He says when the program is up, there is nothing in place and that is the only option. Tom the greek spreads have widened. In the last 20 minutes we got the new idea of greek spreads widening. Olivia i wish you were hear to go through the churn. Two year yield that 23 . German debt, 10 year trading at 0. 09 . That is unbelievably low. The average yield on german debt is negative. Who are you looking forward to speaking with . Tom madame lagarde in our 10 00 hour. Before that ken rogoff of harvard, jacob frenkel, formerly of the bank of israel and now at j. P. Morgan, in moments, a conversation with john lipsky of Johns Hopkins. Olivia speaking of washington, d. C. , yesterday on capitol hill, a surprise raising concerns about the security. A gyrocopter landed, the pilot was arrested. The Tampa Bay Times reports that the pilot was a 61 euro postal worker who wanted to deliver a message. His act of civil disobedience was in protest to Campaign Reform laws. A friend was worried he would get shot down so a friend called the secret service. For the first time in five years, the way president obama is handling the economy is being seen more positively than negatively. 49 surveyed approved of the job the president is doing with the economy. 46 disapproved. A change from december, more than half of those polled disapproved on the economy. The Clinton Foundation will keep accepting money from foreign governments even though Hillary Clinton is running for president. The wall street journal said the board is releasing a policy. The Clinton Foundation would only accept donations from the u. K. , canada, germany, and the netherlands. Other nations would be barred although they could still take part in the initiative. Brendan the german finance minister rolling out more concessions for greece. Wolfgang schaeuble told me it is up to the greek government so it can unlock more a lot money. He reminded greece the deadline is approaching. It now runs through june 30. If greece wants to avail itself, the solution must be found by june 30. Brendan your deadline is the 30th of june . Wolfgang schaeuble that is the deadline of the program. Brendan no end in sight to the standoff with creditors. Viewers around the world cannot get enough netflix. Shows such as house of cards has helped attract 62 million viewers. Subscribers rose more than expected and sales were up 24 . Reed hastings says the company is on a roll. Reed hastings when the internet and television is catching on and we are leading relative to competitors, we have got competitives all around the world in each market. We are feeling very bullish on the longterm brendan in all of these markets. Brendan shares of netflix up 12 in the premarket to an alltime high. Hastings is expected to recommend that the board split netflix stock. The swimmer who has won more olympic gold medals than anyone else is back. Michael phelps will try to qualify for next years olympics in rio de janeiro. He will be 31, relatively old for a worldclass swimmer. Earlier this month he came off a suspension after his second arrest for driving under the influence. It is a or headlines. You have gotten out of your gyro copter and are ready to talk in d. C. At the imf. Tom we have met a lot of people today. There is no more appropriate way to begin the Spring Meetings and with john lipsky. To say he is at Johns Hopkins bailey describes his Public Service to the country and international economics. Thrilled to begin the meetings with you. How important are the meetings to madame lagarde . John this is a challenging moment. Happily, Global Growth seems moderate, as madame lagarde told us a couple days ago. The Downside Risks are very palpable. There is the mystery of the meaning of this super low longterm Interest Rates in the context of unprecedented monetary accommodation that is a puzzle and potentially a challenge. Tom the wednesday meetings are always very important. I have participated in those and there is always tension in the room. What was the tension in the room yesterday . John right now there is no easy solution for a set of problems. Some that really cannot be discussed here in the sense that there is the challenge of ukraine and russia and of course, greece. That does not lend itself to a broad discussion among broad membership but it will hang over everything they are talking about an ad tension. Tom to your work at stanford the theory behind this. This beautiful building, that is great. There has to be a Theoretical Foundation to what we do that makes our lives better. Is our theory worn out . You have been doing this, are we just worn out . John i hope not but certainly the super Interest Rates for sovereign debt in which in some cases, as we were talking earlier, for German Government bonds up to nine years now negative yields which seems unprecedented in the modern era it represents a real challenge to understanding what is going on. Yesterday, the imf sponsored the first day of what they call rethinking macro economics seminar. Tom did you flunk that at stanford . I got a c minus, rethinking macro. John this is challenging, how do we understand what is going on within the context of our existing theory. Tom you talked to phds and i looked at twitter. Criticism of the germans and people are looking for leadership as they confront rate. What is the lipsy prescription lipsky prescription . John no easy answer. The notion that the central bank should be reversing the monetary accommodation does not seem very wise. The notion that germany can just turn on a dime and completely change its fiscal policy and budgetary stance is not very realistic. Tom lets go back to something you said before we came on camera. A great misunderstanding about what madame lagarde and the imf can do to salvage greece. The imf has a very limited legal toolbox. John people say that the imf deal, the debt should be restructured the imf cannot do that for fundamental reasons. The money they have lent to greece belongs to the members. For countries like liberia, to clear those arrears requires other members to donate to pay for those. Tom australia or the u. S. Or canada has to write a check if we restructure greeces obligation. John exactly. The likelihood is not great. The issue of restructuring greek debt hardly seems to be the issue. The interest on their outstanding debt is quite low by international standards. If there were a program that was agreed to there would be ample funds to roll over the existing principal payments. More important is to fix the economy. Tom ken rogoff will be with us later. China and the asia Infrastructure Investment bank. There is the relationship of the u. S. And china and china and the imf. How should the president react to a new assertive china . John at the g 20 summit in november 2010, there was an agreement to reset and reform imf voting patterns that would have increased chinas share of the imf tom that is blocked by congress. John the government has not managed to arrive at an agreement to approve it. As a result, here it sits with only the u. S. Blocking this universally approved reform. That cannot be good. Tha a the aiib, thats an institution that has a clear role. The other is the International Institutions have welcomed it. The u. S. Position might be reflecting the difficulty the administration sees in getting congressional approval in joining but it at a note of difficulty for international governance. Tom you came out of the midwest. Cedar rapids iowa. Good morning. An esteemed career and economics. The money question, how do you respond to americans who say the american taxpayer is funding the playground of the imf . How do you respond to that criticism . John i dont know if that is a criticism or a fact. The u. S. Has approximately 17 of the voting share, about 70 of funds paid to constitute the funds of the imf. These are occasionally lent out. When they do, the u. S. Receives compensation for those funds. More broadly this is an issue of creating a rulebased system that will support International Trade and prosperity. Theres every reason for the u. S. To want to maintain the largest shareholder position in the imf. Tom thank you for getting us started at the Spring Meetings. Much more to talk about. Joining us next, jp morgans jacob frenkel. Talking about the currency, the ever stronger dollar amid the currency wars. We are at the Spring Meeting of the imf 2015. Brendan this is bloomberg surveillance. Lets get some top headlines. Surprise on capitol hill raising concerns about security. A gyrocopter landed on the capital lawn. Police are investigating. The Tampa Bay Times says the pilot wanted to protest money in politics. For the first time in five years president obamas stewardship of the economy is seen more positively than like it of late. 49 approve of the job the president is doing and 46 disapprove. A change from december, where more than half disapproved. A beat for black rock and larry think in the First Quarter. Adjusted earnings per share was just below expectations. Shares are up about tony 5 in the last 12 months. Malaysia could be expanding the search area for flight 370. Officials are saying they plan to explore an additional 23,000 square miles if the jetliner is not found by may. The boeing 737 went missing last year. A judge sheldon General Motors from billions of dollars in death claims. Saying gm cannot be sued for losses before the automaker entered bankruptcy. Lawyers said they did not get a chance to sue because gm covered up defects. Could amazons next target be supermarkets . Amazon fresh is the Cheapest Grocery delivery in new york city. Amazon beat its closest competitor by 20. Olivia still to come how robust is a Global Growth. We are going to ask jp morgan National Chairman jacob frenkel. Tom speaking to him in washington, d. C. Is googled a monopoly, do not miss our single buster. Best chart. Will greece exited the eurozone . 62 million 62 million harmony subscribers netflix had at the end of the First Quarter. Up from the end of last year. He was dialed in to the Conference Call last night. The forecast was growth of . 63 per share. Netflix put up . 38. The stock is still up. The mainmast was due to Foreign Exchange headwinds. You can get a sense that the company outperforms. It was no surprise foreignexchange was a factor because they are accelerating expansion. The real story is subscriber growth. They beat by a large margin. There seems to be at inflection in the Business Model and there seems to be no sign of slowing down. Olivia total outside u. S. Subscriber stands at 21 million. Ubs thinks it could hit 87 million. Tuna if you think about the addressable broadband households , potentially reaching 60 million to 90 million subscribers we are beginning to believe it could get there. The real upside is internationally. There are going to be 200 countries of the next few years. Olivia International Expansion is costing them. What makes you confident they can stop the bleeding . Tuna as long as they keep delivering subscribers and leveraging the content spend kind of a fixed cost spreading across a broader base, while they are making losses internationally they have guided to significant material profits to 2017 and beyond. Brendan when we looked at data about streaming internationally and netflix is the biggest service in the u. S. , internationally there is a huge presence of piracy, particularly in asia and latin america. As they expand were not just talking about different households, we are talking about a different culture. How do we defeat piracy . Tuna there are mitigating that by actually doing a number of things. Content in getting Global Licensing countries where there is more control over piracy. Piracy is still an issue. It is not an overwhelming concern. Brendan after the decision on net neutrality, did the street say now we have certainty are now a lot of lawsuits . Tuna four netflix that was a positive development. The idea of paid prioritization is something the company has near india to their heart. Overall, the reason to be concerned is for an isp. For a content creator like netflix is it positive. Olivia brendan and i are fans of the unbreakable kimmy schmidt. You can do anything for 10 seconds. My producer would like me to go to break. What do you want to hear tom keene ask Christine Lagarde at the imf . Brendan this is bloomberg surveillance. One of the beautiful things about running your own country is you get your on television show. Hugo chavez had one. Of coarse you have Vladimir Putins yearly call in. It lasts up to four hours and he takes calls from anyone in russia. It looks a lot like a pbs pledge show. What they are doing is asking him for various favors. There was a promotion to this year it was almost like a trailer for hollywood. You had him staring down barack obama. Olivia it looks like an Arnold Schwarzenegger film. Ryan brendan he will do various dictatorial benevolence. He will give a child a puppy or fixed pipes. How can we carry on living without a suburban Train Service . Because our youngsters cannot attend schools, etc. What can i say . Yes, of course, i agree with you. I cannot go into details on the problems brendan Vladimir Putin agrees with a color. A caller. We are considering changing our format. Olivia good morning. I am Olivia Sterns. Lets get to our top headlines. In russia. Putin is saying he expects International Sanctions to remain in place for some time. An economy heading into its first recession in six years. Hes answering questions live on a Television Call in show. The Financial Sector is thriving. Putin despite the volatility of financial markets, russias banks have been developing well. Our bank assets have grown to 77 trillion rubles. These assets are larger than the gdp. Olivia the ruble is the worlds bestperforming currency after falling 46 against the dollar. It gained more than 20 in 2015. Oil has rebounded. You can watch putins callin show live on bloomberg. Com. A new poll has good news for president obama. For the first time in five years, the way the president is handling the economy is seen more positively. 49 approve of the job the president is doing right now with the economy. 46 still disapprove. That is a change from the summer. More than half disapproved of the president S Performance then. It turns out the Law Enforcement knew in advance man was going to fly the gyrocopter into the capital. The aircraft landed on the lawn leading to a complete lockdown. The pilot was arrested. The Tampa Bay Times reports that it was 61 year old doug h ughes. A friend was worried that hughes would get shot down so he called the secret service before the flight. Brendan jack lew is saying it is not good for the u. S. To be the only Global Engine of growth. He told peter cook the u. S. Strength could be a doubleedged sword. Peter cook it is a great thing the u. S. Economy is doing better. I do not think it is sufficient to drive the entire Global Economy. Now, obviously, there is a pick up in Economic Activity in a bunch of places. How durable it is is something it has to be a focus. On brendan . Lew says it is no surprise the dollar is so strong given the strength of the u. S. Economy. Shares of three copies begin trading tonight. Virtu financial raised 314 million wit. The firm to latest original plan for an ipo last year. Other Companies Price their ipo. Party city and craft marketplace etsy. In sports one of the Great International rivalries. The u. S. Versus mexico. Last night the u. S. Beat mexico 20 in san antonio. That was considered a frine endly, an exhibition game. Tom was not watching the game last night. Hes preparing to talk to people in washington, d. C. His annual big game is tehe imf. Who have you got lined up . Tom it is a wonderful morning from us. Madama lagarde would be with us. The german 10 year yield approaches a negative yield. One distortion within our global great distortion. We know, we just know, even if we do not know, it is not right. Jacob frankel joins us. He is a former governor of the bank of israel and as with jpmorgan international. A lot of our audience does not know, professor, that you had an entire academic career. We went mondofrankelrogoff in currency research. Should we freear a strong dollar or fear the obviously current scores currency wars we are in . Jacob if we think about it as currency adjustment, we should not fear about it but rather try to understand. We have a situation where the u. S. Has started its quantitative easing long ago in a dramatic way. Today, the size of the Balance Sheet of the fed is 500 above what it was in 2007. And obviously, since europe started later, we have a situation where initially the u. S. Currency weakened. Now we have a situation where the u. S. Is talking about tapering. So the markets expect a slwoing slowing down of monetary expansion and u. S. At the same time, a market expects a quicker expansion of money in europe. When you have these kinds of things, obv