becomes cost prohibitive for you to work. Certainly true. Do you believe the debate is mostly a debate of people making 400 million 400,000, one lane dollars a year. I think this is a debate about people who cant, who are working for less money than they have to pay out for childcare. We got lisa fired up. This is a very important topic for me. This brings us up to our twitter question of the day hes out there. Theres a guy out there whose making a name for himself in a sport where your name and maybe a number are what define you. Somewhere in that pack is a driver that can intimidate the intimidator. A guy that can take the king 7 and make it 8. Heck. Maybe even 9. Make no mistake about it. Theyre out there. I guarantee it. Welcome to the Nascar Xfinity series. Good morning, bloomberg surveillance. Im still getting over dakotas dress. Here is Olivia Sterns. Russia wilson another socalled humanitarian aid convoy to eastern ukraine. In the past ukraine has accused these convoys of being used to deliver weapons to prorussian rebels instead of eight. Ukraine says those rebels have resumed their attacks on government troops. Both sides have agreed to start withdrawing heavy weapons from the battles owns. The government increase is trying to satisfy voters and european area finance ministers. Greece has until the end of the day today to come up with a new list of financial policies in exchange for funding. That is part of the agreement to extend bailout funds for greece for four months. The greek finance minister spoke in athens. Were in the process of compiling the list. It will be submitted in good time for them to have as much time as possible to assess it. Were pretty confident were very confident that the list is going to be approved by the institutions and therefore, we are embarking on a new face of stabilization and growth. The greek government wants to make good on election promises and show voters it will be able to raise wages and pensions. Those are barred under the current bailout agreement. Two big problems that hsbc falling profits and a tax evasion scandal. The fullyear earnings fell 17 . Meanwhile, the bank is still dealing with fallout from a report on how it handled swiss accounts for tax evaders and criminals. Ports along the west coast are coming back to life today after a labor dispute. Dockworkers resolved the ninemonth contract standoff late friday. Cargo backlog from ships waiting offshore may take eight weeks to clear. Since november, they had reduced productivity at the ports by as

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