Kind of quiet on the earnings front. It will get busier as the week goes on. Davos is one week away. I will be in zurich. Lets do a data check. Were looking at stocks and bonds and commodities. The yield is 2. 85 . Crude goes nowhere. Where did the vix close on friday . Nicely under 13. That is interesting. It speaks volumes about a sluggish jobs report. We will talk about that today. 6. 04. Inese yuan, that is a shop for anybody on the asia watch. Were blowing through to east stronger yuan. A good morning to all of you watching in canada as well. It is a twisted weekend. She sort of dressed like tina fey this morning. Scarlet fu with the front page. Were working on that. Page story, the Iran Nuclear Deal will take effect starting next monday. They will stop producing weapons Grade Nuclear fuel. Theeturn, remember that u. S. Will temporarily suspend the economic sanctions. Relief will be worth about 7 billion. It is a step. What size step would you give it . It is a first up. It is the initial step. This could be part of a six to 12 month timetable. The president is already saying that he will veto any new sanctions. It is a crucial step. Were not actually putting a number on it. The other front page that were looking at is the north American Auto show. It opens in the motor city. They will unveil new aluminum versions of their trucks. Christina is amazed by this. I do not understand what america is doing. What are they telling towing . I can see you in a pickup truck. I have no worries about driving a truck. What is the flatbed for . Children. You would have to get the wooden blocks on the pedals. They make those. I have plenty of things that would do the trick or it we will talk more about the Detroit Auto Show. There is a story about how automakers are making more on this is a celebration auto show. 50 Million Units in the United States. Our third story is a big win for the big tanks. Regulators have watered down new rules related to banks and debt. Their winning concessions and leverage ratios. They also eased requirements under derivatives and repurchasing agreements. This comes as Global Economy gets better as well. The lobbyists have been working overtime. The rules are hard to understand. It will employ a lot of technocrats of the bank. Lawyers. Compliance will be huge. Bozo from page stories. Lets talk about this right now. It does involve everyone in america. Rington Holding Companies his volume is a required read. Chris whalen, that was all the buzz five years ago. Boston red sox would be macro prudential. Theres furnishes industry lobbying. The industry rose up and told the crew that we will not do this. If you really impose the capital rules that they proposed over the last couple of years, the europeans would never get there. The outcome would return to 2005. The shadow banking that was there in the last decade. We have had a huge reaction to the misbehavior before 2008. How do we finetune this regime so that we can see growth in the economy . If you do not have credit growth, which we do not, credit is shanking. The fed is trying to slow it down. We are restructuring. The leverage is very low. To make, those are the issues that i look at. That is the growth driver. Why is it so hard to come up with a common definition for this . We do not have common accounting. You cannot have a common banking regulatory. The definition of a default, that is the foreign concept. We need jargon. What is basel besides a city in switzerland . It is an attempt to have common capital rules the goes back to the 1980s. Have the fdic chairman they have said the large sophisticated banks will find a way to get around these. They always do. What you are talking about is an incremental push back or it overall, the regime is very strict and restrictive on credit. We basically shut down a lot of the Asset Securitization market. That has not come back at. The changes made by fdic you argue that this will make banks more like utilities. Why is that a bad thing . The thing i worry about with the volcker rule is that we told the banks they cannot trade for their own account. We sequester that capital in the bank. If you want to go down that road, lets divide the bank. One only we are. We are not charging them. We are paying them. You are charging them more than you used to. It is punitive for a bank to make a mortgage and hold a portfolio. I want to get in front of a number of pundits. Can you predict this year or next year the Goldman Sachs will be different . Their strength is that they change quickly. The other brokerdealers have to will they stay a bank . Is ultimately a legal and financial decision. Dodd frank says they will stay a bank. The question is will they have time . Willatering down this have Material Impact on earnings . It already is. Thanks can take a dollar of capital and put it behind a Single Family home loan. Or you can buy four dollars what will they do . They will buy those securities. That capital will support the private loans. That is how works. It is punitive for the banks. This is an important conversation. We want to make you smarter about the banks. Jpmorgan and wells fargo. Was the location of all of the major banks in europe . Lets get the company news. We have a story on ubs. It puts an end to speculation they are not considering putting off their Investment Banking business. Volkswagen passes General Motors in china. They are selling 3. 2 million vehicles last year. They edged a gm. This marks the first time in nine years doubleclick an out sold gm in china. It put them closer to being the worlds biggest carmaker by 2018. In hewlettpackard plans to renominate its entire board of directors. This is an effort to build stability after years of turnover. The interim chairman could the renominated as part of this plan. That is todays company news. Are they an emerging are they in the acquisition game that has been what were reading and hoping for. To be honest, it is a huge company. Will you deal . You have to sell. 2014 . T is the report in it is a private company. It is hard to tell what is going on. We know that they wanted to take an enormous amount of cost out of the company. You could probably bet that theyre doing that right now. You talk about cost. Chris whalen, it does not do better than that. Also, automakers show off new vehicles that generate buzz. But this could mean for cars this year. That is coming up. If you missed any of our interviews, you cannot now watch them on apple tv. This is bloomberg surveillance. Good morning. A busy monday morning. Alan mulally will join us in the 9 00 hour. He is staying at ford. He announced that last week. Matt miller is in detroit at the north American Auto show. A lot to talk about. It has always been an important part of our manufacturing economy. Good morning. Scarlet fu and Cristina Alesci are with me. It is not the Detroit Auto Show. I meant to ask you. You look tired today . Did you watch all of the Golden Globes . Tina, heartthrob. She looked awesome. Jennifer lawrences dress was a risk. People to twitter of themselves wearing the same dress. I was going to wear that this morning. The north American International auto show is known as the Detroit Auto Show. It kicks off today. Expect dramatic changes that could set the stage for the Auto Industry. It is not just the u. S. Automakers. It is not just gm and chrysler. The asian brands will have major unveiling. Matt miller will report live in the next hour from the Detroit Auto Show. We will have more details on those up before cast forecasts. Folks like and has outsold General Motors in china for the first time. 20 million unit china. Versus 60 million here. ,hey pulled 16 thanks to audi the topselling luxury brand in china. The automakers really have to get china right. Not just a cousin is a huge market, but because regulations in the country are actually limiting the amount of cars that can be sold. There is concern over air pollution. This is a major market that the Car Manufacturers have to get right. It is not in him limited growth story. The government can come in and put restrictions. What is interesting is that audi and bolts like and are pushing worldwide. Talk to a mercedes dealer here. Chris whalen with carrington investments does that mean we need International Banks . Our jamie dimon and Michael Corbett right . Do we need International Finance for the Auto Industry . Of course. What kind of returns will you get and what kind of volatility will you have in your model . Big banks cannot ignore their performance. They have destroyed themselves. It is a regulatory regime. There is syncopation between the tanks and their behavior. Weto bring it back to autos, love to show fancy cars. Our viewers like to buy them. It is about a pickup. We want to get her a 250. Is that right . I dont know what that is. The ford 150 is lighter than the old model. Back to the original way. It starts at 25,000. 25,000 . It is an affordable vehicle. It is a great vehicle. It will do anything you needed to do. For those of you worldwide, does that pickup truck that dashboard is not like a pickup truck. It looks like a lincoln car. It does. That is part of innovation. That model that Sticker Price is just the beginning. If you go up to 50,000, when you add on the extras General Motors is jumping in here too. Tough market considering that toyota has owned the market for so long. It seems like gm is grasping. Isnt it interesting that you are saying that . Toyota is now mature enough . Citigroup is out with increased exposure. Even they are doing better with european autos. There is a real statement about what america used to be. To their credit, i was there doing the blue years. It was really gloomy. We are on the heels of 50 Million Units. They have very small hybrid cards. Theyre getting a lot of attention. Matt miller will be there in the next hour, reporting live. He will speak with bill ford in the next hour from the Detroit Auto Show. He is the executive chairman of ford. That is coming up on bloomberg surveillance in the next hour. Also, our twitter question of the day. What was your favorite Golden Globes moment and why . Tweet us. Did you watch . I was sleeping. Youre kidding. We will fill you in. Tweet us. Good monday morning. I am tom keene. Garlic doing Cristina Alesci are with me. Scarlet fu has the top headlines. We start in thailand. Protesters are trying to shut down bangkok. They have close to major roads and intersections. They vowed to keep the blockade in place until they delay an election. Protesters want a special counsel before any elections are held. Universals lone survivor is taking the number one spot at the box office. It is a film about a navy seal operation in afghanistan. It took in 38 million in ticket sales. And Alex Rodriguez says he is confident that his 150 two game suspension will be overturned. In an email statement, he said that the deck had been stacked against him since day one. The suspension was reduced in a ruling over the weekend. I am not a test. Scarlet fu is the yankees fan. Can he come back and play . I do not know about the yankees, but he can play in general. He does not lose all of his money. N if its a disability he loses his base salary for 2014. He also misses onus is. Bonuses. I do not care what people berman thinks about this. What do you think . Did he get his day in court . I think you did. It makes me sad. He is a great player. You are set for him . Are you kidding . It is a sad situation. Why . Athletes make decisions. This is not the first megacrisis that we have had with a household name. Think about the scandal around chris whalen. If you look at arbitration, you want to know, is arbitration appropriate here . Should he have a day in court . You can always appeal in arbitration matter or it which is what he is doing. It is useful tool. There are aspects of it that i do not like. We need more disclosure. Otherwise, it is good for both parties. You get a decision quicker. Scarlet fu has one for us. This is china and north korea. The china policy in north korea has been a failed one so far. The fall fromthat power is the latest in a long succession of failures in the country. North korea as a buffer state, used to inflate it insulated from american pressure. But the reverse is true. This is a big theme in 2014. How the balance of power changes. We have already seen that kim jong un is willing to take extreme steps. How does that play out . The murders that we have just had. He got rid of family members. They were trying to launch a coup. There are a lot of things going on. We should do crystal ball gazing. Shocks could be around northern asia. China and japan as well. There is more confidence in china, then there was 60 days ago. You see that. We will see how this plays out. What we are also keeping an eye on this week is Bank Earnings. Chris whalens wheelhouse. Jpmorgan will report tomorrow. Coming up. Monday jobs report. Lets get to the data check. Stocks, bonds, currencies, and commodities. The 10 year yield comes in a little bit higher. 91. 92 on crude. It is a sluggish data check. It was stunning. Know once all the jobs report coming. The lowest estimate was not close to what we got. Earnings season will get underway. The big banks will have a frenzied four days. Jpmorgan will kick things off tomorrow. The theme is mortgage weakness. Big legal expenses. You want to look past the Fourth Quarter to forget some the year ahead. She is known for highly detailed reports. Ratio upon ratio. Stretches to the horizon. She is optimistic about american banking. It is banking in need of higher returns. Good to have you here. When you look at banking, what i want to know is how is the job coverage going to be . They need higher returns on equity. How many jobs will out the door in the next two to five years . We think we will see a little contraction, but not as much as we have been seeing. When you do it the roe. It has more to do with the employment of capital. Explain why the return on equity is important. It is important to shareholders. Goes up, your evaluations go up. Valuations go out. There has been pressure for Goldman Sachs to set a target on equity. Why is that important . I think what you are hearing is that they are interested in seeing what they think they can generate. The precrisis era had them putting a number that was about 20 . Investors want to see them have a level of conviction to, with a target. Wouldnt that require them to take on more risk . Not necessarily. The answer is a function of regulation. We do not have all of the rules yet. We had a step or word over the weekend. We do not have all of the rules out there yet. I want to ask about quality of earnings. These do not represent operational strength. Is the quality earnings . Wins. Steeper euro curve is costcutting still the big driver . This quarter, we think the big driver will be how provisions go. Reserve really slows down. You will get a lot of noise around that. Onget a little better nym the outlook. There were a lot of jargon points there. There were a lot of reserve givebacks. Will they really make money . Not this time around. They will. Reserve release is a function of better housing prices. Do you agree . What they are saying is that the probability of default and value of collateral are improving. We will rip up the script. . Ou mentioned the basel board will they stare down International Regulation and play by american rulebooks . Accord is ahe basel victory for the economy. For borrowers. For growth in the economy. And less so for the banks . Banks are a function of the economy. I look at this, but the, and what is the single best by . Which management has a win behind them . Voice on five institutions. In particular, bank of america. When is there a reduction of expenses . Morgan, is ap. Function of increasing capital return. That is a 12 month outlook. I would love to get your thoughts on my morning mustread. It is out of sanford. She said conglomerates have become large and complex. Conglomerates become inefficiently large and complex. Sometimes they break as a result of market forces. Do not hold your breath for the same to happen in banking. We appeared doomed to continue living with an unhealthy system. Do you agree . Make a loters do not of sense in economic terms. You remember i used to turn look at analytics. You do not agree with that . The Community Banks had doubledigit returns. You have a more optimistic assessment. Yes. I respectfully have a different point of view. We like that. Look, i think the banks are the size that they are because of the customers they serve. Do you want to go back to Agrarian Society . Then lets talk about that. Lets rip up the script. Thats he test is on chris whalens book. This is the silliness of the media and a good part of america. You suggest that we yearn for a jacksonian america. Actually, reading alexander i thinks biography even the concept that a jacksonian utopia did not exist back in either. Lets bring it to obama america. That is where we live. We talked about management. What about strategy . The banks are differentiating themselves. Who is best positioned in 2014 . I do like the money centers. We also like regions financial. We have a buy on bb t. Mainly because of the inflection in the mortgage business. A lot of viewers will not know regions financial. What is distinction distinctive . Southeast financial institution. The sunbelt is in a good position. They are positively focused. Are the signs of james dimon fair . Can you comment . The site get you in the timeout chair . It is water under the bridge. Great exclusive. Thank you so much. Betsy is with morgan stanley. And a jpmorgan and wells fargo will kick things off tomorrow. What will political turmoil due in thailand . Single best chart is next. You are watching bloomberg tv. We are streaming live on your phone, tablet, and bloomberg. Com. Good morning. Bill ford, a conversation with him is coming up. Matt miller is in detroit at the auto show. Bill ford, always interesting. They did not go bankrupt. They are to 16 Million Units. This is bloomberg surveillance. I am tom keene. Scarlet fu has top headlines. We start with the federal reserve. It is investigating currency trading. They are trying to determine if currency rates were rigged. They are looking at whether traders shared information to manipulate prices. The European Union is considering doing away with targets for renewable energy. It could be part of a proposal for commissioners from commissioners due out next week. It would be a big change in a setback or environmentalist. Starts january 20 to deal with the u. S. And world powers. It will limit Iranian Nuclear activities. Sanctions will be temporarily lifted. Front and center of the weekend, look for those stories at bloomberg. Com. They are also out at bloomberg. Lets get to a single best chart. Our theme is trouble in thailand. A lot of political turmoil centered in bangkok. Opposition to elections that are scheduled next month. This is from the bank of thailand. It tracks torrents are rivals. What is interesting is that turmoil could kill towards him right as Chinese New Year comes at the end of january. A lot of chinese tourists. They visit thailand during the lunar new year. Their visitation will fall 70 in january. Tourism is a big moneymaker. About 7. 3 of gdp and growing. Art Hotels Offering steep discounts . Theres a lot of vacancy. They have snakes, right . They have a lot of things. Kickboxing, for one. Snakes. You are scared of snakes . Some, lets get perspective on these important moments. Based out of singapore, our Southeast Asia correspondent joins us. She is in bangkok. Good morning. What is the distinction of these protests . I know they are against the reigning family. What is different this time . It is not really different. It revolves around the issue of corruption. Both sides the reds and the yellows, accuse each other of being corrupt. The antigovernment protesters want the Prime Minister to step down and resign. They want her to delay elections. They are due on february 2. Some say that is unconstitutional. They cannot be done because of the protest. Tens of thousands of people came to put pressure. She said she may delay elections. I am reading that thailand is complex and larger economy than we think. Who do they depend on . Are they beholden to china or australia . They are neither beholden to china or australia. They have a always been dependent on themselves. Theyre one of the largest exploiters of rice. Panies that are reliant they rely on countries within companies within the country. Minister was in exile in dubai. His companies have supported the economy of thailand. We know that protesters are targeting locations in the capital. You want to block off intersections. If you are there, how different his life today . Our banks closed . Can you leave the country . It is business as usual. The seven major intersections are shut down. Protesters have blockaded, there are sandbags. If you want to get around, you can still do that. Routes have been rerouted. You can take the sky train. You can get to the airport. Give yourself four hours, but you will get there. There is help if you run into problems. Thank you so much. Reporting from bangkok. Cristina alesci has some photos. We will start with the state Memorial Service underway for former israeli president ariel sharon. Joe biden is leading the u. S. Delegation. That is the Memorial Service there. Afterwards, the funeral will be right after. That is at 7 00. A real distinction on the passing of aerial ariel sharon. A great leader. He was a dominant personality for 30 some years. It will be interesting to see how the new leadership is. Is he of the last of the generation . Very much. It is different when you have younger leaders. Even barack obama. They do not have the same context. What is the next picture . This is a mountain i talk about this every week. It is around indonesia. Crops are covered in mud and ash from a volcanic eruptions. The number of people displaced now is 25,000. That is impressive. You have to imagine these people have to be sick of moving every couple of weeks. It seems like this for cato is very active. It is very cool. There are a number of these around the world. Some of that mud has got to be good for wine or grape growing. Keep the vineyards intact. We have much more coming up. Martin feldstein of harvard will join us to talk about the december job numbers. They were stunningly low. What does that mean for Janet Yellens plan to spur job growth . This is bloomberg surveillance. Lets get you some company news from the files of bloomberg west. Accenture will try to fix the healthcare. Gov website. They want to repair the online marketplace. They get 45 million as the initial payment. Whichake over for cgi, was criticized for the rollout last fall. Beats music is going after spotify. They have unveiled a Music Streaming Service for 10 per month. The service has more than 25 million users and has converted only 6 million into subscribers. Hewlettpackard plans to renominate its entire spurs. The move is an effort to the old stability. Interim chairman will be renominated as part of this plan. That is company news. Never a dull moment. The friday judge court stunned all. The friday jobs report stunned all. What are the options for chairman yellen as unemployment rates improve for the wrong reasons . Martin feldstein is a professor of economics at harvard. Shocking jobs report. You nailed this. Not the only one, but one of few, three years ago. Very cautious about Economic Growth. Can you say that we have reached escape velocity and can have better growth . I think that 2014 will be better. After saying year after year that the fed and others have been too optimistic, we are finally going to see a good year in 2014. In london, they are talking about three percent Economic Growth. That is a change. Is it in best men to for Economic Growth is it an investment for Economic Growth . I think it will be driven by consumers. Bysaw Household Wealth rise 8 trillion last year. You disagree . The consumer is not flat on their back . I think that the consumer first of all, last year, the consumer reduced the saving rate and boosted gdp. I think we will see more of that as a result of this big increase in wealth. There is a surveillance exclusive. Bullish onpretty 2014. The jobs report on friday showed the job growth was uneven heading into the end of this year, or 2013. Will this be a year of uneven job growth again . I think that number on friday was just a mistake. We have never seen such a gap between the Household Survey or the adp survey and the final official numbers. 74,000 when the Household Survey said 140,000. Right. I do not believe that number. A question for him. Thesece 2008, a lot of data series that we have depended on have been behaving strangely. This one in extreme. How will we have a consumer led 2014 if income is flat . They do not seem to be pulling up their credit cards. It is a wealth driven consumer. You believe in the wealth effect . I certainly believe in the wealth effect when we have a trillion dollars more wealth. The average household did not have that. They are not the big shareholder. Half the population cannot get a mortgage in this regulatory environment. Advisor witheen an your work. The most interesting debate right now you see this inflation and worries of deflation, but you and president fisher say there is a worry about inflation. Explain that conundrum. Is not in 2014. The only question is whether, once the economy begins to pick up enough, that banks see good borrowers looking for credit. They can take the money that is on deposit at the fed and say, we could get a better return by increasing. If that happens too fast of a case, that could create inflation. Let us into your course. What would you be teaching to your students this january that is not in a textbook . What is different this time around . What is different is the importance of fiscal policy. Were in a situation where the feds Interest Rate is locked down at zero. Dont you think it is time for the fed to stand up and say that . Tell congress that they had to get in the game . We have been bailing them out. That is what i have been writing. The fed cannot be the only game in town. The fed chairman is willing to stand up and say that. Start taking risks. We may regret that. What should janet yellen due to create the tone . I think one thing that she has done is to talk about and pointed. Much more than inflation. At a minimum, we have to get better balance the twin the two. The public needs to hear that inflation starts to pick up and the fed will move in to make sure it does not get out of hand. Thank you so much. Great perspective. Foreign exchange moves over the weekend. Monday in australia happened hours ago. Stronger yen. Martin feldstein wrote years ago. The dollar in canada weakens. Thanks also to chris whalen for being a guest host. Coming up, chairman bill ford. A conversation with bill ford of the ford motor company. To recentt respond voting successes in dubai. Surveillance. F globe. O takes a golden this is bloomberg surveillance live from our bloomberg headquarters in new york. Where is the month going . I have tom keene the joining me. Scarlet fu is here. Cristina alesci is here as well. Our guest host is Senior AnalystGeorge Ferguson on planes, trains, automobiles and anything that moves. Heres Cristina Alesci with the morning brief. Lets start and china. High after the central bank raised the currencies really rate to a record. Economic data in the u. S. At 2 a. M. At 2 p. M. Willsh Prime Minister visit with president obama. Joe biden is there leading the u. S. Delegation. We have company news this morning. A big win for banks regulators watering down new concessionsd to for leverage ratios. Speaking of wall street, ups putting an end to speculation over investment banks. The ceo told Bloomberg Television that ubs is not considering the Investment Banking business. And volkswagen passes General Motors in china. Bw sold 3. 2 million vehicles in the country last year, edging out gm, which delivered three point one million. The smart first time in nine years that volkswagen outsold gm in the country. It also puts them a step closer to the goal of being the worlds biggest carmaker by the year 2018. It is todays company news. It is all driven by audi. Time is marching on. You look at shanghai where there is that buick sign. What happened to cadillac . Point, it to scarlet is about doing it in three or four or five or seven years. People want to be more like a government officials . Traffic lights and all that. We are going to move onto another form of transportation. Todays Online Shopper wants delivery fast. That did not happen over the holidays. We saw ups and fedex delivers some ups and fedex extreme some severe delays. For joining you us on bloomberg surveillance. Our retailers and other companies promising too much . I dont think so. We are investing an awful lot into that work in germany. Doing most of the domestic parcel should mince there. We have over 40 of the market there. Yearse been investing for and will continue to do that. It is a megatrend. We are going to see good roles we are ready for it. What kind of challenges did you face during the Holiday Season . Really christmas is the peak segan the peak season during the year. Doubleumes are more than than on other parts of the year. We are ready for it. We hire a lot of temporary employees. We have a lot of vehicle capacity, and a lot of sorting capacity. We are set for that peak. One of the things investors had questions on is what your strategy here is in the u. S. We have seen you guys comment strongly about five years ago and then maybe retrench a little. What is ahead . The u. S. For us is that International Express business. All across the border they are not part to spitting in the domestic business in the u. S. We are focusing on International Time critical express and we are doing very well in the u. S. Excellenten by our network worldwide. That is part of the same part the same thing netflix is struggling with right now. What makes this different . I think it is the extent of our global network. In many developing markets we are seeing we are number one in those markets. It nicely dovetails with the hs and fedex and ups. These planes have no windows. How big of a deal in the Airline Business is his work . Very big. Much bigger than we perceive . Im sure he comes up against them as competitors. Demo we were talking about thailand earlier. Have you ever shipped snakes . . O you have a snake container i dont know for sure. We are also number one in the air business. And also we are big participants in Ocean Freight. Than mostch bigger americans would perceive. How are you going to rectify that on a fiveyear Business Plan . How are you going to go up against our iconic inches at fedex and ups . I think if you go out to age out ton america asia and latin america, dhls has a dhl has a brand. Also in the u. S. We have a very also awarding business, supply chain warehousing business in the u. S. The express International Business is doing very well. How much of what happened over the Holiday Season in terms of the missed deadlines and shipment, how much of that was a liturgist was a logistics problem and a communication part committed haitian problem communication problem with the retailers . One thing were watching is the freight business is very low right now. How you feel about that right now . We see some signs of small improvement in the airfreight business. See what 2014 brings. We have seen a shift from airfreight to Ocean Freight over the last couple of years. Thank you so much. George ferguson continuing with us. If it is what we have in airlines. Cristina alesci demands makers mark when she is flying. Im guessing. Taken out by centauri, the japanese whiskey and beer maker. This is a deal worth 16 billion dollars. There has been some discussion about a joint offer. It looks extent tori is on its own. Likeoks like centauri santoruntory is on their own. , m taken back by the , 16 million. Sign to ans is according official deal. Right now we are still looking to get the price tag. Improvement by justin timberlake, i know he is doing a deal with a tequila company. This is a very interesting deal. Talked earlier about the consumption issues and there it is. Iswhat is notable about this it is a crossborder deal. Is risktaking on the part of corporate america. This is a little bit different. Enough with the deal talk. Lets get to the real story. What was your favorite Golden Globes moment and why . Andally liked it when tina amy poehler ripped on george clooney. Why are they so important . , it is to first take on the award season. People want to comment on what people are wearing. What the actresses were wearing. Is it because they drink at the tables . They do so you get a lot of unexpected moments. Let me do a data check. If i was amazed by the twitter feed. Futures at negative six. Thailand, i dont think it is playing in this morning. The euro dollar under 137. We breakthrough thats 91. 92 on american oil. Break through that 91. 92 on american oil. Ford motor is winning. The ceo sits in the driver seat. We talk with bill ford coming up. Watch him on bloomberg on apple tv. I am tom keene. Our guest host, smartest guy on the block. George ferguson is with us from Bloomberg Industries. He knows how we fly and the way we fly. 24 are built a week. 8200 in the past five years. They have had 36,000 takeoffs and landings. Can there be a used plane market . I dont get it. I walked down the ramp and i always look at the airline to see if it is a fossil plane. Ofsome of us are getting rid them. If you go fly delta, you will find more of the older airplanes still flying. They are earning good revenue, boosting profitability for delta. Who buys used inner planes yak obama in the old days, we would move those airplanes out into the developing world. In the last downturn we spent a lot of time at xm bank in the u. S. And in europe at the export agencies, trying to push airplanes around the world. The cardcarrying example with black we are card carrying jobs carriers. E some niche they will buy some of those older airplanes and put them in the revenue service. Is delta strategy just doing that to save money . , i think they are. Theirk it is part of fundamental business strategy. It just costs lest to do costs less. A essentially an airplane with two engines and a hunk of aluminum with but hunk of aluminum between them. They care about the plane or two engines . , the engines of the majority of the value of those airplanes. If we can spend a lot less money spend the airplane, if we 10 million and 40 million for burn 30plane, we can million of fuel during the life of that airplane or maybe less and come out ahead. Boeing airbus, what is the distinction between them . It used to be ceramic plastic versus metal. Au go on blindfolded between boeing and airbus plane. The distinction is narrowing. They are building its to compete with triple seven. I think it is a wide body to engine airplane. Boeing had a bit of a leg up for a while. The seven 87 extended their leg up in it is going to match. Oeings spec coming up, an exclusive interview. Ill forward to not go bankrupt. We will have that from the Detroit Auto Show. We get ready for Bank Earnings this week, and a busy monday. Scarlet fu and Cristina Alesci with me. George ferguson on airlines. Here is our top headlines. Them a couple of snowstorms in the month. Protesters in thailand have begun their efforts to shut down bangkok. They vie to keep the blockade in place until the election. The protesters want a special counsel to reform the political iran has agreed to restrict its Nuclear Program next week in a deal with the u. S. And other world powers. It limits their Nuclear Activities and returns some and in return some economic sanctions will be temporarily eased. The fed is trying to determine benchmark rigged currency rates. This probe is looking at whether traders shared information to manipulate prices. It will be interesting. We have all of them reporting through the week. Speaking of a frenzied couple days, we need to head out through detroit. Ford motor has been racing through its competitors. Staying put. He is he is not microsoft bound. Matt miller is at the north American International auto show in detroit. Someone who is very pleased with not begun to microsoft. Was this mean to ford . Obviously we are happy. Allen has been terrific. It just gets that whole conversation off the table. Your personal relationship that brought him here in the first place. We are looking at one of the products that started the design started when they got here. The new mustang means a lot to you personally. It is the quintessential ford car. I have way too many of them. I have taken it personal interest in every mustang we have come out with since i joined the company. I lived in europe for so long and you cannot buy a mustang over there. I never understood why not because Everybody Loves them there. Now youre going to be selling this worldwide when your biggest competitor comes out of europe. You guys are going in there with all the products they want. Our global plane is working. It really is built for european roads. The handling, the acceleration, the balance of the car. The europeans are going to love it. I was introducing it in barcelona. It in the u. K. And other places that have right hand drives. You mentioned you cannot get them before but dealers used a gray market. People were paying twice as much. The vehicles that are quintessentially american one of the vehicle that is quintessentially american is the ford f1 50 p. M. You guys have revolutionized this. Tell us about the new aluminum bodies. It is great for our industry. You take the best selling vehicle and take a big step forward. I think a lot of people expected us to do more of the same. This is a big departure. It is military grade aluminum. Everybody knows it will take a lot of weight out. What people are missing is the capability of this truck is greatly enhanced. Braking, better telling, this will be a better truck all the way around. The cool thing is you kind of took the reins here at the height of americas gas guzzling movement. You have managed to move forward in a direction that is more fuelefficient and data better for the environment. Is that your legacy here . Washat was something that important to me personally, that we become known as the fuel economy leader across every segment. That is traditionally not something that ford is known for. We are not turning it into a great strength for us. Just a fuel economy story, then it would not be a winning combination. What is really cool about this truck is you have both. I am talking with alan and in a couple of hours we will focus on that as well. What is the future for ford, what is coming next . What is 2013 hold for beyond the . We have 23 new products this year. It is our biggest launch this year. We are growing everywhere around the world and that is a big deal for us. Beyond that it is all about technology. Have all talked about automated driving. All the pieces that will make terms of vehicle communication, Vehicle Infrastructure for communication, we are working on all of that. Is as the world gets more congested we can still provide the freedom of mobility to people, even if they live in heavily populated cities. A lot of this technology is to make peoples lives easier. I listen to bloomberg surveillance. I am so glad bill ford is going to solve this problem for me. We are working on it. It is something we want to solve. Thank you so much. Bill ford from the Detroit Auto Show. Thank you so much. The average time you have to wait for new airbus plane to be delivered. The head of airbus joins us. This is bloomberg surveillance. I am here with tom keene and Cristina Alesci. Time for some company news. We start with breaking news that happened in our ago. The japanese whiskey and beer maker, is paying 16 billion to buy makers mark w. They will pay a 25 premium. The cfo of General Motors says the automakers will move closer to reinstating a dividend, imprudent improving cash flow. They have built a case for payout. Gm has suspended its dividends back in 2008. And Universal Pictures taking the number one spot with lone survivor here co. The film about a two thousand five navy seal operation in afghanistan took in 30 8 million in ticket sales. Frozen took the number two spot. That is todays company news. For a wreck for a relaxing ory time. T a little bit more intensity. Them for a relaxing time them i you are know bill murray. You are no bill murray. Your expertise is in the metal and moving boxes. My expertise is in paying ridiculous airline fears, particularly now we are seeing planes empty. What is the state of the efficiency of the Airline Business . We are as efficient as we ever have good. At taking my money. That is part of my job. Most are up in the 80s for u. S. Airlines. We never thought we would approach those levels. You see some Airlines Push closed into the 90s. That is amazing. When you are running a business airline, you are not running it to max out efficiency. You are selling your frequency and network. What they need to do is size that service so that Business People are paying good money to go at the right times of the day and have frequency back and forth. Is there constraint with the success . If you are talking with american theynes or delta, are saying our major airports are just not getting done . , we have a lot of air traffic. Are we done with our Airline Consolidation . There are no more players left. I think we are done. It seems like the justice departments lets america go through. We try toen know who cobble together into a full circle. What happened to southwest . Southwest is in a very interesting situation. I think we all know it was a lowcost carrier but frankly theyre looking more and more like a fullservice carrier like a frequency provider. They have great tv ads. My question is about jet blue. The grounded all flights for 17 hours. Are we going to get more episodes like that . , i hope not. You never want to be grounding your fleet. It seems like there are some real operational problems. Clearly the weather played into that. But there are some fa regulations. You cannot keep passengers for a certain period of time. You have to have equipment in the right place. There was a lot of talk about jet blue becoming a target of a takeover. I am not sure necessarily what they get you. You have some Leisure Network in there, you have some business up in the boston. Where are we in the airplane design . Up where allto end the luggage on the plane is carried on board. That is my dream. I will not travel with anyone that checks their bags. No road trip. What do the Airlines Want to . Them im sure they would have bringna alesci go on and her bags on. You can travel with just a carryon. It is all about efficiency. I have the louise vuitton, the big bag, just for the bowties. Ties are light and portable. It is the low cost to carry it on. Come backgoing to with George Ferguson. Lots to talk about. We love to talk about egg planes. How about small planes as well . , lets get a data check ahead of the open. There is not a lot of data coming up this morning. We have s p futures down five points following a stunning jobs report on friday. Good morning everyone, bloomberg surveillance on Bloomberg Television and radio. All of our interviews out of Bloomberg Radio plus and bloomberg tv plus on your ipad. We are thrilled to tell you we are on apple tv as well. Today, at the data check it is the typical monday churn after a jobs report. If there is one thing on the screen that gets my interest, it is a weaker canada and also based longer chinese remain be. And also a stronger chinese remain the. Tomorrow we begin our serious planning of that today. George ferguson is with us on Bloomberg Industries. He covers the Airline Business. I believe christina last week talked about the retirement of the dc9, the but Donald Douglas of mcDonald Douglas engines. What is the service of the fossil jet . I dont know if there is any symbolism. We are still flying empty 90s flying md90s. Is it emery air . Air . Is it emery they are great. We have rising Interest Rates at the same time fuel costs are going down because of the revolution in the United States. What is the impact on airlines . We think we could be living in a far different world with a higher cost of ownership because of higher Interest Rates. We are bringing a lot of oil into the network into the u. S. Look at the price of used airplanes versus new, we start to think somewhere around the high three dollar market jet fuel price, which is above where we are now. It is where you would start to think about using a used airplanes over new. Why dont i buy a brazilian airplane and why cant we make those here in the United States . We tab victim here. We can make them here. The 737. W body is you get a lot more markup on the widebody. What you are going to see around the world is developing economies that want to be in the airplane business that start with a small planes and move up to the large planes. They are all moving into that regional and moving up to the narrow body side. It is a bit competitive down there. Reallysaid we dont worry about that market being too competitive. Lets stay with narrow bodies where we have 5000. Have six years of production in the backlog. Whatis an economic does it mean for big jets . , i am really trying to upgrade here. Is it a boom economy . We see the expense of Business Jets doing well. The entrylevel Business Jets are not. Corporate Balance Sheets look good, corporate profitability looks good. When they get to a point they buy the biz jet. Who buys a plane . Airplanes, who finances them . Who actually owns them . D probably owns a bunch of the airplanes. Lets say someone like united , they use a lot of enhanced Equipment Trust certificates. Investors go out and invest on these bonds. We own the united airplane we are on. That is a military way of saying it . United, i want better pretzels. To payare going to have for those pretzels. Thank you so much. A lot of private jets flying from the west coast to the east coast after the Golden Globes. What was your favorite Golden Globes moment and why . I was watching the twitter feed. Tweet at us. This is bloomberg surveillance on television and radio. Im tom keene with scarlet fu. Cristina alesci is here. I want to fly. The wars are heating up. Not the carriers, the manufacturers. The new plane will not be ready until 2017. The biggest competitor, boeing, landed over 97 billion on orders during the dubai air show, ending the total numbers of new aircrafts sold in boeings favor. Joining us from the airbus press conference is the airbus executive are you going to beat boeing at all this year . Is there any possibility you could get an edge over boeing and potentially beat them this year . A ice i think 2013 has been a very successful year for airbus. Reconfirmed our position as the Market Leader in the by order industry numbers, order volume, as well as as far as our production was concerned. When i think of blowing getting all the headlines this year, i think of a lot of problems. What are you doing now to take it vantage of the week position boeing may be in given the these negative headlines . For us it is important we are absolutely on track. As well as for the entry into service for our launch customers quarter ofe fourth this year. When you look at the airbus and the migration, what we notice is airbus is becoming more like boeing. Boeing has learned a lot from airbus. On an engineering basis, what are you going to do in the next five years to make airbus distinctive . I would not like to focus too much on engineering. I think it is more important to talk about the overall Improvement Campaign at airbus. On ourworking competitiveness, as far as and productivity improvements our concern. In order to become faster, simpler, and more thank you so much. He is with airbus. George ferguson is with us. Very quickly, is the new airbus the same or is it more coalesced . [inaudible] there are partner nations inside the consortium that would have provided components to the airplane. Good morning, everyone. It is bloomberg surveillance. George ferguson of Bloomberg Industries is here. A musky company news from the files of bloomberg west. The Tech Consulting firm won a contract from the government to repair the on line insurance marketplace. Takes over from cgi, which was criticized for the glitch filled rollout for the site last fall. Beats music is going after spotify. Hasheadphones maker unveiled a Music Streaming Service for 10 per month. More than 23 million users but has converted just 6 million of them into paying subscribers. Hewlettpackard plans to renominate its entire board of directors. Is moved is an effort to build stability after years of board turnover. Ralph whitworth will be renominated as part of this plan. That is from the files of bloomberg west. The headphones, that is a huge story. It is way cool. My neighborhood would do it. Theres real money in this deal. Million out about 300 and this deal and it comes down to the brand marketing. ,f you compare the headphones there we go. Do think they would do a bowtie echo, i had would to a bowtie echo, we will treat out a picture of this e . Uld they do a bowtie echo the question is are they cooler than ear phones pioneers rock. Them a he is selling his brand. He is selling cool. There are is News Executives behind us. This is going to take him into the content business up against spotify. Content, what about the celebration of content last night he echo last night . There were some real losers there. There was a big ruffle. It is different than the other award shows. There is more alcohol. People are more relaxed. In the 18 hours a day you work on this. Television is taking over. Tina fey and amy poehler rtv stars. Our tv stars. Where are we in five years . More tv in that content . In. The oscars could come there are more opportunities for actors. That bryannst and cranston said this was not something he could have done in the movies Bryan Cranston said this is not something he could have done in the movies. Get an awardto show he can be nominated in. Explain to me why the Golden Globes is a big deal. To run thelly front oscars . Is there a linkage . Palma it is the kickoff to award season. It is the kickoff to award season. Cool to see movie stars nervous and unrehearsed and a little bit unhinged as well. The stage. Alked off there was a prompter problem when jonah hill was up there. Them a paperd script. Movies have you seen only the ones they show on the airplanes. Eyesight ben stiller movie, that i saw a ben stiller movie, the walter mitty movie. A ben stiller movie, the walter mitty movie. The oscar contention time right now. Everything is building up to the oscars right now. We want to build up to our twitter question of the day. We asked what was your favorite Golden Globes moment and why. Not from Golden Globes, the new game of thrones trailer. A lot of tv shows on yesterday. The new season of girls, downton abbey. There was a new show that premiered on hbo yesterday. To that overlap . If you watch eight hours of football you are not probably in the mood if you watch eight hours of football you will watch anything in front of you. Tom, what are you focused on . Theext week and we go up mountain and then go south for three hours on the train. Michael spence writings we can. Christine lagarde at the International Monetary fund. 2013 remains suspended the between hope and uncertainty. You madam, flying on all engines. I used a title of rogoffs book for my we are not up to escape velocity. Real question of sustained growth. What are you going to wear two. Post . , im going with the same look him a suit and tie pin them europeans do not want us in suit and tie. All the americans dress and the europeans try to be casual about it. It is a cultural thing. You have to get the gears. The goofy coat thing i do not do. I am paying attention and to amend a i am paying attention to an mende. To m a. The big question in the ament a market in the m a market is this is a deal we have been waiting for. Another big deal is sprint and whether or not it is going to pounce on tmobile. There are people around. What is the distinction between charter and Time Warner Cable . Time warner cable is huge. Is charter more midwest . Inregulators will not stand front of this deal because theres not too much overlap. My agenda is the Detroit Auto Show. Of new vehicles to be unveiled. Matt miller will be purporting live from the Detroit Auto Show later on in the program. We will be focusing on pickups. Jeanip the aluminum for of the f1 50. I think we can make that the twitter question for tomorrow. The goes back material used in cars versus planes, what is the new new in material . Wrap intohe tape we and wings. It is one of the first carbon fiber wings. On ae you more comfortable ceramic composite airline or do you need it to be metal . I think modernday aerospace designers, it is very sophisticated. Is the battery thing gone . It will be interesting to see how this plays out. Airbus decided they were not going to they were going to go back in technology. I love bloomberg surveillance. We talked material stylus material science. It is great. Bloomberg industries Senior AnalystGeorge Ferguson joining us on the Aerospace Industry and of course new composite materials. You merck surveillance on radio continues. In the loop on Bloomberg Television is up next. Live, i have alix steel, here with trish regan. Betty liu will be here in the next hour. Our guest host is ian bremmer. He created wall streets first Global PoliticalRisk Management company. Good to have you here. Im getting all my sleep. This is the week at all the sleep. What are you looking for . I am for people who are excited. They were much more excited last year because of the turnaround. After all of these years, they can see the end of the tunnel. This year, they realize that we are picking up. Is a long slog. There is no easy breath in what will be an uptick, but difficult. O period. Lots of europeans a topmost. Hings are good