U.S., Russia Tit-For-Tat: Surveillance (03/21)

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March 21 (Bloomberg) -- Full episode of "Bloomberg Surveillance." Guests: Jonathan Golub, Robert Burke, Felix Martin, Alan Patricof, Carter Cleveland, and Ruchir Sharma. (Source: Bloomberg)

America and europe go in search of a coordinated set of sanctions to punish russia.

Russia bars boehner, reid, mccain has six others.

The search continues for the malaysia air jet grid -- jet.

And ben are spending billions on bow ties.

Good morning.

It is "bloomberg surveillance.

" joining me is scarlet fu and olivia sterns.

Olivia has the morning brief.

Fitz ratings raised our outlook from negative to stable.

Russia was raised to negative, citing the sanctions.

We do have some basketball.

Coming out is tiffany earnings.

Darden is under review.

Everyone wants to see what will happen with the spinoff of red robin.

President obama will be meeting with tech ceos.

This is according to politico.

Will he dressed out?

-- up?

What will you wear to meet obama?

This is interesting to see what the mine which is -- language is.

Let's get to the data check.

Stocks, bonds, currencies, commodities.

Euro is under 1.39. then i went to the to the russian equity market.

The two year yield is what i'm watching.

0.42%. it will be fascinating if that comes lower away from that said decision.

-- fed decision.

Gold bounces higher.

Here is putin's headache.

Here are the equity markets in russia.

Down they go.

If they break lower, that is a big deal for the solidity.

A lot of investors called a made basket case.

Sharma from morgan stanley will join us.

Let's get the front pages.

We have to start with what is going on in russia.

Europe has raised the ante, toughening sanctions against ukraine.

They are targeting the inner circle.

They have added 12 names to the list of those who are hit with travel bans.

They had imposed sanctions on 20 business leaders.

Is the eu following america or is america following germany?

The question is, as kasparov has pointed out, when are you going to cut out these billionaires?

Why do we want to target capitalists in russia?

The elites prop up putin.

They have also imposed entry bans on u.s. politicians in russia.

Some went to twitter with a hashtag.

Mccain says i guess this means my spring break in siberia is off.

If these guys are running for reelection, they are like please, please.

Put me on this list.

He also says he will never into his efforts on behalf of freedom.

He was snarky.

It reminds us of what mitt romney says.

He said russia was the number one threat.

What is the endgame on the sanctions?

They will not say we are leaving crimea.

. we have signaled strongly that we are backing away from engagement in terms of foreign policy.

Not that we should not be talking here.

I do not know what we're looking for.

Our second front-page story is day 14 in the search for malaysian air flight 370. malaysian air is holding a live conference right now.

No positive news for the families.

China has now joined the search.

There are three volumes -- this is russell crowe, the movie from a couple years ago.

He devotes three books to this part of the earth.

There is nothing there but six rocks but the french own.

There are only pinged with.

-- penguins.

Difficult conditions for a search.

And there is a northern arc as well.

That explains how enormous the search area is.

They're looking for a hundred miles north and 1200 miles south.

Think about the draft too -- dri ft too.

And twitter is blocked in turkey.

The prime minister says they ignored court orders to remove content.

They mean shut down.

This is a big deal.

It is worth watching to see how these governments -- shut down the opposition.

It never ends well.

He promises to dig up twitter by the roots.

What is the difference between this and shutting down newspapers?

No difference.

It is the best thing that has happened for twitter.

They have been leaking documents about a probe in turkey.

We will talk to sharma as well.

Also joining us today, robert burke is the ceo of burke associates.

We will get to fashion in a minute.

John, did you change or equity call based on what we have seen and what we saw from janet yellen?

No, no change.

The market, after panicking, pulled back up.

I am not sure whether this was a misspeak.

Here is jon golub.

For mars, the idea of interest rates and what it will do.

The idea that we will see expansion that is counterintuitive.

Why do i see the markets to better if i have higher rates?

When rates fall, and is generally good.

When rates are low, it is a sign of a weak economy and mike of confidence.

When rates are low, it is about re-normalizing.

That is why the fed talking upgrades should be good for stocks.

What does that mean for use of cash?

Will that was companies toward spending on beals and acquisitions?

-- deals and acquisitions?

Having a lot of cash on your balance sheet does not make companies do deals.

To a certain extent, if the fed says that the economy is strong enough that we do not need to have rates, that will get companies to spend money.

Robert, you told me to buy michael kors.

I said i cannot buy it.

Ralph lauren to the moon.

The winners are minting money.

Dovetail the excitement into what fashion is doing.

Do we just assume they all go public?

There's a lot of interesting going public right now.

J.crew is a prime example.

I think that these big companies have been so well positioned and so strategic in entering international market.

Look at ralph lauren.

The growth has been unstoppable.

Bring this back to you, jon.

Will it continue to drive the broader s&p higher?

If you look at the consumer space, there is positive stories.

The media is on fire.

Look at the luxury goods industries.

They are on fire.

The for the average american -- whether a supermarket or a lower in fashion, that has been under a lot of pressure.

We talked before about tennen retailing and the competition from smart phones.

That is quite important.

And the ability to research today is greater than ever.

They go online and look at price.

They look at who is doing promotions and shipping.

It is highly competitive.

This a structural.

The companies need to adjust.

. the whole issue of discounting and using online.

That is a structural thing.

If the economy picks up, it should pick up the average guy.

That would be important.

You are long stocks?

Absolutely.

Robert burke and jon golub -- this will be fascinating on the debris.

What are there, eight fashion weeks?

Only three that matter.

Paris, new york, milan.

Let's get the company news.

Let's tell it like it is for gm.

Mary borrow will be testifying before congress.

She will testify on april 1. they want to know why it took the automaker more than a decade to recall nichols that had a defect tied to 12 deaths.

Gox has discovered 12,000 bitcoins -- 200,000 bitcoins.

It was used before june 2011. that was before matt miller became a bitcoin enthusiast.

Barclays lost out on the alibaba ipo.

That angered the founder because he wanted sprint.

The founder was asked to stop working with barclays.

People with knowledge of the matter -- who do you have a cup of coffee with?

Isn't that how banking works?

There is no intellect here.

This is quite personally contentious.

What happens is they went to help alibaba's rival.

It has kicked off quite a furor.

Iwatch basketball.

Let's turn to march madness.

It was a day for nailbiter sent big upsets.

Among the biggest surprises -- harvard beat cincinnati 61-57. cincinnati was favored.

Some are calling it the revenge of the nerds.

They were seeded 12th.

There were four overtime games yesterday.

What a great start.

North dakota state, dayton -- the back story is manhattan.

They gave louisville a run for the money.

Very cool.

I am losing to the president of the united states.

Barack obama 28, tom keene 24. we have a lot more coming up.

We will discuss whether j. crew is better off staying private or going public.

That is coming up with robert burke and jon golub.

You are watching bloomberg tv.

We are streaming live on your phone, tablet, and bloomberg.com.

? coming up, i am speechless -- why didn't we get this?

David roth, red sox nation.

I would've let you.

--wouldn't let you.

Early morning, david -- pl ease!

My friday is ruined.

Yankees -- i am tom keene with olivia sterns and drove through.

-- scarlet fu.

This is bigger than "game of thrones." the season starts soon.

Let's talk about j.crew.

Talks could restart again, but the price tag may be one reason -- the $5 million price tag means it would be valued at 20 times operating profit.

He does not like to over pay.

When he bought j. brand, he paid 11 times the operating profit.

He will walk away.

He circled, but decided not to do it.

He is ready to drop it.

My question is -- mickey has done an incredible job.

Robert burke -- he was a big player when gap was the retailer back in the moment.

What is their main value proposition?

Is it the link to mickey drexle r? he has put together a great team of people.

He understands product.

He has a retail footprint that has been successful.

That is not something that they have been able to do.

There is great synergy on that side.

Also, the desire to make a j. crew international.

Fast retailing wants to grow their footprint.

They want to compete.

If j. crew stays on its own, could they go public?

Why else are they going public?

I think that it could very well grow.

All of the elements are there.

What they have been slower on is the international growth and the appeal to international markets.

I want to explain what you do.

You go to kazakhstan or wherever, and you tell people building a mall how to do it.

Operating partners or development of malls.

They opened two stores in london and have done well.

We all desperately bought those stresses.

They were always strategic.

Drexler comes to you and says we need to go into --pick a country.

Singapore.

We look for a local partner that understands the market and would do some kind of joint venture.

And amend the merchandising?

Where do you live?

You come into 79th street and madison?

There are a number of factors.

There is real estate access and the local market and being able to operate in a local market.

It is very different in the middle east.

Is kashmir all the same?

-- cashmere all the same?

No.

there is chinese cashmere and italian.

It depends on the fiber.

And how it is woven.

I want to ask a question.

I know you do not necessarily go shopping at j. crew -- people have observed this is a company with pricing power.

Do consumer companies have pricing power now?

No.

there is very little inflationary pressure.

Maybe the answer is -- for brands doing well, there's pricing power.

When i talk to institutional investors, if they can find brands, they're willing to pay companies.

You can only hear that here.

Scarlet fu goes after j. crew on their cashmere.

The italian cashmere.

Not me, it is fu.

They make the manufacturing.

Continuing with the theme, our question of the day -- are men splurging more on close than they were before?

Tweet us.

Do not forget to pick up the latest edition of bloomberg businessweek.

It is the design issue.

On the cover is a new head design.

-- head designer of the gap.

She is supposed to turn this company around.

We will be right back ? good morning.

I am tom keene with scarlet fu and olivia sterns.

She has our top headlines.

Police and protesters clashed in venezuela after the government arrested two opposition leaders.

The antigovernment demonstrations began in early february.

They were charged with violations related to unrest, including removing barricades.

And fitch affirms its aaa rating on the u.s.. they warned a downgrade was possible by the end of this month.

The outlook improved after congress moved to suspend the debt limit until next march.

Major league baseball opens its 2014 season with a pair of games down under.

The los angeles dodgers will play the arizona diamondbacks in australia.

The sydney cricket ground have been converted.

I am all over that.

I'm ok with those hours.

Have you ever watched cricket?

Fabulous.

It can last two days.

It sounds like baseball.

John writing has tried to explain it to me.

Is a wonderful way to spend an afternoon.

Here is olivia sterns with the morning must-read.

The timidity trap is what we're talking about.

We have become a custody -- accustomed to conditions.

People seem increasingly to be accepting a miserable situation as the new normal.

He gives spain as an example.

They grew 0.5% last year.

The youth unemployment is still 55%. i brought this up yesterday at quinnipiac college.

The headline out of janet yellen is what olivia talked about.

We are used to 2% gdp growth.

Would it be great to see 3.5%, sure?

But a slower recovery is likely to last longer.

I'm not sure that is a bad thing.

It has been week, but it is progressing in the right way.

If you look at spain, the bond market says it is getting better.

Shout out to tom fratelli.

-- procorcelli.

We will talk about if boe thinks central banks need more power.

? good morning.

Good friday morning.

Let's get to a data check.

Futures are up five.

10 year yield goes nowhere.

That is coming off of the yellen press conference.

Nymex back under 100. maybe the two year yield gets my attention again.

Not doing much this morning.

But go to scarlet fu.

Starbucks is trading sent -- at the highest since january.

This is after 4:00 --they're going to start serving alcohol.

They start selling liquor after 4:00. pandora is another big mover.

Down 3%. they are raising prices for some listeners and subscribers because of rising cost.

You cannot make money in stocks.

They can turn things around.

The shot in the morning -- amazing how that works.

That flask you got in sochi -- there were no liquids he were near sochi.

It is 320 years old.

The bank of england needs a major reform.

That is according to mark carney.

He is attempting to drag them into the 21st century.

We take money for granted.

Carney, yellen, and draghi do not.

Felix martin is in author of a new book and he joins us from london.

Congratulations on the reviews.

Your book is getting rave for use.

What does my audience not know about money?

The most important thing that one needs to know is that -- the story of where it comes from is not one you usually learn from a textbook or from books f or children.

In the beginning, we barter, then someone has a medium of exchange.

Then people accepted that and went it out.

That is not true.

Governor carney is the focal point.

What does he need to do?

I think he has done some pretty impressive stuff.

First of all, the people that he has appointed -- he has made them in from the imf.

He has brought in andrew as the chief economist.

These are impressive people, of the caliber that most central banks would kill to get.

I think that is important.

The really big question is not technical.

It is political.

I think he has made another important move.

He is introduced this new mission statement for the bank.

It is promoting the good of the people.

You have a chapter -- the national history of the vampire squid.

Is it bank of england or federal reserve?

Vampire squid is a reference to the moniker that was given to goldman sachs.

Mr.

carney is an alumni.

The real history of taking cash where it came from and how it started and what is the significance.

You're calling for increased global coronation.

Do you feel that they have the lyrical license to make international agreements?

That is absolutely the key point.

Mark carney is doing the right thing in the u k by making clear that central banks have a much more broad mandate than we thought before the crisis.

They were narrowly focused on price stability.

He is saying we need to look a great deal more to ensure monetary stability.

In this globalized world, there needs to be international cooperation.

That is where you need political license.

I'm not sure any banker has that.

In her book, the subtext is the unauthorized biography.

You chronicled the role of money throughout history.

Where does bitcoin fit in?

Bitcoin is a very interesting phenomenon.

It has two aspects.

One is a red herring.

One is potentially quite revolutionary.

The red herring is when people have focused on so far.

That is the private money.

Bitocincoin themselves.

There have been lots of private money send they can work.

That is great.

They tend to have a limited appeal.

The other aspect is the payment system.

The distributive public ledger is incorporated.

That is a revolutionary advance.

Can anyone get rich by investing in bitcoin?

No, that would be concentrating on the first aspect.

It is a speculative asset.

It has a small appeal but a global audience.

That could grow into something big.

The really big thing will be that second aspect, the payment system.

Thank you so much.

The book is "money." it is remarkable.

Can't say enough.

It is a readable history about a lot of stuff we take for granted.

Here in new york, popular bike sharing program has hit a rough patch.

Leaders are scrambling to raise money.

That is according to the wall street journal.

One problem is the bad weather that discouraged people from renting a bike.

The other is their popularity among users, who account for relatively little revenue.

They can ride the bikes for $45. we go to "surveillance" by greater, robert burke.

Is this a success?

I see them used downtown more than uptown.

Have you ever written one?

Once.

From bergdorf -- that was it.

For those of you worldwide, help us.

In front of the plaza hotel, where redford and streisand did that great scene, there are now a bunch of bikes.

This takes up valuable parking space.

It is on my list to do.

When the weather gets warm.

Olivia, you said it.

I would love to go on a nice day and take a ride during lunch.

I am free at 8:00 and -- 8:00. i used to do bikes all the time in london.

There nice and paris.

The roads are crazy in new york.

To your point, i think there is a real difference.

I heard they had naked biking races.

When you see someone -- i don't want to go on that thing.

You are so wise.

Next up, is mcdonald's committing wage theft?

We look at the single best chart next.

? good morning.

Let's get right to the top headlines.

Olivia sterns has both.

Crews from australia and new zealand resumed a search of the indian ocean for debris possibly links to the missing malaysian airlines jet.

They're concentrating on an area south east --southwest of perth.

They're trying to pinpoint the search area.

Turkey has blocked access to twitter.

The prime minister says that the microblog or ignored court orders to remove tweets related to a government corruption scandal.

The move comes 10 days before a crucial election in turkey.

Those will come on march 20. twitter is encouraging them to use asked messaging instead.

Major league baseball is opening its season with a pair of games down under.

The dodgers will play the arizona diamondbacks and australia.

The sydney cricket ground have been changed into a baseball stadium.

Sydney platypuses -- platypi.

I thought you took latin.

That sounds about right.

Let's go to a non-australian single best chart.

This is about the u.s. we are increasingly a fast food nation.

Wages are headed in the wrong direction.

We crunched the numbers provided by the labor department and the yellow line shows the increase in proportion of u.s. workers in the fast food industry.

It is now three percent.

Almost 4 million.

That is an increase of 400,000 since january 2009. the white line goes down and shows the inflation adjusted for these workers.

It has fallen four percent since january 2000. are there to america's? there's is a whole other america, isn't there?

I'm not sure that the minimum wage is the discussion.

The majority of owners are teenagers, not people who are heads of household.

You do have a top 10% that is doing extremely well, partially because they refinanced their homes.

The 80% of america is really under a lot more pressure.

You are living this in retail -- what is a retail person make?

It has not increased substantially in the last 10 years.

I think that also, there is often a base in the commission structure.

It can fluctuate.

Not much different from mcdonald's? a little different.

We have photos.

We're going to china.

Michelle obama is there.

Our number three photo, she is touring the forbidden city.

That is with her chinese counterpart.

She is the wife of the president or.

They are both known for being fashion icons.

They both will be tracked closely on what they wear.

Michelle obama has done a great job of moaning american fashion.

She has been very effective.

You go up to bergdorf and it is like a jackie onassis.

Another time and place.

Should the first lady dressed fancier?

She is dressing and a modern way.

She has done a lot for young designers.

She has represented a modern woman.

I love that she wears target, j.crew.

She put jason wu on the map.

She wears a $7,000 dress and h&m shoes.

She shows her how to hold a calligraphy brush at a school in beijing.

This visit was focused on cultural exchanges.

The white house insists this is a people to people exchange.

I think i see a daughter there.

And her mother.

Is a girl strip.

-- it is a girls trip.

The first lady plays table tennis.

This is in beijing.

Malia accompanied her.

And there is her brother.

-- mother.

She can do the whole plank saying -- thing.

How bad are you a ping-pong?

We have a ping-pong table in our living room.

I want to see that.

Can you do this thing?

Careful, tom.

I am not sure if you can spin a ping-pong ball.

Remember when we first saw ping-pong?

I remember.

The chinese came over.

The school do on it.

We should have a "surveillance" ping-pong match.

Table tennis tournament.

There was michelle obama in her finest.

Let's talk about men and what they are doing.

They're spending more than ever on apparel.

What retailers are reaping the rewards?

Our men splurging more on clothes than they were?

What is your bowtie today?

Hermes.

You only where hermes.

We will be right back.

? good morning.

The entire building is sanctioned by russia -- getting.

-- kidding.

John is pacing back and forth.

They will not let me go to siberia.

Russia hits back and sanctions to capital.

It is tit for tat.

That get you more from the files of "bloomberg west." the netflix ceo is saying that broadband providers should not be allowed to charge providers like netflix a fee.

Hastings is concerned about them raising the price over time.

At symantec, they have fired their ceo after two years on the job.

He struggled with a shift to mobile devices.

They are often bundled with new pcs.

The sales growth has slowed as well.

And mount gox says it has found 200,000 bitcoins in an old wallet.

That is the same amount that went missing last month.

The file where they were found was used before june of 2011. that is company news.

What is the significance?

Maybe there are others that will be discovered.

Probably not enough to resuscitate the exchange.

I think i should cover that.

I would do a great job.

Maybe they'll find the guy with the wallet.

Retailers are embracing a renaissance.

Men are spending more than ever on cltothes.

What have you been doing?

Spending too much on clothes.

Our guest is a luxury retail consultant and the former vice president for bergdorf goodman.

Robert, break it down.

Mark zuckerberg has made a staple of the hoodie.

It is about having more access to fashion today.

It is more acceptable.

10 years ago, we used to base a lot of urges is on women going and shopping for their husbands.

Today, men are shopping for themselves and being very comfortable with it and being very specific.

I think the best thing that happened to the industry in the long run was the economic downturn.

That shook up everything.

May i suggest that we all wear chinos?

Then, we had "mad men." fashion is affected by tv shows.

"mad men" was a pivotal point that made people look at fashion in a different way.

There are certainly influences when it comes to movies.

We are experiencing something greater than a fad.

This growth is happening not just in the united states, but around the globe.

Look at germany or the u.k. look at china with the new rising middle class.

What is the next growth area?

Accessories?

Man bags, come on.

I hope i don't see too many man bags.

The reality is, men are carrying more devices.

That is not going away.

You look at how you can personalize an iphone or an ipad.

Certainly, bags are a big growth area.

What is cool on wall street right now?

Are you still doing the duffel bag?

The biggest change is big, heavy briefcases.

We can move to.

Nothing.

I think you would starve if i was your example.

Not quite -- we are seeing big changes in tailored clothing.

That is the biggest thing, suits.

The younger generation finds suits very appealing.

The generation before them looks very professional.

There are brands that are bringing down the prices.

We have people like suit supply, j. crew.

Who makes your suit?

This is not j. crew.

They are out of naples.

Opened a store on madison avenue about a year ago.

Minus out of chicago, illinois.

Oxford.

It is like a bunch of seven-year-olds in a factory.

I am 53. they are one of the classic american-made suits.

You do not have to spend $2000 for suit.

You can spend $450 and look really good.

Like j. crew.

How about sweatshirts that have made it as fine menswear?

Hermes has a sweatshirt.

Where is that appropriate?

I have a feeling you'll see it on a few first-class flights.

As i show my dexterity, real is in.

Click on bow ties.

Talk to us about online shopping.

How has it shaped the industry?

Our men brand loyal?

Them my convenience.

They are creatures of habit.

They are lazy.

You could say that.

When they find something that works, if you can fill their needs and continue to replenish that, you have won them over.

I go back to j. crew cashmere -- i buy a lot of different kinds of kashmir.

When you own the customer, you just have to keep them content and supply them.

And an important moment for us.

Robert burke, brown shoes or black shoes?

I am wearing black, but i am more on the brown side.

Very good.

Fabulous.

You can have a cocktail party.

Is the twitter question of the day -- our men splurging more on close than they were five years ago?

Tweet us at bsurveillance.

You were just talking about champagne.

In france, they have something to get excited about.

Overseas demand for their product -- a trade association says that export demand will drive the sales of the next decade.

It seems that sales of french champagne grew more than -- fell more than two percent last year.

Asia cannot get enough.

That is where the growth will come from.

Driving up the wine prices.

Sales doubled in china and the last four years.

The top export markets are still the u.k. and the u.s.. thank you so much, robert burke.

Jon golup, thank you for your optimism on the markets.

We need to do that and foreign exchange very quickly.

Forex report -- dollar canada is $1.12. we will have much more for you.

? america and europe are going after a set of sanctions to punish russia.

The search continues in an isolated spot for the malaysian air jet.

It makes for inhospitable conditions.

In art galleries they quake in london and new york.

Is jeff pesos introducing amazon art.

This is bloomberg surveillance.

It is friday.

I am tom keene.

Joining me is scarlet fu and olivia sterns.

Throughout his 40 year career in private equity an early investor in smart ups -- startups like office depot.

You might have heard of apple.

Let's go to the ratings action.

But star what happened in russia.

Russia's outlook was raised to negative because of the sanctions.

No economic data in the u.s. today.

There are some turning data.

Tiffany has topped their all-time high.

President obama will be meeting with tech ceos again about the nsa.

Arco zuckerberg is expected to join the sit down.

This is according to politico.

We will have to see.

It will be an important meeting.

The body language could be a big deal.

Let us get to his company news.

Mary barwell will testify in front of a house subcommittee about gm.

They want to know why it took the automaker a decade to recall vehicles with a vehicle ignition problem.

Top money manager plans to lose -- leave to open his own hedge fund.

He will back a new venture with $200 million.

Barclays are backing the wrong a billionaire.

They are losing out only ali baba ipo because they tried to buy sprint.

South bank owns 37% of alibaba.

This is all according to people with knowledge of the matter.

That was company news.

Barclays wanted to help tennyson.

Another story, the search team will continue tomorrow.

There is still no positive news to inform a families.

They have deployed ships and aircraft.

They're still searching.

It can't extend hasn't found any traces of the plane.

Flight stimulator data results are expected soon.

It is night in australia.

If they go into saturday morning, they are searching at night as well.

These are inhospitable conditions.

Rough seas.

The weather has not been helpful and have not gotten a lot done a. this is obviously day 14. let us move onto the other big political story which is four tet sanctions between the u.s. and russia.

There was one particular exchange in 2012 between obama and mitt romney during a presidential debate.

The president ridiculed romney for saying that russia was the biggest global threat.

I'm glad you're recognized that al qaeda is a threat.

A few months ago, you were asked and said russia was the biggest threat to the penn state.

The 1980's are calling and asking for their foreign policy back.

Was the president wrong back then?

Are we seeing a return to the cold war western mark it does feel like we are turning back the clock.

Nobody expects a full return to the cold war.

It is just not going to happen.

You have escalating sanctions against the two countries.

There is a hot economic war between these two countries.

This is not what anybody tried debt expected when the president tried to reset rep -- relations with russia.

Nobody saw this coming over the last couple of years.

Since the fall of the berlin wall, you can see from defense spending and economic outlook, these are not two superpowers dominating.

If this is going to be a painful economic fight.

It is not clear what the offramp is for putin.

When will president obama stop escalating the sanctions?

He may not get it for some time.

Russia struck back with some sanction of its own.

It has created entry bands for politicians like john mccain.

No better thing for a congressional campaign in this midterm election year that it he put on this list of russia travel bans.

Mccain is not running for reelection this year.

He was glad to be on the list and will cancel his siberian vacation.

The same thing is happening in russia.

Those put on the u.s. list are treating it as a badge of honor.

It is good domestic local tools.

What is the relationship with the russian mc in washington?

It is awkward.

It is not just the diplomatic corps here in washington because there is a lot of tension.

I said this the other day, the top player in the national hockey league is a russian and a friend of putin.

He plays for the washington capitals.

This is an awkward moment in the locker room i would imagine.

Nobody expected this.

The u.s. and russia business council have been working very hard and aggressively to promote business relations.

That relationship is really in trouble right now.

He was fabulous the other night.

He is always fabulous.

On the go is reporting that the president will be sitting down with tech ceos.

Mark zuckerberg is expected to join them.

What will be on their agenda?

A couple of things.

This is not the first to meeting the president has had with these ceos in the last couple of months.

These have been some tense meetings.

It is a friday.

That tells you that they will not be putting a lot of attention to it it will be closed to the press.

We will not see or hear much.

This is been an area of tension because of the nsa.

Sucker berg was very -- zuckerberg was very outspoken.

This is been a real area of tension and a source of challenge for the president given his ties to the technology community.

They have not been happy with this white house.

Maybe there will be a meeting of the minds.

Peter cook is our chief washington correspondent.

Alan patrick off has a career in private equity.

He has -- zuckerberg is visible.

And the president is struggling.

Your support for hillary clinton.

Would she have handled the tech community differently than we have seen from barack obama?

She had a different style.

In this particular circumstance, this takes a lot of handholding and relationship building.

I don't think the president is the best in these softer skills.

She expels in those.

What tone should zuckerberg take?

It would not be a good idea to be hostile.

There is a way of getting a point across.

The technology community is very concerned about this privacy issue.

What is a 30-year-old ceo like zuckerberg say for the rest of the industry?

It is hard to believe that he is 30 years old.

Nobody speaks for the whole community.

It there are people who speak loudly like larry ellis and larry schmidt and the google guys in general.

I think he carries a big voice.

He has a very large market value and he creates a lot of noise.

He gets a lot of think, as they say.

What do you hear from them about how concerned they are about government intervention westmark the ones we are talking to have not gotten to the point where they worry about that.

They don't worry about interest rates.

They are working on equity and funding.

They don't think in larger terms.

It isn't until the time they get to the size of google or facebook.

Are you having fun in the equity market?

That is a good question.

I'm having more fun now that i have for the last 40 years.

The last six or seven years since i started my most is in career has been timed accidentally.

The internet has been a stronger.

The whole and firemen has been very positive.

His optimism in his seventh career.

We will talk about amazon of the art world.

? our guest host is alan patricof.

The democratic party is convoluted.

Not just focusing on issues like the minimum wage, what does it signal?

People are looking toward 2016 more importantly going forward.

We have got to -- there is a little bit of schizophrenic feeling right now.

The president is not as strong as he might be as a fundraiser.

The democratic national committee is got to get stronger in order to prepare for the next election.

The republicans are ready -- raising a lot of money.

How does secretary clinton respond?

From everything i know, she is playing a very low-key.

She is focusing on writing her book.

That is her most intense effort.

She is trying to stay out of the front line of politics for the moment.

How do you know when a president is a lame duck coach mark he is slightly wounded.

I think the affordable care act if we look back on it 10 years from now is going to be one of the seminal great political -- countrywide moves like the civil rights movement.

Mitt romney said republicans are doing well raising money.

Who is the lead candidate?

Do they need to move to the center to compete with the democrats?

There's no question about it.

They are trying to make friendly with the hispanic community.

They are trying to show that they are more human.

They are looking at a women's equal pay.

They're going to be disenfranchising.

Is christie centrist enough?

The question is whether he can recover enough time for him to come back in the good graces of the general populace.

He is been wounded very badly.

Had we bring the 99% toward your one percent?

It is a real concern.

I've signed my name to petitions on the minimum wage issue.

We have got an issue in this country with bringing up a certain part of the population.

They need to come up into a better economic position.

We have to deal with that problem.

Alan patricof is with us.

It is well designed look for that on newsstands and.

Up ? good morning, everyone.

It is our twitter question of the day.

This is the eighth anniversary of twitter.

Armin splurging more on close?

-- our men splurging more on close?

Are you?

I think so.

Tom spence disproportionally on his bowties.

I am tom keene.

Unassertive venezuela.

Protesters clashed with police after leaders were arrested.

They were mayors of towns were the anti-government demonstrations began.

They were charged with failing to remove barricades.

The search will continue tomorrow for the malaysian airlines jet.

They are concentrating on an area of perth, australia.

Michelle obama is at a beijing high school to start her trip to china.

She was greeted by the wife of the chinese president.

She tried her hand at calligraphy.

She is trying to humanize relations between the u.s. and china.

There she is with her two daughters and her mother.

Show the flag.

Her mother helps to push the idea of three generations living under one roof, which a lot of chinese families do.

Amazon art is the place art lovers and the shoppers choose from $25 photographs to $500,000 oil paintings.

There is free shipping.

Arts ceo carter cleveland is weighing in.

You found a company called artsy . you have a 50,000 pieces worth of inventory.

Why would somebody use your service question mark we focus on the educational aspects.

We are trying to empower consumers to enter a market that has traditionally been an accessible and intimidating.

In addition to allowing people to learn more about the artist or the artwork, we provide auction it aided to give them a sense of the market.

That ushers in an era of vice -- price transparency.

If you wanted to know a price in the past you would call a dealer.

You have a level of transparency.

What is the impact?

That is a great question.

We are a platform for the galleries.

We are like a yelp for galleries.

It is up to the gallery how they want to interact with the consumer.

For some galleries, they are getting consumers the ability to buy the work immediately using credit cards.

At higher price points, it still becomes a conversation.

Is amazon art a threat?

I don't think it is a threat to either.

It is great that amazon is coming into the space and opening up to more people.

They seem to be focused on a category of art that is more functional.

It art that you want because you have space over your couch as opposed to something that is more aspirational and something you buy because of the brand.

You work with blue-chip galleries.

If you are spending that much money am movie collector wants to look at a piece of work in person and develop a relationship.

You get cut out very the galleries pay listing fee.

We allow them to do in person doing it.

All sales tend to happen in person.

The global distribution of collectors around the world, when sales are reported, the average distance is 2000 miles.

You want to see the work in person, but in most cases you don't -- aren't in the same city.

I read that nobody.

He for asking rice.

How do you haggle over prices?

For the lower price point works, they can buy directly.

Even for the low prices?

We just facilitate the introduction of the gallery.

We are a platform for the galleries to have a larger audience of collectors around the world.

This is really important.

Could a gary hume get started today?

Could he get started today without your dealer network?

I would suggest that guys like that have to have your world?

I think it is true.

It is hard to ignore the number of people today who prefer the convenience and access and privacy of their own home.

We've seen a huge uptake in the iphone app.

This is the way people want to consume it.

Out to bring in alan patricof on this.

He has a startup.

They're skipping the middleman.

It artist can sell directly.

How would your site compete.

Julianna schnabel would not like it.

We started a company a couple of years ago and we helped expand.

It now has connected 100,000 artists around the world.

It is dealing 121. it is the whole idea of connecting someone who has a piece of art and wants to sell it and somebody who wants to buy it.

It is the great equalizer.

If there are no galleries.

Alan patricof, secular join us.

? good morning, everyone.

I can see them.

Then climbed a distant tower.

It down at the end of manhattan.

A 60-year-old is climbing that tower.

He got inside, he did not climb the outside?

He is going to get charged with a minor misdemeanor.

It then he will sell the movie rights.

It is a beautiful new york city this march morning.

This is "bloomberg surveillance." let's get to some company news.

The company raised the outlook for the rating from stable to negative.

Last october they were warned of a downgrade was possible by the end of the month.

Congress suspended the debt limit until next march.

Microsoft is losing a board member.

He was a member of the search committee that led to the new ceo.

He is focusing on his full-time job of seagate technology.

Top money manager is leaving steve collins company to start a hedge fund firm.

He will back with more than $2 million.

This is according to someone with knowledge of the event.

Steve: is running a family-run firm.

Has he been charged with an thing?

No.

that is a very important point.

He has not been charged with anything.

He has not been charged.

They are still looking at.

He is not been charged.

Until somebody gets an indictment or some charges, he is an innocent person.

You are still innocent until proven guilty, right bus to mark --? we trust online at reviews for dinner, one at doctors.

The real goal here is to steer consumers to turn to the web as a resource for the complicated offers of obamacare.

The chief marketing officer is here.

Tell us about the difference between something like a vitals and other sites.

We operate in transparency and.

We believe in quality and access.

For the consumer to rate -- make the right decision, there is a lot of talk around cost.

You cannot make a great decision if you do not know how good that dr.

Is.

you can't make a decision if you couple that with how much it costs.

Does it take my insurance?

Do they take new patients?

It is the data that you slice and dice and put on the website for consumers.

How do you avoid too much information?

There is no shortage of information available.

We know too much information can give rall is this about making decisions.

We have a lot of data.

We have one million providers in the u.s.. we apply consumer technology.

We can browse the data.

We offer data around things like education and awards.

I just looked up your site, how much the doctors hate you?

They're looking for better relationships.

In able to heaven and forms patient gives you better dialogue.

They are able to have a more productive relationship.

How are you making your money?

Is a free service.

The website is monetized through advertising from pharmaceutical partners.

You can tell basin which insurance plan what dr.

Will take you?

We also have a databased platform.

We work with house plans to provide transparency tools around dr.

Information and cost transparency and appointment booking.

You invest in vitals.

Why is this a good area to go into?

I certainly hope that someday it will be applied to us.

Vitals deals with the consumers.

It deals with the health plans and the hospitals where it is focused on more information.

That is the fastest-growing part of the business.

We are providing the affordable care act information to everybody.

Thank you so much.

It went to get to some headlines right now.

Putin has signed a law completing crimea's annexation.

Good morning, everyone.

I am tom keene.

Good morning to all of you worldwide.

Scarlet fu is with me olivia sterns is with me.

Alan patricof is with us.

We're looking at any number of ideas.

The news is breaking a bit ago about mr.

Putin taking a crimea.

He signed the laws completing their annexation to russia.

That is a done deal on his part.

This is up the west has condemned.

The ruble is stronger and that is good for food and.

-- esther putin.

Markets are starting to find their footing.

You have upcoming elections double added to the volatility.

Turkey is heading to the polls this month.

He is the author of breakout nation.

We have to start with the breaking news it happened overnight.

The prime minister blocked twitter in turkey.

It this is taking the political tension to a new level.

Turkey signified what is going wrong with the emerging markets.

This is the star performer of the last decade.

Now you have a leader that has overstayed his welcome.

They have a large deficit.

It they have a lot of domestic debt over the last five years or so.

They have the perfect storm waiting for it.

He is a populist turned pragmatist.

Now that they have to face up to the debt that they have piled on and the short reliance on foreign funding, does that work in solving the problems?

They changed.

That is what happens when leaders stay in office for too long.

After seven or eight years, they overstay their welcome.

It makes hard to modernize.

Your book had this huge impact globally.

I congratulate you on that.

Are the bricks data?

The brick markets are down 50%. that has been my theme.

Every decade, the subsequent decade that disappoints.

We see iron are -- or rollover.

This is a weakness in commodities.

One decade up, two decades down.

We had a great decade and after that we will see a huge supply reform.

There's been a 600% increase in energy and materials.

We are seeing a slowdown.

The demand in china is slowing down.

We saw chinese demand really slow down substantially for oil.

Now it is possible that chinese demand for oil is negative.

These are big changes that are going on.

Go back to the election theme.

Turkey is having an election this week.

We also have an election in india in april.

Alan patricof, do you look at these local events as opportunities to get in?

We invested in iceland.

We invested in ireland and estonia.

In all cases, they developed technology.

They come to the united states because that is are the market is.

We wait until they taken the technology from other places and deal with our markets.

That is were they monetize.

What kind of impact will these sanctions at the u.s. and the eu going to have on russia?

What would it take to really put pressure on putin.

The economy was already in trouble before this happened.

Last decade, 1.3%. this year they were struggling.

This is an economy that is already under siege.

These sanctions will make things worse.

? billion right to headlines.

Putin has just signed laws completing crimea's annexation into russia.

They have absorbed crimea.

The bill has been approved in the top house.

Turkey has blocked access to twitter.

Ittweets were not removed from a government scandal.

This comes 10 days before an election.

Major league baseball opens its 2014 season this weekend with a pair of games down under.

The los angeles dollars -- the dodgers will play the arizona diamondbacks.

You can catch the first game at 4 a.m. east coast time.

A massive shadow to manhattan of new york.

They almost beat louisville.

The big of say was harvard's window.

The big upset was how bad my bracket is.

Who do you winning in your bracket?

I am an ohio state fan.

Dayton took them out.

We did to the morning of movers.

We're going to check on the mounties.

-- commodities.

Everything that you expect with copper comes back to china with the slowdown there.

That is going to be a big focal point for whether copper continues its slump.

One of the world's great authorities on this linkage of commodities to finance is with us this morning.

He is morgan stanley's head of emerging markets.

Our commodities soft because of the trends in asia?

I think it is a combination.

These commodities one up a lot in the last decade.

They were up 1000%. now we are seeing a massive supply response across the board.

The demand is slowing down.

This is what is causing this.

Goldman sachs is been right up the financial transactions for iron ore in china.

Explain that please.

It is used as collateral.

What is going on is as the firms have tightened, they have come under pressure.

That is what is going on with copper.

I don't think this can cause a crisis.

The debt that china has became livid over the last five years is unprecedented for any emerging market.

Have fun in the summer and read this book.

Don't forget to pick up the newest addition of bloomberg businessweek.

It it the new design issue.

? i am in morning.

We will be bringing it baseball spring training.

Michael mckee is already heading out to florida.

He tried to do the florida arizona junket.

He will be in florida on monday.

Scarlet, it is the yankees.

We're not showing the yankees.

For those of you on radio, it is a guy named derek jeter.

He could not look better.

We promise we will mention the red sox on monday.

It is bloomberg surveillance.

You have company news?

It is a tech themed company news.

Reed hastings once bigger regulations for traffic.

It steve bennett was let go after the company struggled.

It is often bundled with new pcs.

Microsoft loses a board member.

He is stepping down from the board.

He was a member of the search committee that led to the new ceo.

He said he is leaving to focus on his full-time job as ceo of his own company.

Bell system breaking news.

Media general will buy when media.

-- lynn media --lin media.

Richmond, virginia.

I started that country -- company in 1965. it used to be in nashville.

Is the price worth it?

You're going back a lot of years.

It is an old southern franchise.

Would you please explain the romance warren buffett has with old-line print media?

Who is going to disagree with warren buffett?

We are of the same advantage.

He has followed a career.

I am dealing with startups and young companies.

Let's open this up to wall street.

Give it back to the shareholders during that is an anti-alan patricof.

We are dealing with tricking capitalization.

It is a fear of value in investing.

Carl has his own strategies.

Hasn't gone too far?

Have they moved the needle too far?

Things always go too far.

It is an appropriate thing.

There is some excess cash.

They don't know what to do with it.

That is an appropriate use of cash if you have no growth prospect.

The you -- young turks of silicon valley full of themselves?

We're not even close to that.

There's is so much dynamism in the technology world.

Everything you read every day and what i see every day, we had only six new start ups in just one week in new york.

Had 24 in our los angeles office.

What is the distinction?

What makes you lean forward?

The only one feature that i care about is does it have some differentiated product or service?

The problem is there are too many imitators into many look-alikes and people doing exactly the same thing you.

There are not that many unique ideas.

You're not the only one out there.

This is just a fraction of what took place in this city and it is happening all over this country and all over the world.

How do media moguls fit in?

According to our media editor, he has the motivation to build a competitor to comcast.

What if someone like john malone what is his next move?

He is acquiring major companies.

You can't move the needle when you get that big.

It if you want to have a strategy approach, you do that.

And there are companies that have dedicated tools of capital they use for that purpose.

I don't see him doing that, at least not so far.

To your opinion on this.

They're trying to raise money to cover losses.

One problem is bad weather.

They pay $95 a year and can ride the bikes for 45 minutes at a time.

They are city bike sponsors.

I probably is i live in an area above the 57th street where there are no bike lanes and locations where you can get one.

I have to pass on that for the moment.

I love the trend.

You can see it in paris and london and all over the world.

I am happy it is here in new york.

Didn't i see you do that?

I do ride bikes in need hampton every weekend.

You have one of those leather seated bikes?

It would be a hybrid bike.

I write it 20 miles every saturday and sunday.

Let us get to our agenda.

Mine is important.

It gets us to the weekend.

It is march madness and did we start with a bang last week.

It harbored a gets it done that.

There is something about anybody on these more academically inclined to schools.

Harvard gets it done.

Dayton in an ohio battle.

You can go off to radio now.

And my agenda is the annexation of crimea.

How much is this going to cost?

It is going to be a big number.

It could cost $20 billion over three years.

They have to build a bridge to connect time you and russia.

It is going to be a huge cost.

A quarter of the population are pensioners.

Twitter turns eight today.

There are nearly 500 million tweets being sent every day.

100 million people are tweeting every day.

The bulk of traffic comes from people like tom keene.

40% of people who have twitter accounts don't tweet it all.

Do you tweet?

Do you do it to prop up companies you invest in?

I only believe in tweeting something with significance.

If i saw some economic maneuver or i saw a development, our question of the day is our man splurging more on clothe s. yes.

I talked to about trunk club.

At taylor once told me that close speak a thousand words.

Man purchase more.

You used to own the details magazine.

Are we in a renaissance?

I went to think that.

In the loop is up next.

Have a great weekend a.

This text has been automatically generated. It may not be 100% accurate.

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