Of the national bailout. The new contract, which will be reflected in a midterm land for National Reconstruction will respect rules of operation but will not condemn the Greek Economy with conditions for any irrational and unreal i may serve buses, another name for austerity. World war ii reparations from germany. Also speaking moments ago saying those who bet on a greek failure are playing with fire. European stocks are down and so are greek on spirit finance ministers meet on wednesday to discuss giving more money to grease. And nissan is raising its forecast for the year, being held by a weaker yen and stronger demand in the u. S. That may help the company offset the impact of russia and slowing growth in their own home mark it and slowing growth in china. And you have to pay more for your gas. The average price of regular gasoline jumped almost . 13 in the last two weeks to 200 to to dollar . 20 a gallon. 2. 20 per gallon. Falling prices have led to a slowdown in drilling. The cartel says supply will only grow half as much as it did last year. In the british newcomer the big winner at last nights grammys. Best new artist and pop vocal album. Beyonce and he each won three grammys. What a night. Breaking numbers from mcdonalds. Global sales down more than what wall street is mated, down 1. 8 . Scarlet fu has more. That is right. We know mcdonalds has made a change at the top coming in with the new chief executive. When you break down the numbers, europe and the u. S. Performed better than anticipated. Comparable sales rose to an unexpected increase when analysts were looking for a drop. In u. S. , a gain of 4 10 of 1 versus the expected increase their mcdonalds cites a positive breakfast performance. For asia, the middle east, and f, a huge drop versus an expected drop of 8. 4 . We know that mcdonalds had some problems with not being able to sell french fries in japan because of the port strikes on the west coast. This is a bigger than expected decline in mcdonalds says this is largely a reflection of current is this challenges but it made structural changes and that will change the trajectory over the longterm. We shall see. We definitely shall. The stock down 7 10 of 1 . Thank you, scarlett. The crisis in the ukraine and what to do about it Takes Center Stage. President obama will get a map they in the efforts to forge a ceasefire with Vladimir Putin. Either cook has much more on the meeting. Peter, are they on the same age when it comes to ukraine . We will get a much better answer to that at about 11 40 eastern time when they hold a news, and here in washington. It is clear from the Munich Security Conference over the weekend that top security officials, feel very strongly it is time to start arming the ukrainians providing more weaponry to the ukrainian government. Angela merkel and the germans feel that would be a big mistake and it would only escalate the crisis further . Is there a risk . John kerry tried to dress that directly. Let me assure everybody, there is no division and there is most wet. I keep hearing people trying to create one. We are united and working closely together and we all agree this challenge will not and through military force. But the reality is there is a risk right now and there are certainly those of the u. S. Government who believe arming ukrainians is the right move. We put pressure on Vladimir Putin and maybe force to make concessions at the negotiating table. Is the president part of that conversation and has he made his own this vision yet . We will learn a lot more. We will. How skeptical is the u. S. For any chance for a deal with putin . View is while they are encouraging Angela Merkel in their efforts their meeting in moscow, certainly encouraging the efforts to try to reach a ceasefire and ratchet down it is not a lot of optimism that it will reach lead to the real deal an extended piece, if you will very russian backed separatist. Skepticism right now but encouraging of the germans and the rest of europeans. The reality is most people do not think they will produce excess on the ground. If not more weapons, what options are there . The other option means is economic sanctions there is one senses Angela Merkel will make it a if we do not have success, and we are prepared in europe to wrap up sanctions. You should join the president with u. S. Sanctions against russia, really targeting the sectors of the economy, sessions that have not been taken so far. Thank you so much, peter cook. Equity futures in the red after greece athletes Prime Minister credited to propose the nations ayla. Greek shares are down here in a showdown with the Nations International creditors. Joe has been crashing greek lefties arrive. The finance minister is addressing parliament as we speak. I am being told he just wrapped up. I want to read the headlines out of his remarks. He said number one, the end of the crisis will not come for a yes to austerity. The ecb lost control of Monetary Policy and greece will implement 70 of the bailout reforms. The structure must come to an end to people were expecting fighting words coming out from greece after the elections but will they really follow up with that . The fighting mark has been put in aggressive. The Prime Minister spoke and very adamant there would be no that down at all. Ratcheting up the rhetoric, more confrontation and it is one of the things where if you ask people like, well, somehow they will reach a deal, but no one will reach a pass because the two sides are so far art. Western europe is like absolutely, we will not give you a bridge loan to come up with a deal and sears are like, we will do what he said in the election and it does not look to their close to an agreement. No, theyre not. Watching the way greeks accept risen in all in almost on a daily basis and on these remarks. These guys clearly know what theyre doing to the Financial Market. At what point do they come together for a deal . I do not think the stock market is a major incentive them. The real issue with the debt market is not what is going on with the day to day jumping yields. The biggest market issue that would affect them is the right arm run on banks. If money keeps flowing out and at some point it looks like the ecb will completely cut off liquidity assistance to the banks, that would be the big Financial Market challenge they have to deal with it im guessing the stock situation right, theyre not paying attention to that. One of the markers we have to watch . There will be a meeting later this week where the president will meet with his eurozone counterparts and make the case. That will be the really big show, to see if you can present a case give greece some more time. If he cannot, there is a risk the next step is the ecb to really show off the funding for greek and completely, and you might have some cap potentials for greek positives cannot move the cap out. In other words, he cannot come up with something this week , the ball is in the ecbs court. Most likely, they would be the next active. Thats great to see you. Thank you so much Bloomberg Markets managing editor eric crisis in the ukraine Takes Center Stage in many republicans are up in arms with the Defense Strategy and we will hear from rob whitney and rob wittman. A 2016 bush president from matchup is looking more likely as the former owner of our to take fateful lead among will and voters. More ahead. Classless look at lets look the world news headlines. Lawmakers voted 6131 against a motion support for the Prime Minister has swindled. Rupert murdoch also chiming in. Ahead of the russia centralbank that she is unlikely to reverse last months interestrate cut as she expects inflation to flow. She aims to grow the russian economy. Neither monetary your budget can Table Economic growth. She also said she has a lot of respect for who is able to achieve a declining while guiding the u. S. Through a difficult time. And get ready for a petition from the former chairman of the u. S. Reserve, adam weight in that that greece would be unlikely that it is only a matter of time before greece is forced to leave the euro. That is the latest word from world news. Another update and 45 minutes kathy hour. A high price of the dollar may only hit the russian oligarchs very healthy fuel demand for luxury condos in miami and los angeles and here in new york is encouraged think our way waning, leaving many places unsold. In manhattan alone, 2386 newly built luxury condos will be listed for sale, the most on record according to data compiled by the sunshine marketing group. Is this the end of the luxury sales boom . Joining us now is dan, the founder and ceo of a Real Estate Investment firm with a focus on distress and contrary in investing their dan, is this the time to collect your in Luxury Real Estate . Obviously, i think we are all watching what happens with the russian virus. I think there have been other buyers who have stepped forward. We all read about what the chinese are doing. South americans especially in a place like miami, it has been south americans field. We start to see in miami, at least, more canadians buying evil outside miami and the u. S. Buying. The rest is among does somebody else replace some of the russian virus . On the very high of the market, are the russians who are buying that level, to what extent are they affected by the ruvell . We think the middle market would get hurt more than the end, from the russian buyer who might have bought a less expensive unit. We are not sure the upper end i will be as affected because they still have substantial wealth. Class of helps. Even a 30 or 40 presented im in the ruvell nobody does how much money they have outside of russia. Right. Of course there it china, nobody knows the wealth of their. It is there are fewer russians than fewer chinese i think there is an increase from the chinese did we start to see that you get a post from investors. I would guess the chinese fire is more of an effect. In my step in. It might step in. I do not get the trend there what is that about . Question it is a matter that they believe it is a safe haven. The value is protected, they make money were not, the value is protected. You just have the news here they are now interested in the hotel. Tony mayan dollars. It is a way to diversify. Last we have a history. We will find out, but so far, it has been a great report to the market in the capital is supplying value to the hotels. I know you run you built the hotel. Closely partnered and we are no longer a partner there. To green field. And the Standard Hotel around the country. You just those almost 1 billion you raised area how are you implying that . Probably a little more cautious than in the past. We tried to find situations where it is not just a macro that growing. Are you going into secondtier cities . . To a large extent. Will they go to the secondarys it is . Some people are. I was just in the nick. A beautiful property. Would you go there . That is the kind of places where they have made money there, but is not part of the core strategy. Geeking about something maybe outside you and i have talked before about your support of Hillary Clinton and however, youre getting more and more disgruntled from endemic to party . Am i getting that right . That is different than supporting hillary. I think she has a good sense of where the mainstream is. I think she bridges the elements of the Democratic Party and will still be responsive to the business community. How . How will she be able to keep the board constituency that is antiwealthy and a Side Business and at the same time the able to bridge that divide with the independents and the republicans . It is an interesting question in terms of, can you support both his vigilance is . I think you could manage the constituencies without vilifying one or the other. It may cause tradeoffs but i think the problem many businesspeople in the Democratic Party have, it is a different issue than politics. But there is a bloomberg poll out from New Hampshire that shows it looks like we will be headed for a bushclinton race. 60 see jeff roche as the first choice among republicans. 56 percent see Hillary Clinton. Are you worried, are you scared . No, i think he is the best candidate the republicans can put up and had a chance terms of an election with hillary. We will find out. The they all of jeb bush. A lot of them might hillary as well. I think they will be able to keep that relationship. Thank you for stopping by. Much more ahead, u. S. Across as looking at ubs. Less, elon musk he will try again tonight to launches rocket. Is before liftoff. There were problems with the air force radar divine designs third spacex will try again tonight. Will they make it . More details into the investigation. Investigators want to know if ubs misled clients in the marketing and selling of structured products in part of a probe to see the currency market has been manipulated. Alibaba is betting it can become a player in smartphones. The Company Investing 590 million in the chinese his operating system aimed at boosting mobile sales. As we head toward the opening bell, i want to get back to scarlet fu. Our monday future focus centers there it that is right. You told us earlier how the former fed chief said reeses exit from euro is just a matter of time because no one wants to risk lending money to the country anymore. We have seen how the euro has been on a steady path. 15 over the past two years. Has the long dollar short euro trade gotten crowded . Join now it answers, the founder of average joes. Look at what is going on with europe and the fundamentals. Economically speaking, the eurozone and if the want a weaker euro. Good morning. The worldwide currency, everybody is trying to push their currency to the bottom because the entire globe is having making the u. S. Dollar much stronger. But the euro especially as the Euro Currency and the euro zone was the last of the big quantitative easing party as mario draghi got his approval to go into bond buying a couple of weeks ago. They want to get the euro down lower. What we have seen here is the market has been really overcrowded. We have seen a . 23 move in a euro current the in the last year from the mid 130s down to 113. I fully believe it is going a lot lower before it is all said and done, but the trade. He was sinead. So what youre saying here is you do not necessarily want to pile onto the euro. You will back off on this and perhaps short the dollar, how long would you do that for . I think we are at a real nice level of the work the 112 to the 1 13 level. I have seen a higher trade but i would like to buy the euro here. I would trade up to 113, no problem. A real quick move is coming. Two 117 which in Euro Currency terms and that is 1280 ok which means i can make 37004000 dollars in a matter of minutes or days, because i think when it happens, it will be a short recovery rally that will quick fast, and sharp. Will we see this with other euro trades . I think the euro yen, theyre both raising each other down here and i am not a big follower of the euro yen but i am of our of the euro you a destiny euro u. S. Dollar. We know every worldwide currency want to get as cheap as they can because they want to be able to work more goods and that is becoming a problem in an of itself. Smu accountant, we know russia, the ukraine, germany and, will be meeting for peace talks in the ukraine. Will that factor at all on the market . sure it will we have seen again, genetic runs throughout. Traumatic problems throughout. Countries around the world. That in conjunction with the governments themselves trying to force currencies down by buying bonds and making their currencies worth less will be a problem. This could have a very big effect feared it could be the factor that creates the rally im looking for because i really want to be a seller at 170. The word of the week their mommy talk about trading futures, we often use the word and hear the word, and tell us what it means in the context of the euro dollar . It is not a big as big a word, but in the commodities space in general, when you see the nearterm price spiking the farther out term is going lower in price there it in other words the euro is trading at 1. 13 here. The front getting there is more fear being built in. It is typically a fear premium happening right in the time now, and not looking out to the future. It is more common and oil, but it is something very much to watch as it gives you an idea of what the markets are trading. Last i like the way you do that. Thank you so much. Back after this short break. Six months since Michael Browns death. Charging investors who ravaged this it the violent acts traveled to businesses, breaking windows and stealing merchandise. Travel and see how owners are picking up the pieces. This is how the world knows ferguson, missouri. Six months after the death of Michael Brown am a protesters have retreated and news crews have returned home. But instruction in this riot torn town remains. Week, eventually, the community will dwindle down to where it is not a distant or is desolate there it is important for businesses to remain in the community. Some owners are slowly reopening their stores, but not without personal sacrifice. My savings account took a big dip and i am renting this space so it is all on me. Ryan mitchell had to rely on his own cash and a loan to convince customers to return. After months of hard work his food cap is back to full capacity. We are changing lives, one pound at a time. My people expect me to be open. I do not close. Relocating her taxpreparation business to a trailer because her star has been condemned. But this is just a building. The building is gone and the spirit is still here. Do you know how much this will cost you . It cost about 20 grand to open initially. To do this again about 32,000. The Economic Impact of racially motivated riot weighs heavily on Community Spirit according to research that examined the aftermath of the riots, it can cause more longterm damage than a Natural Disaster. In the decade after those rights, los angeles lost 4 billion. The mayor canceled our interview and is is the cluster actually among but his spokesman and as a statement they city staff has been working close it with Business Owners and investing in the community. Some in fergusons they the support is not coming fast enough. The response is very slow. It has heard this this. I have heard absolutely nothing from anyone. They need to come out and make themselves known. Come to me and say, hey, what can we do to help bring this back. Show the holiday joins us now with more on how ferguson is coping six months later. Are the Business Owners worried about more protests . I asked them about that and i got mixed answers. Some are worried when the Justice Department clears the officer of civil rights charges, there would be more protest. They are worried there is more window smashing and more looting third but you still see boards on windows me still see stores close. They are still worried. How are they protecting themselves . A lot of them are slow to open and a lot of them are trying to raise money. The county is offering 0 interest loans. A lot of them are already in debt and have already taken out loans to open the business. Theyre waiting to get financial footing secure. I spoke to a few experts who us at ferguson and other racial riot cases and they said, you know, the show is not just about putting money in a community. That will not do it and that is not enough. You need to heal the community. The motivation has to be internal. If the race is not filled eighth, businesses will not invest. And vice versa. People will not feel safe and they will not come. Is it true there are reports out that say race riots can be higher harder on an economy than a Natural Disaster . Yes. Longterm. Over the course of time, racial riot can have more of a negative effect on communities and that is because when communities do not heal businesses are not bounce back. The Community Just kind of fades away and that is what they are hoping to avoid in ferguson. If you go there, it is still dramatic. They say ferguson will be back, back on track. What specifically do they need to do to get that contract . Some say the government needs to make itself known, make sure people feel secure being in ferguson. Another big thing that needs to happen voting. The community was very disengaged before the riot elections are coming up this spring, local elections, small. If the Community Votes and they have a greater say in the government, that could help put ferguson on top of feeling more secure, more confident in their government. Make them feel their future is in fact right to request that they are included. Shelby, thank you very much shelby who visited ferguson. Coming up, mcdonalds. The new ceo has work cut out for him. Sales fell more than expected. We will have much more on that. Plus encase you missed it, we will get the scoop on the big winners and the value of grammys these days. The governor of the bank of england has called for a big push to implement Global Banking reform. Thinking ahead of a meeting with central bankers in turkey, the government may be tiring of implementing regulations. A powerful mining tycoon. The former chairman was sentenced to death in may. His brother and three others relate to the group and were also executed. And the operative thing gdp growth of 7. 4 in march, a 5 increase in the december time. Questioning the growth surged after the way gdp is calculated in india is changed. That is the latest world news for the hour. For the opening bell, a check on big movers. Scarlett, what is the action . A deadly saw friday. The big story on friday and it continues today, treasuries. They are ripping some of their loss am a which firmly put the june timetable with the, table. Will resume as well, up 18 . You mentioned global news and we have to keep an eye on specifically greece. Down for a Third Straight day lower than once again thanks violent percent. Great aunts are following, pushing yields higher, but 10 and toured 11 . The Prime Minister not backing down is his in his confrontation with creditors. When you look at what is happening in the u. S. , the greek fund that tracks greek stocks, also down 4 in the free market theory couple of individual u. S. Names i want to tell you about, qualcomm is moving higher in premarket, in contrast with most of its big movers. There are reports the chipmaker is fairly most resolving a Chinese Government invest gauge and into anticompetitive racing. A 1 billion deal that would put us behind qualcomm Area Solutions getting a bit of a bump as people say it is a boring a sale. Fourthquarter profit beat analyst estimates. Thank you so much from the movers. Coming up, the british invasion the singer from london took the crowd for musics a guest night. It is that guy. Will grammys translate to record sales . We will discuss with with a media veteran max, adam klein. Veteran up next, adam klein. We will be back. We have a few minutes before he gets here. Burn the door. Got it. A 22yearold british newcomer said the bulk of the awards and last night his grammys. Sam smith 14 gold song of the year. To the surprise of many in the crowd, roger won album of the year beating out the and tonight, how much the grammys really worth to an artist in a struggling a. Joining me now is former is the yellow is the music, emus it. Now the founder and ceo of the company focused on reinventing values through original and proprietary content. Live events like the music caps on that you hold here in its 35th year. Nothing beats live. You have been to the grammys before that you have gone for several years. How much do you think it has changed and what was the Biggest Surprise for you last night . What changed, it is a little quicker and slicker and more encompassing. One thing they do best is the mix of artists. They put them together. Madonna is pushing 50 now. Who knows. It was a stunning show. Putting these guys together i think it is spectacular. Only 22 years old, it is incredible how these artists are. Youre saying his age alone wouldve immediate indication this guy could leverage social media, could really leverage the millennial platform to make hit and he did just that. Even i think that is a big part of the story. There was thence doing the best he could to say protect the album. That is true but the action is alive, it is social media it is instagram and when at an event. Using your facebook to share and learn from. Him if you are not active in the community, youre not talking to the millennials. You are just not talking to them. The activity, the purchases. Part of her the economics come from, it is not as rich as this. We read every day. Another piece this morning. A popular guy, 50 houston downloads on spotify. It will not happen. It is the data, it is the behavior of the audiences thomas it is who influences who, the role of social media. That is where those dollars try to get in. Sam already quite successful and wealthy, what is it worth . It is hard to put exactly but it is big number. Huge exposure everyone will want to their lives kosher, and he has got a very well structured social media apparatus and he knows how to leverage that. It is worth a lot. There is the oscar curse. Your career goes down when you win the oscar. Grammys, your career get even better aaron i thought those numbers were very interesting. Digital downloads in the First Six Months of 2000 14 down 14 , digital downloads. I still download my music. Revenue from streaming like spotify. They get wider but a little perspective, you are starting from its own base when you look at the spotify and streaming dollars geared. On the other hand, that is their impressive but one must also remember the overwhelming majority of the spotify activities outside of the u. S. 25 of activities in the u. S. Scandinavian company to start with. Those vitamins that is from there to other parts of your. The culture of paying for music and paying for streaming has become a little more adapted adopted outside the u. S. Whats in the u. S. , does that mean we are as goals we still 22 oldschool message methods . Yes we have a more complex market. You have pandora with 81 million active users and you can do it for free. The spotify campaign in the u. S. Has all been about three. We have still been focused on three and out how to make the migration to aid or once you have had something for free online got to give you extra value if you will pay for. Supply has gotten smaller. A smaller pipe. Lets erect. There is still a lot of money in music. It is huge. Nothing will replace live here i know you have your live music event. 35 years running him a there is the evidence right there. We have have 1400 emerging artist bands in october and five days. That is just awesome. Adam, thank you so much. The founder and ceo. Staying in media, the big number todays it is 6 million, how much the news one movie took in this weekend. It was a better than estimated opening. It knocked american sniper out of the top place after three weeks. Sponge is produced by paramount based on the popular kids show on nickelodeon. Much more ahead on in the loop. Welcome back there 30 minutes away from the opening bell, here is a look at last or is this morning. Angela merkel in washington to talk to president obama on the ukraine. Republican officials have been pushing the president to send wet send weapons to ukrainian forces. Angela merkel rejected the idea. In greece, warning those who that on failure are playing with fire. Laying out his partys platform he reaffirmed the governments objection of the bailout of austerity terms. They meet wednesday to discuss how much money greece needs. Opec has set its forecast for oil production. The price collapse means u. S. Production will grow only half as asked as it did last year. More oil taking out of service and Oil Companies have cut back their plans to drill. At the grammys last night, a bringer british singer sam smith, one four grammys including song of the year and record of the year and top vocal album. He won album of the year and best rock album. Lets count you down to the open with top tech headlines hitting our radar before the bell. Joe is joining me, as well as alix steel this morning. They on the grammy with number 10, sam smith, conquering the grammys last night. Controversy is here about that wonderful song, stay with me. You are looking at me like i know the song. I saw first that people said it was the same as tom petty, i did not hear it and then i watched the video that line the two songs up and changed the octave a little bit. Whatever. Come on. We have all been there. If i hear under pressure and i am like, vanilla ice. Every song is like it will but like a ripoff. Nvidia made a number of years ago where they set all songs are based on a few key chords and using go from one to the other to the other and they are all based on the same words. Now, giving credit or at least something on it . Is a testament to bad taste in music we listen is have. We all like the same thing. Number nine, Nissan Motors rated its earnings forecast after reporting its 21 jump amplified by a weaker yen and strong overseas sales. The automaker expects a profit through the fiscal year through march. Question is interesting because it highlights the fact the u. S. Consumer is doing a much better than any other number of the world. They use used to rely on russia and china and now russia is in a recession. It is really about the u. S. , which is surprising. But absolutely true. Car sales in the u. S. Have been impressive. Everyone is benefiting. Especially precrisis on everyones at the u. S. Is finished. Although demand is elsewhere and the story of the u. S. Rising while everyone else stagnates hes getting sharper and sharper. But russian is, will the rest of the world drag us down with it . That is what i am hearing. But here is my little contribution yard im in the market for a car. President s day weekend is apparently one of the best days to buy a car. Im actually going smaller. I want to have a nice car, a car. The cars, we go to number eight in authorities raided a millionaire mansion seizing seven vigils including his lamborghini and other assets. They peaked at 35 billion in 2012 it wasnt that the lamborghini in willful wall street . No . Ok, matt is telling me know there it id. A. Look like it. He has kind of had a usual 12 wall st fall. It is asked lewdly extraordinary. I think in 2000 he was talking about, i really aspire to be the richest person in the world. That is kind of a weird ambition to focus on the number one. The collapse has just been spectacular. If a guilty verdict came they make him the first person in result to serve jail time for some kind of crime in the capital markets, which is fascinating. A negative billionaire is quite an interesting way to describe him. Ok. Speaking of billionaires, we turn to number seven, Warren Buffett raising eyebrows as analysts claim Berkshire Hathaway reveal less detail than companies of similar size. Buffett rejected the criticism came criticism, saying richer longterm investment in shares. So who cares . That is the deal . He does not care. That is his mo, correct . A lot of investors in berkshire trust a lot of value is based on trust and confidence in him. Nothing new. Look at the orderly reports there there are a couple of sentences. So i do not know, it seems like what we have always known. Thats what we have always known and always done. Very few analyst cover Berkshire Hathaway anyway. A lot of companies are overwhelmed with detail and they grow tons of numbers out there and you cannot find he is on the far end and there are not tons of the. But he just to the point. Wesley doesnt emit is a very number six, mcdonalds, new figures this morning say that sales are down this morning. Expecting a drop of 1. 2 , now the new incoming eeo, taking over in about a month from don thompson. He has his work cut out for him. Nissan, verizon fall of bricks. Sales down almost 13 . Last january, up 5 . There is the issue and there is the point. If that is a big part of it. Then there is the fact that mcdonalds is so far out of step with the direction of how they wanted to meet. The u. S. Is a 4 . Ok, whatever, it was flat. Like you cannot get good food there. That is the point. He is by a huge multinational reiteration with the amount of supply they havent country, and they cannot import their food. It was not so good. I speaking of ceos is, we will discuss the challenges the new ceo has after taking science earlier this month. This company has is essentially thrown out of his time . We will be back. We continue our countdown to the opening bell. We are halfway through and it is time for the deep. Number five is s new ceo who took the reins over the retail giant beginning this month, replacing glen murphy as a longtime executive he has been instrumental in key aspects of cap growth, including acquisitions, digital innovations, including wifi. Many analysts cite that the brand is still in need of a russian perspective to reengage and numerous as it competes with names like h m, unit glow, and others. With me now is the managing director and retail specialist i cap markets, and i read through the notes. Adrian, you seem to be a tech fan. Why do you have so much confidence in him . I am a fan since 2005 when he started with the company he has been in almost every fact it facet of the business that today so sick of it he was metal and watching the International Levels of energy. The outlet is he helped a lot of those. He was actually the head in 2011 in 2012 one had the strength of positive things. We are that he has done a lot for the company. Then why has that not shown more in overalls and says . Proceeds of the home on february 1. His most recent job was obvious he is president of growth innovation, and digital. Ecommerce is 2. 3 billion and roughly about 11. 12 of the total business. He is essentially double that over the time he was there a fabulous job there. Is saying he has been successful outside of the rest of the company. Less well, the interesting and is we always think of the brand get division. That is only about 40 of the business and that has been really struggling. Old maid he been doing phenomenally well. And it is larger in sales, just a little bit. And then you have a mutual, it has the potential to turn but is only about six percent of the business. Total business is only 20 of the national there that is where growth will come in the next 510 years. As we have noted, some personnel changes in the over february 1, but before that, he had already been making management switches. Jeff put in place as the head of china. Record day, he fired and put and dom as head of Banana Republic. So you say you applaud all of those moves . So, actually was the head of china and really watched the ecommerce strategy for china. That fit very much with the really tech savvy. He brought him over. Rebecca they, she was previously the designer and head merchant for the higher end version, very european and a little bit different from the american case that is the gap. And then Banana Republic i do not know andy owen but to the extent she has had success in the outlet, i think he went to form his own team. Right. The head of the outlet and then he now put them in charge of the Banana Republic dared what do you think are the next few steps they should take . Given you any hints as to what the next step is for cap . He will do an investor day on march 17 and that is when we will hear his treasury different from his predecessor. To the extent i think it is very much focused on the growth of business ecommerce, china international, international outlet. Those are small today, growing footprints, and are created to the overall markets. Why did the gap take their eye off of digital . They are still nowhere when it comes to the ecommerce space. Yes. A lot of retailers, they just have gone to this, unless there were they were catalogued earlier on. Urban outfitters, and taylor. Most retailers are sub 15 . Forecasters say ecommerce can grow to 25 or 30 over time. I think when we when glenn was there over his seven years, he had to stabilize the margins. He took it from high singles to load scenes and drove the earnings that i think that was the primary focus over the past seven years. The next league growing these creative businesses. All right, adrian. Thank you very much, retail analyst at jenny capital markets. Staying in retail, the new ceo of market arrow has her hands full. We will dig into that. Alibaba, yes, they are jumping on the wagon, adding on smartphones. Can they succeed were faced amazon, and so many others have failed . Time for a quick look at global markets. The encz declines at a fourweek low before the dollar starts showing. The number you need it needed to buy the dollar falling. China, the worlds secondlargest economy demand for the currency. Finance ministers are meeting today. An alltime low. Here we see the dollar strengthening. Stocks here are also falling after president s turkeys resident renewed on the interest policy. That is how foreign markets are trading. The most important stories you need to know before the marking trade. Joe wiesenthal is joining me this morning. Number four china. Alibaba betting that yes, it can become a player in smartphones. Others cannot do it but they can. Investing 5. 9 million and the chinese smartphone maker, hoping it will be the key to unlocking chinas half a billion smartphone users. Apparently, the company will shift 20 million handsets is here, which sounds like it is an amount for a Small Company economy. It is a huge way to climb yourself up to the top. Alibaba is basically and everything there a lot of Internet Companies are in everything, theyre in banking and payment and search there and of course, why not have the handset as well. You just dont want people to sell your products to the end of the day. Exactly. Theyre using operating system called units familiar to those in china and not familiar at all to us. It did not work here, and here is a different smartphone market. It would work in china. Say in china, number three, investors are reacting after china hit a record trade surplus in january. Falling Commodity Prices and weak domestic demand declining nearly 20 from a year ago. Exports fell just over 3 . Also, this is stark to me because it is exactly what the country did not want to do. Not relying on exports to make their money. A clear sign they could not in the short term do it. This is a continuation of the story we talked about earlier with nissan and car sales very the story in china has changed so much in the last decade. Basically limitless growth for commodities, just looking very normal. What is abnormal is why it has taken so long for chinese consumers to really rear their prominence on the global stage. Yes i am a they buy a lot of Louis Vuitton bags, but that that does not seem to be propping up the economy as we might have thought even 10 years ago. Yes, obviously it is not nothing, but it has not been what people have the vested in the past. The real story is that china just has not changed the economy much, rebalance in a way they are still really dominated by real estate commodities and so forth. Angela merkel in washington talking to president obama give ukraine. Republicans and senior officials have been pushing the president and merkel is scrambling to reach an agreement as conflict escalates in the ukraine. The problems and headaches that just will not go away. I was reading on josh rogan, who had a column and he was basically saying the split between the u. S. And germany was exactly what putin actually wants there he wants that to happen. The more russia gets away with what they want to do. It is just hard to be optimistic about things and proving there. Every moment it looks like there is a breakthrough, something have not gone that way. I agree. So far, despite economic sanctions, they are crippling the russian economy, right . Oil prices it has not shaken the support for the president. And 85 approval rating, even though it is the highest as 2010. Near the opening bell, a check that were futures have settled. Equity futures are lower and greece is a big story for the market. We will be back. Welcome back. Lets get back to bringing you the opening bell. Lumber markets, joining me this morning for the open. Ok, the number one story, you can imagine. Reaffirming his rejection of the companys international bailout program, sending European Market lower. One thing i want to read from mohammed, he writes, if it ended its very public repeated bashing of germany. This is not the time for great reason to attack. It is a reasonable argument , but regardless, it is kind of amusing to see this antagonism from a country that clearly have a lot of influence. Just like do not seem to be showing any indications just trying to be nice. Pick your battles a little bit there may be a good argument, but maybe not right now. They would not have gotten into office if they had done that. They have a massive lyrical good well the goodwill. Protest in favor of the government, which basically never happens anywhere. So it is like, this is what they are in power to do. Still doing it. And how long can they play that card . That is the question. I want to bring in adam parker the chief u. S. Strategist at morgan family. You think expectations for 2015 are just too low . I do. Good morning. I think its the First Time Ever where you are not in recession. Betty what he say that . Adam you have to cut your numbers. The correlation is. 8. Youre not sure what the flag benefit will be. We have a lot of arrogant people on the sales side. The incentive is to see. We know there are benefits that betty what about the stronger dollar . Adam it impacts stable for most. You want to position around relative achievability. Alix are you bottom fishing . Betty why would that blow your mind . Look at how far Energy Stocks have come down. Alix there is a lot of risk in the oil market. It is like catching a falling knife. Adam i think it is a contrarian call. We are not propagating all the way through the portfolio. The reason for recommending it is because stocks are cyclical. Many are bearish below 50. I know i have to buy them early. The incremental reduction would be benign. Stocks are benign. I think you have to gamble. That is tricky. My guess is continued reductions, make people you are short oil and they kiss the stock in price going higher. Betty does anyone think we are heading back to 100 oil . Adam i think some people do. We had below 40 for a little bit and we get higher. Some of these are still pricing. This has been 90 of supply issue, not a demand one. Morgan stanley is a higher gdp growth. If it is mostly supply, you can be short oil two or three years. Betty you are saying you have seen the declines in oil, you have seen Energy Stocks outperform . Adam all seven times, it has underperformed of market by this much. Part of this call is that oil is going to have to rebound, otherwise you end up with year and not the real thing. Joe do you see signs of life and the go in the Global Economy . Adam you have slightly higher global gdp in 2015 and 14. You see that in europe and the u. S. It is not a huge increase, but it is not decelerating. If that is not the case, why would you believe it is not demand on the oil front . There were 14 10 weeks ago. Alix what country might lead the growth . Adam i focus on the u. S. There are lots of arguments about deflation and where it is being exported. I think europe, there is a general sense that the economy is improving. That is a big area for u. S. Stocks. It is an opportunity as we had through the middle of the year. Betty we have about 7 operating Earnings Growth and more than 82 net by that. If you are sure the s p, you are saying the numbers are coming down and i do not think that is the right thing at this point. Betty stay with me. Adam parker. Thank you to joe and to alix steel. Staples and Office Depot Deal underway. It has been a big year for them and a for m a. Stay in the loop. Betty i want to head back to scarlet fu. You have a look at what is moving. Scarlet we are going to start off with alcoa. Falling from a twomonth high by almost 3 . The analyst saying north american premiums may follow suit. This is deteriorating aluminum fundamentals. American airlines placing its 10th decline after it cut its firstquarter profit forecast. The reason is because of rising jet fuel costs. It will result in a pretax margin of 12 to 14 . Delta and southwest falling in sympathy. Diamond offshore, cash conservation mode will not pay its Quarterly Dividend since he First Time Since 2007. Fourthquarter profit topped analyst estimates. Betty thank you. She is markets correspondent. M and a strong start. Staples bought office depot. As bob told us, the deals are just getting started. Bob we will see a lot of corporations trying to get leaner and more focused. We are looking at health care. I think you will see this continue to roll. I think it is going to be another exciting year. Betty i want to bring back adam parker. He is the chief u. S. Strategist at morgan stanley. Would you agree with that take . Adam the fraction of companies receiving officer receiving offers is over the longterm average. You will see Companies Deploy capital more comfortably. I think that will happen. Betty what is the average . Adam about 3. 8 receive a tender offer. I think you will see more. The total number of transactions is not that high. You can show the premiums and the surrounding securities on a dream they can also receive. We have not seen that yet. An important point would be, the Big Companies doing stock buybacks have underperformed and it might be the market telling them to buy and you can start to the market is telling them the benefits of the buyback is not as great as the negative view of the future growth. Betty why do you think we have not seen you are saying we have seen these yields, but they are not as many as you might have thought would have come out of the crisis. Adam corporates are being conservative. If you look at other metrics Capital Spending hiring building inventory, corporates are being conservative, making sure theyre not putting big costs in place that turned out to be ill timed. The u. S. Economy looks ok. Betty is a bad time with is a bad timing, with Interest Rates about to rise . Stocks might not go up as much . Adam small cap stocks have margins below the longterm average. I would rather buy a business now when its margin has potential expansion. If rates rise, we should borrow now as opposed to later. I think the timing is good. Betty we have seen a lot in health care. Do you expect that to continue . Adam there are a lot of roll ups. You are buying of the dream of future growth. I think that will remain elevated versus other sectors. Maybe that could change down the line. I think you will see more in industrials. It is right with opportunity. Betty biggest challenge . Adam it is hard to integrate companies. Stocks are going up because deals are. Every Research Note said the deal would be by year three. That is the difference in the opportunity you can make these things work now. That is why you see more and more deals. Betty will it have impact on stock markets . Adam it should. Betty great to see you. Thank you for stopping by. Still ahead, one fund measure one fund manager has been betting. More next. Betty Market Makers has been talking to the best performing Hedge Fund Managers in the world. One of those funds, a more than 11 thanks to betting on the recovering of the housing market. With me is stephanie ruhle. Making money on housing. Stephanie he was the number one manager on the planet. He invest in distressed housing opportunities. There are a lot fewer distressed opportunities because of the recovery. He had a big 2014, returning 11 . We have to find out how he is going to repeat himself when you have housing markets like miami, hotter than it was in 2006. In places like new york city with places going up everywhere. How does a guy like this make money . What doesnt mean . We know hedge funds got killed on the trade last year. He has to explain how he is going to do it again. Betty we had dan on. I wonder if real estate is a common or big theme along these Hedge Fund Managers. Stephanie if you wanted do direct lending, you have to have private equity style money. When you have the kind of performance he does, you can have those kind of investors. Betty there are almost 2400 luxury condos for sale here. That is a wreck. That is a record. Stephanie maybe i can try one is a free sample and see how it goes. Betty thank you. From homes to hangers, what is next for the biggest clothing manufacturer in america, American Apparel. Betty the ceo of american a merrill American Apparel wants the brand to be as as possible. She has given her first big interview to matt townsend. He went out to visit with paula. She was straightforward. She did not shy away from talking about the troubles the company has had. She did not try to sugarcoat it. She said she is here. She has ideas already for the brand. Betty what are her big ideas . Matt the edginess will stay, but not as sexual and suggestive. She wants to take on the hot button social issues. Maybe not be provocative and how they talk about things that are important. Betty that seem to be the cornerstone of their brand. Not as creepy. What is her relationship with doug . Matt she was recruited by him. There was a plan in place for them to stay at the company. He was going to be her mentor. She talks to him on a regular basis. She did not get into the personal stuff. He is a confidant of hers. Betty issue where he he is going to continue to create trouble and derail the headlines . Matt she thinks because she got his support that he will not undermine her. He will probably try to make noise, but he has her support. It is beneficial. Betty it what about the demographic . Matt there are some holes and offerings they think they can go after a slightly older demographic. The brand is very young. They have that nailed. Betty women in their 30s are familiar with American Apparel. Matt yes, they had them early on and lost them. That does it for today on in the loop. Scott garrett of new jersey has been vocal on president obamas budget, calling it a lousy groundhog day repeat. Live, from bloomberg headquarters in new york, this is Market Makers, with Erik Schatzker and stephanie ruhle. Stephanie greeces new Prime Minister rocks the market. Oil at 20 bucks a barrel. A second price collapse may be weeks away. Picking up the pieces in ferguson