Kathmandu, the capital. First report said there were no damages to kathmandu, but it may take some time to determine impact. John kerry is in russia meeting with Vladimir Putin. He arrived this morning in sochi, the black sea resort for last years winter olympics. Relations with the u. S. And russia had been strained over a variety of conflicts. Kerry wants prorussian rebels in the ukraine to honor a ceasefire. The National Football league is coming down on the new England Patriots for the fleet gate for deflategate. The patriots have been fined 1 million the most in sports history for the nfl. They also lose a couple of valuable draft picks. Brady was aware that the football that was used in the afc championship game was partially deflated. He plans to appeal. There is no breakout republican candidate in New Hampshire yet. The poll shows rand paul, marco rubio, and jeff push all have failed and jeb bush all have between 59 and 62 . But scott walker and ted cruz are right behind at 54 . Voters are waiting for jeb bush to take charge. They are discontent with the field their discontent with the field has nothing to do with their position on anything. They have not seen anyone willing to say i can crush a democrat in a general election. That is what they are waiting to see. I think the opportunity is to see how aggressive he can be in taking on a democrat. Vonnie no one has ever paid this much for an artwork at auction. A painting by Pablo Picasso went for a world record 179 million last night at christies in new york. The painting called women in algiers, was bought by an anonymous collector. Christies took in more than 700 million last night and expects as much as 1. 3 billion worth of art this week. The christies, about 20 million, 12 . Tom you wonder about the commission, and you also wonder we do not know who bought it do we echo brendan i bought it. Very likely, like other great works of art, an unidentified asian buyer. We are going to take a look at Small Business optimism in the u. S. At 9 00 a. M. At 2 00 p. M. , americas Monthly Budget statement. Tom a busy day all in all. Retail sales tomorrow across america. Lets do a data check. Futures, 15, dow futures, 127. The euro puts on to the next screen. If you would. The big showing some of the angst we saw yesterday, the vix out at 13. 85. This is a really cool chart. Sometimes folks, i do not know what i am doing when i make charts. You just do them for the doing of them read this is the doing of them. This is m2 in china. I did not notice this is massive m2 shrinkage in china. Four standard deviations down. This is desperation. Brendan but coming off yesterdays rate cut, i took a look at our own predictions. Our economist in beijing said expect quasistimulus. More money being spent on projects in china. Tom thank you. We thank Ruchir Sharma for his appearance yesterday. Russia 13, the u. S. Nine. That is the number of gold medals earned at the olympics today. We will find out the tone right now. Peter, why does he have to go to sochi to meet with Vladimir Putin . Was that expected or dictated . Peter the reality of this meeting is that it was a surprise in the first place. John kerry the highestranking u. S. Official to meet with Vladimir Putin in russia in more than two years. He was the last to do it in 2013 just before the Edward Snowden situation blew up and snowden landed in russia. This is a test, if you will, to see if the lines of the medication between the u. S. And russia can be improved amid continuing tensions particularly over ukraine. Whether or not there can be some way to foster a more sustainable peace in ukraine, and maybe the sleeper issue is syria, to see if there is the possibility of greater cooperation between the u. S. And russia, trying to end the syrian civil war, and particularly, Russian Support for Bashar Alassad. Brendan so the meeting is happening because it has been a while and it is awkward if we wait longer . Peter that is about right. Russia has said it is to normalize relations. The u. S. Is not going that far. The state Department Says it is a chance to keep open the line of communications so a distinction there. It was not a very conciliatory message in their own statement announcing that the meeting was happening, much of it blaming tensions between the two countries on the united states. They would not confirm the meeting was happening until today. But it is happening. He is also meeting with his counterpart, Sergei Lavrov. He talks to Sergei Lavrov all the time, but it is Vladimir Putin who is going to be at center stage today. Perhaps it can ease the chill in the air. Brendan in the u. S. We have taken a much more aggressive stance in syria. What can be done with russia right now on syria . Peter well, u. S. Officials say this is an opportunity to test how far Vladimir Putin is prepared to go to standby Bashar Alassad. There are concerns raised about the syrians once again using chlorine gas on their own citizens. You realize you recall that the u. S. And russia did agree in syria with regards to serious to syrias chemical weapons. There are questions about whether a side is sustainable about whether Bashar Alassad is sustainable and if the russians could be prepared to talk to the u. S. About ways to move syria forward to at least improve the civil war in that country. Tom peter cook, thank you so much for getting us started on international relations. Rates on the move again. Equity move equity markets, new lows on futures. The theater of cheap money empties with higher rates. What will real estate dealmakers actually do . They have to think long and big. They have to encourage at all moments, and even worse now as rates move. We will speak with william ruden, chief executive officer of ruden management. What do you actually do when you see rates move like we are seeing . William we try to take it manage of these low historic rates and if they move up a little bit so be it. They seem to be bouncing back and forth and tied into other world events. Tom do you believe that higher rates are a symbol of a better American Economy . Bill we were at low Interest Rates for a long period of time and as the economy gets better and jobs get more creative, we will start seeing rates normalize. Tom i will translate. We could not afford it last month, we really cannot afford it three months from now. Brendan looking just above the full on the wall street journal, home prices start to heat up. They give a brief list of cities. 13 jump in raleigh, north carolina. What do those cities having colin . Bill i think there are cities where people want to live they are cities were people want to live. I probably have a significant amount of Technology Particularly in raleigh, north carolina. In new york city we talked before about people moving from westchester to new york city. They want to be in urban areas. People want to live in urban areas. The millennialss want that culture, that open space. All those things that an urban setting provides. Brendan are we seeing a move from places like new york city to places like columbus, ohio please is that are urban but affordable . Bill the mayor has put forward a plan for more Affordable Housing, but you are also seeing totally new areas of new york getting reinvested in. And moving in those areas, which are affordable. 25 or 30 years ago, tribeca was the area. Then it was soho. Now you are seeing it in brooklyn. Now it is back to the upper east side, the best value play in new york city. Tom is it lemmings off a cliff that when rates start to go, every cfo says we have to act now . Everybody jumping in before janet yellen really moves . Bill obviously there is a difference between shortterm and longterm rates. She does not control longterm rates in the market makes those determinations, but i think the economy has been moving at a steady pace with job creation. Particularly with new york we have seen significant job increase. But unless there is a world event that really changes the dynamics, we will see a slow, steady increase in longterm rates. Shortterm rates i do not think we will see people jumping off the edge. Brendan tom i have this for you what is a story that you that will never end, but you hope ends well . Greece is the answer. Will the actions of jan us verify chris of Yanis Varoufakis by his country more time . Tom good morning, everyone. Bloomberg surveillance. Brendan greeley and tom keene. Lets go to top headlines with vonnie quinn. Vonnie the tornado that struck a small texas town destroyed almost 120 homes. Two people were killed when the twister hit in van, texas, 75 miles southeast of dallas. Four dozen others were injured. President obama is making it official. In a video released minutes ago, he confirmed that his library will be built in the city where he began his political career. The barack obama president ial center will be located on the southside of chicago. His foundation will move to a site Near Columbia University in new york city. Mcdonalds is revamping its drivethrough menu in a move to end the sales slump in the u. S. The wall street journal says the liberals largest restaurant train restaurant chain will only sell its topselling items at the drivethrough. Tom very good. Thank you so much. Coming up, lets look forward hear to the next hour. Tom brady you know the story he gets suspended four games. We will look at construction as well. Building in america. We have Something Special for you, someone who changed the design of america. Thomas obrien will join us on why your living room looks like garbage. He is really good at fixing that. He will be with us. He changed american design. Right now we need to change a tack and move across the atlantic. We are making faster progress no, not the united kingdoms labour party. Greece keeps on giving every day. Francine lacqua is in london. Give us an update this morning of brussels versus athens. Francine there are those go different trends to the story. First of all, finance ministers, including the greek finance ministers, are in brussels, and talks have been going better. It does not mean we have a deal. They still have to reach an agreement so that creditors, including the European Finance ministers, unlock aid to greece. But because it is getting better, people are more optimistic because, remember just four weeks ago it was a disaster. They slammed the door. Tom translate for me to impatient americans why somebody does not just sit down with greece and say no. Brendan that is what they have been doing for weeks. Francine which is what a lot of people inside Angela Merkels party are saying note to greece. Then they have no money and they have to default, which no one wants. I know it feels like we are talking about it every day but every day, negotiations are coming closer to bringing the parties together. Brendan let me get be on the specifics of this deadline that we have approaching. Is it right to look at athens and think that maybe they had a cometojesus moment and are changing the way they are negotiating. That we are seeing a slightly chastened Yanis Varoufakis . Francine i do not want to be too optimistic, but the tone is a little bit better. What finance ministers were angry about is the greek finance ministers giving them lessons in economy. So the tone is better. The tone can be better and they still do not have an agreement. What the European Finance ministers want very quick we have the tone of talks getting better, but we also had the deadline today of greece having to repay the imf. We understand they have done that, but it is by using money from the imf itself. They are buying themselves more time. Tom francine lacqua, thank you so much. Coming up in the next hour, we will look at the equity market. A chief u. S. Strategist at citigroup. Looking forward to that. So stay with us. Bloomberg surveillance. Good morning. Tom good morning, everyone. Bloomberg surveillance. Summer is here, at least for a few days. As we look south everything in site is owned by bill rudin. He joins us this morning. The development of real estate on his island of manhattan. Wall street falls within the spirit of investment across america. In tokyo rates could be cut faster and on bigger increments. The pboc could start taking loans that are destined to default off the books of the big banks and municipalities. Until now zhou has only initiated baby steps. Are you seeing any change in foreign flows in the u. S. Institutional real estate . Bill i think you are seeing tremendous demand for u. S. Real estate on all levels, from condos to Office Buildings to multifamily literally from around the world. Our buyers are mostly local buyers. 70 are local buyers. But other parts of the city are still seeing tremendous demand. Tom and oblivious to currency dynamics are net value . Bill obviously currency has an impact, but in some markets where currency has a hit, other players step into the market. It is a very robust market throughout the whole city and the country, particularly east coast and west coast in terms of foreign buyers. Tom within your world, if brendan or i are looking at a property, are we crowded out by an allcash foreign buyer . Bill you are not. There is diversity of product. In brooklyn, you want to be downtown. In our project, you want to be in Lower Manhattan or on the lower west side. 57th street, you have a lot of alternatives. Tom i think you got two shameless plugs in there in one minute. Double that puppy. Continue. [bell rings] brendan i want to take foreign buyers back to foreign locations. Two mistakes that japan made 20 years ago one is more fiscal stimulus. The other is they actually need to get toxic assets off balance sheets. China is not doing that. Tom it sounds like greece almost. Maybe that is the restructured maybe restructure is the word of the day here. Boko and we see a lot of chinese developments coming in to new york. Tom you think you have problems . Brendan you think you have problems . Tom brady has problems. Our twitter question of the day is tom bradys legacy tarnished . 127. Here is vonnie quinn with top headlines. Vonnie it was less than three weeks ago that an earthquake killed 3000 people in nepal, at now another earthquake has hit. First reports say at least four people were killed, and there are reports of some buildings falling down. Both sides are setting low expectations for todays talks between secretary of state john kerry and rush upon president Vladimir Putin. Rush upon john kerry Vladimir Putin a meeting 19 minutes from now. He wanted to persuade prorussian rebels to follow the terms of a ceasefire. John kerry also wants to see if russia can force a political solution to the fighting in syria. The eu is saying that there will be tens of talks on greece in the next few days. Greece assured European Finance ministers that the country is trying to strike a bargain on foreign bailout aid. But the process needs to be speeded up, and may take a few more the government of Prime MinisterAlexis Tsipras said it will pay the imf the money it owes them today, but pretty soon the country will feel the cash crunch. The liquidity issue is an incredibly urgent issue. Lets not beat about the bush and pretend otherwise. It seems to me that from the perspective of the time frame we are facing we are talking about the next couple of weeks. Vonnie greece is expected to there is a test vote of the senate on the controversial asian train deal. The senate is hosting a procedural vote on whether to give president obama fasttrack authority to negotiate agreements. The president finds himself at odds with his own party. Some democrats argue that the trade deal will hurt american jobs and wages. One of those is senator elizabeth warren. And the president has made it clear he disagrees with her. President obama elizabeth is a politician like everybody else and she has a voice that she wants to get out. I understand that. On most issues, we deeply agree. On this argument, her argument is not test does not stand the test of fact and scrutiny. Vonnie and call it a hangover from the soaring popularity of bourbon. Bourbon sales are up 35 over the past few years. Barrel makers themselves cannot find enough white oak lender because the lumber industry has not recovered from the crash of the housing industry. Smaller distilleries a and up making less bourbon. Brendan, i know you like a little bourbon. Brendan this is a bigger problem. I actually prefer whiskey. It is a big problem because the whiskey distillers in ireland and scotland use the used bourbon barrels. Tom is it a new barrel or old barrel shortage . Brendan both. They get disassembled pack in crates, packed in crates, and shipped to ireland and scotland. So a bourbon barrel shortage now is a whiskey barrel shortage in a year. Tom i love doing this show. I wake up i have no idea where i am going. Thomas brady sits above the fold of each and every new york paper this morning. It is not a very good morning for mr. Brady. Brendan not only is it on the front page of the New York Post it is on the back page as well. Roger that. What are the new york papers going to do when this is over . Tom they will talk about arod. Help me out here. The Indianapolis Colts got to play with a deflated football too. No teams control the football that teams play with. In some cases joe flacco of the ravens, for example prefers a deflated football. Tom were you surprised by this announcement . Away from all the fandom in boston in the business of sports . Was this good for football . Ray i think it is great for football if ev