Transcripts For BLOOMBERG Bloomberg Surveillance 20150211

Defiant and says there is no way back, and he cannot condemn the people to more pain. Russia indicates president Vladimir Putin is headed for peace talks in minsk today and a deal to negotiate a ceasefire is likely. Meanwhile officials a ringling over the degree of autonomy to give rebelheld eastern regions after nearly 10 months of fighting. French president for his wall lined and german chancellor Angela Merkel spoke earlier today and said they hope to attend a summit. President obama spoke on tuesday and hope to reaffirm ukraines territorial integrity. Brendan president obama is set to ask the congress of a for formal authorization to battle Islamic State. He wants the use of enduring Ground Forces and engagement would be limited to three years. Lawmakers of both parties are skeptical to the approach of fighting extremist militants. A bill drafted by the House Armed Services chairman would allow the credit on to spend 1 billion to help ukraines military. It would supply logistics and supplies for the fight against prorussian rebels. And nbc nightly news anchor Brian Williams has been suspended for six month without pay. And historic era of latenight television is coming to an and. Jon stewart is leaving the daily show. No word on the 52yearold comedians future plans for stuff you have been at the helm of the daily show since 1999. Tom apple and tim cook, the iphone maker ended tuesdays market trading and somewhere in the vicinity of 711 billion dollars 711 bazillion. Apple dwarfs exxon mobil, which has a market cap of passes much, 285 billion dollars. We did in his trap elation this morning and it up in the vicinity of early 2020. Olivia 1. 7183 is what apple would have to hit. You take the last split out and it would be trading at 854. Apple is now 84 larger than exxon. Brendan samsung is trying to introduce a third screen on the edge of its newest galaxy model, desperately hoping that people will notice that is still exists. Tom seriously goes to gimmicks will stop it is gimmicks versus ecosystem. Brendan i think that is right but also apple figures out you stay in luxury brand, you never moved down market to compete. Tom is it too early for a surveillance correction . I said tuesday. Brendan it is wednesday, the 11th. Olivia that is our collective disappointment. You can buy all of the companies in spains ibex 35, the benchmark of a madrid, and still have 46 billion last. Brendan that is not fair. That is just mean. Spain is having a hard time. Tom the real issue is developing cash flow. Lets go to a data check right now. Equities, bonds, currencies, commodities. It is strange. I cannot convey enough with the news flow out of europe the 10year yield was 2 , we are there, euro we are there. Nymex crude worth noting below 50. Next screen, please, tania. The vix shows a good equity market. 0. 21 cash under the mattress in germany. Euroyen showing a weaker weaker yen 135, and in greece, chaos ensuing as anybody travels to brussels. Lets go to the bloomberg terminal. This is a snapshot of the one way back from the euro. The headline here, Brendan Greeley, is this is more redder than it has ever been. This was a little bit redder a little while ago, now it is way red. This is a parody. Brendan no one except tom is allowed to make complex charts. Olivia lets clarify to the viewers we are looking at aladdins magic carpet. Brendan i will put this in laymans terms. I booked travel to dump lend to meet front from germany in may. This means i will be paying for beer in euros. That is what that means. Tom cheaper euro, better for american travelers. German exports and other exports really could do well with that. Brendan i will be sure to remind my german friends of that when expect me to buy the beer. Tom i can bring the bar to a complete halt in discussion. Olivia for better or worse. Tom lets get to the serious matters of the day. The import of the international relations, domestic relations of europe. It is a great drama. If markets are not moved, one can consider the outright bizarreness of the germangreat debate. It is not euro crisis, then at the minimum there is massive euro uncertainty. Bloombergs Francine Lacqua is in london. Brendan brown joins us of mitsubishi with skepticism on the euro experience. For a guy a ski is here to pick up the debris in the markets as well, joining us. Francine, what have you learned in the last hour about all of the players moving around . What is the immediate news . Francine tom the immediate news as it does not like we will have an agreement in brussels. You are looking at the bond yields look, if you are a greek person right now, you say i gave a demand to my government for less austerity, i want them to negotiate, but the germans will not budge. Is that fair . Of all the noise coming from the groups they have a 10 point plan, which they are presenting today, but it is very unclear how much reforms will be put through and how much tax they are collecting, tom. That is the crux point. They want an agreement to extend but they also need to deliver in terms of reforms. At this point, it is not clear whether they will do it or not. Tom heres the morning mustread. Brendan greeley, let me go to you on this and bring in brendan ground. Brendan brown. Greece spends less on debt service than italy or ireland with the official foreign debt amounting to next to nothing, one point 5 of gdp. Debt service is not the countrys problem. That is essentially the germanic view, isnt it . Brendan g lets be clear that daniel gros knows more about this than i do. The debt load, one hundred 75 of gdp, which is what greece is looking at. It has got good rates and good maturity on this. Brendan brown historically, no country has ever pay this off without some kind of a head haircut. Brendan b that is correct. You have to look at the appetite of investors for that debt. It is all very well, japan having a gross jet to gdp of 150 and the whole world is happy to hold it. Brendan g you have an watching the euro project forever. To be a euro country, you have to hold your debt, 60 of gdp. Ireland would have to have a surplus of 7. 2 until 2030 to get there. These are unrealistic tom to your first point, the whole idea is a haircut. Grow up into a haircut on the debt for stop you have written about this. Where is the dialogue to do what all the grownups say europe should do . Troy there has been a haircut, the ecb are all holding debt to greece. In any market terms, there has already been a big writedown of debt, so one has to take that into account. The other aspect with a look at here is the bleeding of capital out of greece every day with people getting their funds out. The longer this goes on, there is no money going in after that. Olivia francine, i want to bat us back to you. I remember a late night with you in may 2010, in brussels, the very first night of the great ballotilout. Are we looking at essentially a third haircut, that the entire bailouts, package for greece has failed . Francine you have to look at the greek banks, and i remember that evening. I asked that very question to the head of assetmanagement, and he said there are two points to make, we are in a different situation because the ecb next month is going to start by an european bonds, so there is a kind of complacency on the markets, which we did not have two years ago. That will put less pressure on the politicians. The second when he was making is that in five years, we have never seen views that have been so different. If you look at where the mandate of the greek government is and where germany, along with frankly the rest of the euro zone, we have never had such a big gap in terms of is this negotiating tactic . Some say this is negotiation of the negotiation, but it does not look good at this point. Brendan g we have been talking about a haircut, and it looks that there is no room to negotiate on that whatsoever. Is there room to bite on conditions, the austerity it has to go to, in order to get the next ftraunch . Francine what we are hearing from finance ministers is they may but, but we have not talked about, brendan, is the fact that the weapon, to go for a great analogy, is russia. Is it a threat when the foreign minister of greece goes to russia saying this is a great country, and germany is trying to put extra sanctions on russia . Politically, this is much more of a hot potato. A haircut is a possibility as long as the greeks dont push too far. Olivia francine, thank you so much, Francine Lacqua of the pulse, and also banks to Brendan Brown and troy, who are staying with us. Should europe forgive greeces debt . Tweet us bsurveillance. Still to come on bloomberg surveillance, president obama has a lot on his plate. What is his best military strategy . Will discuss as he goes to congress to seek more war powers. This is bloomberg surveillance. On bloomberg television, streaming on your tablet, your phone, and bloomberg. Com. Tom good morning, everyone. Bloomberg surveillance. Oil in america, 49. 73. Soft yesterday and oil a little bit of a bit earlier. We are under 50 a barrel. Words watching. Lets go to Brendan Greeley right now. He has our top headlines from around the world. Brendan is really are taking aim at Prime Minister and been met in yahoo Prime Minister benjamin netanyahu. Critic concluded his former envoy to washington who says his address good hurt relations with the u. S. The speech was arranged by House Speaker john boehner without white house approval. U. S. State department is closing its doors to us and the sea in yemen this morning urging its american personnel to immediately evacuate due to terrorist activities and civil unrest. There has been increasing turmoil in the country. The u. K. And french embassies are also closing their doors for the time being. And the United Nations human rights chief has issued a report on libya saying all factions are guilty of grave abuses ranging from deadly attacks on civilians, executions, abductions, and torture. It faces its worth escalation of violence since qadhafi was overthrown in 2011. Olivia the president wants new war powers to fight Islamic State for stopping president will ask lawmakers for authority to fight without an enduring offensive combat role. He could send his request to congress as soon as today. For more, lets bring in peter cook, our chief washington correspondent. What exactly is the president asking for and how much support will he find . Peter well, he is bein theirg his chief of staff, well, he is being very coy. His chief of staff, denis mcdonough, has briefed. He is asking for use of military force against Islamic States limited to three years, we are being told. There will be a limitation as well on no enduring offensive ground operations. There is still debate among democrats as to what that means exactly. There would also be specifically and here removal of the 2002 iraq use of military force, and there would be some question here about whether there should be some geographic limits placed on the use of military force here. Some democrats say absolutely there should be, others on capitol hill say no. That is just a rough outline of what the president is looking for right now and what he hopes to get from Congress Going forward, even though we are still in the middle of a fight against Islamic State right now, six months in. Brendan peter the president is trying to thread a needle here. He wants to approve special forces for special operations but not for any other ground troops. Is this part of a broader strategy that he is engaged in . It seems the politics are it is ok to send in americas superheroes but not reservists. Peter the reality, brendan, is the president would not get approval for anything except what you just described. The use of special operations forces, for example, the rescue of downed pilots members of congress are pretty confident that that would be a good idea at this point, so the reality is anything beyond that would not win the approval certainly of most immigrants up on capitol hill and probably a lot of most legislators up on capitol hill. He has to give the authorization for military force, be able to anticipate what might be needed in the future. Olivia peter, speaking of mission creep, this is a president who ran his campaign is on promises to end wars and here he is dealing with forces in afghanistan although they are leaving in iraq, and now they are at it for new war powers. The president has assumed a much more active military posture than he wanted to, isnt he . Peter absolutely. This is a reluctant president to be sure to getting in this fight but a fight still this white house believes and be waged against the Islamic State. This is going to be be really intense the bank up on capitol hill. I cannot overstate some of the strong feelings of right now. This is a strong feeling we are having in congress in 10 years, and there people reluctantly as well but eagerly looking to debate this on the floor of the senate and the house. They have real questions about whether or not this is the right move right now, both republicans and democrats. This will be in the words of john boehner a heavy lift. Brendan does this signal anything about the new congress you go youve got democrats, republicans and the white house all coming to a compromise. Peter i think that is a good point, and one things i heard about republicans and democrats as the president s outreach on this effort has been pretty good so far. They have gone looking for language from those lawmakers. It was not exactly the same sort of mode of operation we saw from when democrats controlled the u. S. Senate. In some extent they reach out more because republicans are it more in control in the president is more likely to get support from republicans than democrats on this issue. Brendan peter, to ivory much peter cook from our washington bureau. Olivia still to come on bloomberg surveillance 800 million going into the london tech on obscene will step we will be joined Eileen Bergen of passion capital, who is leading the charge. Stay with us. Tom good morning, everyone. Bloomberg surveillance. Lets get right to a morning must read. Here is Brendan Greeley. Brendan this is bloomberg surveillance. There was a brendan there was a beautiful profile out of our beijing bureau by of bloomberg news. She is talking about xi jinping. She said his writings wrote sold more than 3 million copies was up almost every party boss, down to the village level, owns a copy. The book includes photograph of him shoveling dirt to prevent a river flooding. Youre looking at the whole world from mr. Mitsubishi securities. This cult of personality will help the xi jinping with the help of all the policy changes yesterday can china for stop there is a long laundry list there, right . Brendan b there is a flight of capital out of china, this personality colts, the corruption scandals that go with it, and secondly, it can turn off international investors. 1 trillion of foreign funds coming into china over recent years, which has finance capital outflow. If you get less of that coming in, then you are looking at a fight on train on chinese currency. In the loopolivia china is attracting a lot more for investment than india is. India, if anything, seems hamstring by its democracy. Brendan b that is the case up until now. The more dubious nature of chinese credits and how much they appeal. Brendan g troy, do you say that as a net and if it were loss . Troy in terms of investors, china is such a wild card. Everybody is counting on china not to collapse. As long as it grows 6. 5, 7. 5 the coast is clear. Investors have written that off long ago. It is like a no go zone. You just have no predictive power. Brendan g because of the uncertainty. Troy uncertainty, you cannot trust their books and records, and furthermore, how to you get play . To you play to your equity markets . Brendan g this has been interesting. With a colt of personality that is supposed to attract capital, and we have two people who put their money where their mouth is and they say it scares them a little. Olivia i like that the biography of Vladimir Putin sells out in china. Says a lot about the model. Still to come on bloomberg surveillance, check out our tour to question of the day should europe forgive greeces debt . Should greece give another haircut or are the germans being punitive. Please tweet us bsurveillance. This is bloomberg surveillance. On bloomberg television, streaming on your tablet, your phone, and bloomberg. Com. Tom good morning, everyone. Bloomberg surveillance. Yean weaker oil soggy. Futures a little light. We need top headlines this morning. Brendan disagreement over the evolution on the issue of gay marriage. David axelrod says in his new book obama saint opposition to gay marriage, and obama said he is mixing my personal feelings with the issue. And a new agency designed to coordinate the Cyber Intelligence it is modeled after the cyber terrorism center, which was established after 9 11. And the Powerball Jackpot sits at an estimated 485 alien million dollars. No one has hit the jackpot in more than two months, but that can all change with tonight to drawing. Do not get too excited about the possibility of claiming the big money. Your odds of winning are about one and 175 million. Those are your top headlines. Olivia the mayor of london is in town. He is leading a trade investment to british tech and it looks like it is working. The amount of u. S. Capitol going into london Tech Startups has debord to has doubled. Eileen burbage is ceo of passion capital. She is a veritable fairy godmother of angel investing in europe and is one of the investors on the trade and i should point out was the third employee at skype. Eileen, so good to have you on this site. Eileen thanks, olivia. Olivia what is the difference between seneca valley and the tech scene in england in Silicon Valley and the tech scene in england . Eileen super and fresh is fantastic growth, and we are now seeing that in london, but as it is about three years or four years behind. It is absolutely explosive right now. Brendan b you 70 pasties on silicon brendan g , you said in the past you found it very insular. Eileen as olivia mentioned, i moved to london to join skype but far more diverse than Silicon Valley and it pulls talents, diversity of thought from all over the continent and really all over the world, and that is one of the assets of london and white we cease to many u. S. Companies, u. S. Founders and investors now looking to london. Olivia is london really the tech capital of europe or is it stockholm or berlin . Eileen objectively, there is more talents, heritage in london, the language being english, the time zone, and the overlap between the two different parts of the world it makes it london 100 . Tom how many years ago did people in different cultures hear differently, and i have read that people code differently in the united kingdom. What is the difference of working with techies out of Imperial College in cambridge versus working with techies out of stanford or caltech . Eileen i went to urbana. I do think it is a little bit different, but i actually think the upside is some sectors where london tom what to do they do differently, how do they think differently than we do . . Eileen it is one accustomed, less creative think of this as a pitch. You are here, talking to us about Tech Startups in london. Troy gayeski is with us. Are you booking a flight to london right now . Troy we focus more on liquid markets. Eileen you need to start looking at london. There have been massive exits over the last year. I would argue that for the last two years, you have been right no reason to pay attention. In the last year what you are seeing is a whole lifecycle in london, which is them feeding back into that ecosystem. Troy historically people have fretted in europe that they will not create a big internet champion might we have in the u. S. Is there probability overtime the europe can compete with u. S. In terms of may at cap . Mega cap . Eileen absolutely. Skype is the only company that has sold an accident for more than 2. 5 billion more than once, that is londonbased, that is a european success story. We have done it more than once and we will do it again. Youve got even private companies that are achieving these same valuations, whether it is shazam firefox. It is absolutely happening, and it is that investors peril if they ignore that market. Olivia you have an incubator, a lot of different start of your nurturing. Give us a taste of what you were working on, for example, the app lulu, i can attest that i had gotten into an argument over an anonymous review, that is one of eileens companies. Eileen she has moved her business to new york, by the way, which is part of the reason that the mayor of london is here because there is such a Natural Bridge between new york and london. And make so much sense. In addition to lulu and other things they are really cited about tech 26 percent are in tech and services, really excited about the Cyber Security industry, and in other places like new york and london. Olivia how long does it take you to decide whether you are interested in invested . Eileen it is faster to decide no. It is the yes decisions that take a little bit longer. Brendan g where does that come from . Cambridge, berlin, where they train . Eileen it is all of the above which is why london has a leg up over Silicon Valley and maybe even new york. Brendan g it cannot be all of europe. Eileen it is all of europe. They have such a rigorous Academic Program in Computer Science love it is coming from berlin, stockholm, all over the continent, Southern Europe u. K. , you have got tamers, oxford, you see a, imperial. You have people coming over you have got cambridge, oxford uca imperial. Tom i am flabbergasted at the cluelessness of americans at the tech in united kingdom. It is stunning. With paul wilmot inventing accessible quantitative finance at imperial, though people here think of them 14 miles east of palo alto. Brendan g what is the view from the San Francisco miss . Eileen as an investor in london im glad they are not paying attention because then it gets me an opportunity to keep an eye out. They are starting to pay more and more attention and actually, as the london mayors here, they will be announcing later this morning about companies that are getting funded from the west coast venture funds and east coast funds as well, so they are starting to pay attention. Olivia what is the fundraising environment like . Is it harder to raise money in europe . Eileen the flow of capital is definitely smaller. It is probably harder, but the Good Companies are always getting funded. More people are competed with each other whether they are coming from the states or based in london and europe. Olivia fastening stuff them eileen, thank you for coming on, Eileen Burbidge of passion capital. Please be sure to catch betty lius interview with the london mayor Boris Johnson coming up right here on bloomberg tv on in the loop. Brendan g coming up, spacex postpones its launch of the falcon 9 rocket again. This is bloomberg surveillance. On bloomberg television, streaming on your tablet, your phone, and bloomberg. Com. Tom good morning, everyone. Bloomberg surveillance. Again looking at oil, it cannot get a bid. We are not looking for crisis or panic, but there is oil under 50 a barrel. Olivia sterns and Brendan Greeley with most. Rockets away. Brendan spacex scrap the launch of its Unmanned Falcon 9 lorocket. Todays single best chart looks that public funding for the space rate. Surveillance chart was trying to figure out what the role is now of public funding in the space race. There is not really a space race anymore. What we are looking at right now is spending on nasa as a percentage of the federal budget, so we are not looking at absolute but where it is as a priority, and you can see we do not really have a Space Program. We had briefly a moon program, and since then it has been tailing off. 2004, a bullet points, bush targets mars, and then it steadily declined until 2015 obama targets mars. Tom the distance there is for the rocketry is seriousr, bute therea is nol consensus in congress. President s love to talk about it but a mans program, i do not know if there is a consensus. Olivia is there a bad thing that there is private money going into a . Maybe that is a good thing. brendan i do not think it has been made clear what the point is, what the end goal is of this. There was a clear reason to be the first to get to the moon. There was an easy way to get a democracy beyond that. Now it is hard as a voting citizen to understand would be in goal is in spending a lot of money on rocketry. Troy gayeski, you are nodding. Troy for the average voter who has gone through tough times to spend tens of billions of dollars to go to mars am it does not make sense. For scientific reasons, it is over academics, but for the average voter brendan g dr. Brendan brown there is even a Space Program in india, china has gotten into it do you see longterm that driving activity in Space Exploration up . Brendan b it is a political space issue rather than a lot of autonomous private funds. Tom look at the remembrance of Neil Armstrong finding a bucket of stuff in a closet and everybody else is hysterical about it. Brendan g how much more is nostalgic about that then excitement about this . Tom you have to create your new nostalgia, and there is no constituency. This is the number one argument i have with my father. He believes in manned spaceflight, and im looking at your chart bring your start up again what portion of that chart now is unmanned spaceflight . To see saturn or the Different Things going to the sun, those new shots of the sun and the solar flares, what part of that budget brendan g interestingly rented brown put on pointed out that this is still state driven, we are still the era of sputnik. Tom there was a shot this week on twitter of mars, the robot going around mars, i think it is like a hummer 2 anyway going around mars and it has shots of rocks that were certainly striated because of water. Do we want to go for that come into your points, brendan, i say this to people to get upset, there is no constituency. Bush can do it, obama can do it, the next man or woman can do it, there is no constituency. Lets do photos. Olivia number three in Eastern Ukraine tom this is another massive project. Not to make a joke of it. Olivia embedded Russian Missile hit on the streets early on wednesday, early this morning, at least 15 were killed and 60 wounded in the recent attack. Several dozen missiles also hit residential areas in the airport. Of course there is this emergency minsk security meeting. We know president Vladimir Putin is going, merkel and hollande the french and german leaders are also going for stuff you have to wonder if vladimir is going to settle for anything less. Tom ukraine forces, pf forces retake kiev forces retake the marioupoul olivia area. 44 pounds of explosives were used to bring a 12story building down in just 10 seconds, the first casino imploded in the city in just the sixacre lot will be turned to mixeduse. Brendan g olivia, it is a most like it is a metaphor for the state of the gaming industry. Olivia i have to get to this photo, at the zoo in tokyo, an employee dressed as a snow leopard to train employees on an animal escape. They tasted with ne they chasecdd it with nets, darts and that is how they train in tokyo. [laughter] tom always it is in your head like ok, what if the tiger gets out . Ok, what if the tiger gets out. Brendan g a very developed area, yes. This is what surveillance looks like on friday afternoon. There is me running around waving hi to everybody, and then they try to tranquilize me down on the ground. Olivia look at how small those people are compared to the snow leopard custom. It is a custom that some lucky unlucky employee as wearing. And they take the time to cast the net. Troy do they really shoot him like for real, with a tranquilizer . That is insane right . Olivia next on bloomberg surveillance, we will discuss something more seriously, this is bloomberg surveillance. On bloomberg television, streaming on your tablet, your phone, and bloomberg. Com. Tom good morning, everyone. Bloomberg surveillance. Futures 4 markets very quiet given the geopolitics of europe. We need to get to our top headlines from around the world this morning. Here is Olivia Sterns. Olivia nigerias war against boko haram i than other ally its neighbor niger, is joining. The unanimous vote by nigers national simile follows a lease for tax inside the country in less than a week. And another conviction tied to last years ferry catastrophe in south korea. The former coast guard officer was sentenced full study was not on the doomed fairy but he was captain of the first ship sent to the scene. The court saw them negligent in the rescue effort. The thinking claimed more than 300 life, most of them students on a school trip. The u. S. Is planning to withdraw most of its ebola personnel from west africa. The outbreak there has been sharply reduced. President obama is expected to give more details about next steps later today for stop last year the u. S. Had 2800 troops deployed to west africa. Just 100 will remain after april 30. Those left behind will work with liberia and u. S. Civilians. Tom you mentioned nigeria. Their currency moves to a new weakness, one of the few currencies finding new weakness ever weaker against the u. S. Dollar. Front and center this morning, without western, the geopolitics of ukraine and greece. Merkel will attend, there is a mystery as to whether mr. Hollande will attend in minsk. Central banks attempting control, stability and some fortis great unwind to come. We know it is not found in our economic textbooks. With us this morning, troy gayeski of sky bridge of skybridge capital, Brendan Brown of mitsubishi. This is all original territory, isnt it . Brendan b very much. The fed unleashing a plague of through the use of unconventional tools. Tom what will be the price . Brendan b the price of the end stage of this will be effective temperatures and another crash in great recession. Brendan g a plague, tell me how you really feel. Brendan b it is a plague and the sins of many markets we look at, driven by irrational forces. When you look at german yields or french yields at 1. 6 , we do not even know whether it will be around in three years time. Who is chasing these yields . Olivia this is the socalled dark age of monetary policy, what is the catalyst for the renaissance . Brendan b that depends. Crucially, the u. S. And 2016, if we have the asset price deflation before then which way does the u. S. Go . Does the pendulum go toward accepting free Market Forces getting back to monetary stability, abandoning qe, and having long run price stability, or do we go into more qe, more on the conventional forces, more regulation . Those are choice of the u. S. Will have to make and 2016 if that is the timetable. Brendan g lets turn to troy gayeski of skybridge capital. You have actually got some money, not you personally, but skybridge, riding on greece right now. Troy we took a small portion writing into february 1, and that is because we have been following it for a few years. As long as greece state in the eurozone you would at least a double your money over three years, and the interesting thing is coming into the month, february 1, we thought 20 probability was actually high. It is probably lower than that. As you see these negotiations play out and look at how hard of a line they have taken, it actually is around the 20 probability. If that happens, there will certainly be losses, but we like the riskreward of greek security. Olivia is everybody in your office biting their nails for what comes out of tsipras mouth . Troy yeah. Tom brandon, do what you do best the european Call Community and the rest of it there is a sense for americans, ok their chaos is not our chaos. You as a londoner you as a student of europe, why should care about the silliness in the United States . Brendan b because eventually the key issue is what effect does it have in germany and what effect does it have on the frenchgerman relationship. We saw hollande and merkel in these negotiations, but the francogerman negotiations have become almost noneffective. Tom Francine Lacqua said that earlier. Brendan b if we have a huge loss recorded on greece as a result of what happens here opened up the german public, the issues Going Forward is going to be why did we ever get into this . Can we imagine the german public having a truth commencement why did they allow greece to come into the eu in the first place . I think you will see such a revulsion of german Public Opinion, like the swiss Public Opinion on the intervention against the experiment, that you didnt have to say will germany be behind the project Going Forward . Tom Brendan Brown, thank you so much of mitsubishi, troy gayeski. Let me do a forex report right now, not moving so much this morning. 1. 13 eurodollar, but more weakness on the ukrainian currency, hryvnia we will watch a very closely again. Oil again, 49. 70 on oil, stay tuned for another hour of bloomberg surveillance. This is bloomberg surveillance. It is a bridge too far as the demand a deal for greece. Putin is there with a 70 likelihood of a ukraine agreement. That is the least of the headlines, folks. Like had 80 headlines in the last hour or so on the ukraine peace agreement. And on Bashar Assads politics we speak with jonathan tepperman. Good morning, everyone. This is bloomberg surveillance live from our world had headquarters. Im tom keene. Joining me, Olivia Sterns and brendan really. Brendan greeley. Looking forward to speaking with jonathan tepperman. And you have headlines. I began in greece ahead of the emergency meeting in brussels. The german finance minister says there is no plan to discuss a new deal or give greece more time. The new finance minister is maintaining a hard line. Here he is speaking yesterday. How much of the bill out there do we accept . 0 , dear colleagues. Your red lines are ours as well and we have more. But if we read it line by line, about 30 of that agreement is toxic, and we reject it. The Prime Minister elect also remains defiant. He says there is no way back for his government and he cannot condemn his people to get more pain. And russian president Vladimir Putin will attend peace talks amid word that in ukraine ceasefire is likely as officials wrangle over the degree of autonomy to give the eastern held regions. Prensa hollande and Angela Merkel Francoise Hollande and Angela Merkel will also be in attendance. President obama is said to ask Congress Today for formal authorization to battle the Islamic State. The engagement would be limited to three years. The white house hopes it has found middle ground with lawmakers in both parties. On a separate front, a bill drafted by the Armed Services chairman would allow the pentagon to spend a billion dollars to help ukraines military to provide weapons and logistics and supplies for the fight against the prorussian rebels. Nbc news has suspended Brian Williams for six months without pay. He is at the center of a firestorm after admitting to exaggerating stories about his coverage of the iraq war. And his work area latenight television is coming to an end. John daly john stewart of the daily show will be leaving. No word yet on his plans. He has been at the helm of the show since 1999. Collect dont buy dont buy apple. They will sell their shares. The new market cap, 711 billion. 711 brazazi dollars. Llion the company has a market cap of 385 million. I will put this chart on Bloomberg Radio here is a bit. If you take the current trend of apple and extrapolate it out it takes a while to get there but 2019, 2020. Greg apple shares have to get to 17183 171. 83 for a market cap. It is 82 more than exxon mobil. Apple stock is up only 50,000 from its ipo. Brennan, there have been about three lives to apple. There have, and i have been wrong at every turn. Its important that i stay as quiet as possible. Greg when asked what he would do with the shares, he said he would return the shares and give the cash sell the shares and return cash to shareholders. My nephew said i told you so, right yet right . Meanwhile, over in europe, it is a greek drama. If markets are not moved, one could consider the politics of bizarreness. There is massive euro uncertainty. On the watch in london keeping track of this, and as i mentioned, bob nardelli is with us. He is the former chief executive of chrysler and cocacola. We will talk with him in a bit. Francine, i asked you an hour ago what the latest was. Who is going. Merkel is putin is going. Merkel is kind of going. And we have no idea if hollande is going. What will happen in belarus . They are waiting for, i would say, some kind of agreement or belief that they will reach accord. Angela merkel and Francois Hollande traveling to russia over the weekend. That means they may be getting i thought that meant they could be getting closer to something. How wrong was ayako how long was i . How wrong was ai . Collect have you ever seen it was crazy . Yes, but with the tooth iphone park, no. You have rush on one side with the sanctions, but then you have the greek situation. Yesterday, the Greek Foreign minister said clearly, if we dont find an agreement with the eu, we will look elsewhere. Does that mean rush a does that mean russia . Possibly, it could also mean china. Haircut is not the only way. That would get around the german no to all of this. I discovered a text for my brotherinlaw and she said shes very confused about what a haircut is. If the Debt Reduction for greece. Its a Debt Reduction for greece. Heads of state meeting at the state financement your minister finance minister in brussels. Does the European Union even matter right now . If you look at the European Union, we hired we have a couple of commissioners who say they are working. But they are not at the end of the day that are trying to sign off on this. Today, these finance ministers are meeting in brussels together with the european condition commission. They are the facilitators. They are the guys that give recommendations and come up with investment plans. But at the end of the day, they are not really shelling out the cash. When you talk about political differences, it is the individual countries that will have to vote. They are not the guys with the pursestrings. Francine, for our viewers and listeners outside of europe who are not following this on a day by day basis, give us a sense of a timetable. Is today the final day of reckoning . When does greece actually run out of cash . We dont actually know. That is the problem to a lot of analysts and insiders. The fictitious they would be the 28th of february, because that is when the deal with the eu and the imf with greece comes runs out. The point is, theyve been having tax collection. If they have been collecting tax, which enables them to support themselves for a couple weeks longer, then thats fine. We will have to see how much tax greece has collected in the last couple of months. I would say in the next couple of weeks something needs to happen. I dont know that we have a precise day where we say greece has no more money. Francine, thank you so much from london. Robert nardelli with us. Bob, we will talk American Investment in a bit. This has to destroy nz any ceo path confidence of a strategic plan. I dont know i dont care if theyre going to denmark. This is a huge distraction. I mean russia and greece. You think of the size and impact it is happening. And if they leave, does that open the door for italy and for spain . You know, cascading effect. In and you have this whole ukraine situation that is causing tremendous unrest. I think of nestle or siemens to lower matter, johnson johnson. How they plan . You talked about apple. Look what they did in switzerland. They hedged. They did. The concern is political division. What happens if they effectively negotiate a new bailout . Is no longer a question of market risk, but political contagion. Uncertainty all over. To the twitter question of the day. We want to know what you think. Are the germans being punitive . Should the euro forgive greeces debt . Good morning, everyone. Im tom. Where are we on oil . A little under 50 on american oil. Here is Olivia Sterns. A quote from a canadian living in italy running an american car company. Sergio marconi was at bloomberg hq yesterday and sat down and talked about taking for our republic. In the interview he said the execution was going to be very short will stop very short. Sergio marconi saying how easy it will be to take for our public. Bob nardelli used to run chrysler. Would you want to buy a ferrari, or ferrari stock . Probably a ferrari. That i think sergio is right. I think that is a fair expectation. It is an unbelievable brand and has tremendous aspiration. I think the stock will do great. I think his plans to increase production, that was one of the issues, from 7000 to 10,000 per year. I think he will do well. Help us understand the force of Sergio Marconis personality. He worked his way into the familyowned fiat. He is now traveling almost every day around the continent. How much does his personality play a role in all of this . It is huge. He has a tremendous presence. He is a very intelligent negotiator. As you say, he has worked his way into the family and displays many of them. And there he is standing with the chairman and ceo of fiat. And john is certainly that head and the face to it, but sergio is certainly running and pulling all the strings. He did an unbelievable job in negotiations with the government. He did one of the greatest american giveaways certainly in my business lifetime. I give him credit. He is a shrewd operator and negotiator. The stock is up 27 year to date. I spoke to bill miller, also in bloomberg hq yesterday, and he is bullish on fiat. And this is why spinning off ferrari, and the fact that i the eurobased currency, and a big north american business. And the ability to think you global well introducing alfa romeo here. Very smart supportive parent. Do you agree . Partially. Chrysler is what has supported fiat. If you reflect back, without chrysler, fiat would have gone into bankruptcy. It was chryslers products and cash that has kept fiat alive over the last few years. Maybe they should spin chrysler off again. Twice of course, thats the great irony. First Sergio Marconi says chrysler, and then chrysler saves fiat stopbob nardelli will be with us for the hour. Good morning, everyone. Bloomberg surveillance and im tom keene on this monday morning wednesday morning. Here is Olivia Sterns. Taking aim at Prime Minister benjamin netanyahu. Unhappy about netanyahus plans to address the u. S. Congress about the Iran Nuclear Talks next month will stop critics include next month. Critics include his former envoy , saying the speech could hurt relations with the u. S. The speech was arranged with white House Speaker with House Speaker john boehner without the white house approval. And american personnel were ordered to immediately evacuate the embassy in yemen after unrest. The French Embassy is also closing their doors for the time being. And the United Nations human rights issued a report on violations that range from deadly attacks on civilians to executions, objections, and torture in libya. If it does its worst political escalation of violence since Muammar Gaddafi was overthrown in 2011. Watching this report from the Human Rights Commission about libya, that has to be playing into what is happening on capitol hill right now. As they think about authorizing the use of force and isis, we have this vivid example in front of us about what can go wrong. What can go wrong, and it also plays into the intraregional politics. There is a soup going on now that is off the radar because of russia, ukraine, and greece. Quest that is a nice segue to our next guest. We are talking about syria, the civil war entering its fifth year. Already 200,000 people have been killed, one million wounded, and over 3 million are refugees. Jonathan tepperman met with Bashar Alassad in january making them the First American journalist to interview the entrenched leader since 2013. Great to have you on this morning. A pleasure. A fascinating read. I would encourage everyone to pick it up or read it online. This is a man is this a man u is deceptive and playing cold, hard politics, or is he delusional . Quest that is exactly the question i came away with as well. It is impossible to know for sure. Either he is such a good liar that he is a sociopath because he was absolutely relaxed during our interview and told these incredibly baldfaced lies with utter conviction, so the best case verio is he is a sociopath. He actually believes what he is saying that is the best case scenario, that he is a sociopath. Or he actually believes what he is saying. That he might merely be a liar is the better because then it suggest that he is a rational actor and he might be able to be reasoned with. If he is completely delusional and really believes that he is winning a war, then there is no talking to him. But how do you see this ending . Is there any sign that he will negotiate with the rebels . Absolutely not. He tries very hard, and this is what makes him such a savvy interlocutor and devious as a debater. He tries to present himself as being reasonable. I asked him how the war ends. He said, first of all, all wars and politically. There cannot be a military solution. We would be open to all parties talks with no preconditions. But when i asked him what that actually means, would you willing to accept a solution that means you leaving power . He said, everything is on the table, but any change in the Syrian Government would have to be approved by a referendum of all the syrian people. When you think about the fact that this is a government that controls at most one third of its territory. And it won its last election by 89 of the vote. That kind of undermines the whole premise. Jonathan, what is damascus like at the moment . Does it feel like a city at war . In a sense, it does. The signs of war are everywhere. All the buildings are hidden behind glass walls. There are gun to gunter at under sections. I had to there are gun t urrets at intersections. But then i saw people waiting on the street students waiting for buses to go to school. I saw women without their hair covered going about their business, dressed very fashionably. All of that feels very normal. But i could hear artillery booming from my room while i was there. Another thing about this that is so interesting is that the western stance seems to be slipping very weakly. Now it appears that the u. S. Appears to be open to letting them stay in power, if you can call it staying in power. I want to read a quotation from your interview. What do you want to see from the u. S. . Pressure on turkey, pressure on guitar to stop supporting qatar to stop supporting the rebels. Does he think he can work with United States as a partner . I think he does. There have been signs in the recent weeks that some in the u. S. Government have come around to that view as well. We used to talk about assad leaving as a precondition to negotiations. That link which has completely disappeared in what u. S. Officials are saying. And there have been a few leaks in recent weeks, in that the u. S. Is considering some kind of accommodation with a thought. I thought would not have a thought been a ssad would not have granted this interview with me in the first place without this notion. That is why he came across as so reasonable. The price for cooperation would be total acquiescence to what he wants. And the question is whether he will work with the 5000 troops that the u. S. Is helping to train in saudi. Much more to talk about. The president is preparing to ask congress for new war powers today. This is bloomberg surveillance. Good morning. Im Olivia Sterns. But getting to the top headlines. Disagreement over gay marriage. David axelrod said obama feigned opposition to gay marriage hiding his true beliefs, fearing he could help him with voters. He also said the same interview, its clear that the timing the times are changing. We have hit a Critical Mass with states that have recognize samesex marriage. It doesnt make sense for us to now have this patchwork system. Its time to recognize under equal protection clause of the United States samesex couples should have the same rights as anybody else. And staying at the white house, the Obama Administration is trying to level the Playing Field against hackers. The agency will be modeled after the National Counterterrorism center established after 9 11 to coordinate terrorism intelligence. And the Powerball Jackpot sit at 485 million right now, making it the fifth largest lottery size in u. S. History no one has to the jackpot in more than two months, but that could all change with tonights drawing. I dont get too excited about the possibility of claiming the big money quite yet. Your odds of winning are about one in 175 million. You better not quit your day job. Now to our guest host, robert nardelli, the former chief executive officer providing leadership to home depot and chrysler. He knows the best late strategy can be absolutely crushed by the changing winds of your customer. Bob nardelli on the desk of the big mac and the classic bottle of cocacola. Here are two companies, much like you have faced before but their main products have been challenged. A two by four was never challenged at home depot right . When we were there, we had what we called orange works, and we were driven for product innovation. We introduced a tool with multiple tools off of one battery. With mcdonalds or cocacola the harder it gets the farther you get, the harder it gets. What are you doing not to score of the not to screw up the core product . You can never take your eye off the fundamentals that got you there. The need for customer centricity , and to always make sure you are into with where your Customer Base is going, not where they have been. Do you ever faced the challenge of i dont want hamburger, or i want something from aaa, or i want a vitamin water or whatever i want something from chickfila or im one of vitamin water or whatever . If you look at the Product Differentiation from certainly the carbonation to the diet to the expansion, they are very sensitive to the customers perception the customers perception of dietary needs. I thought they did a great job of product innovation. Where have they stumbled recently echoed are you on the board . I am not on the board. Where they stumbled recently . If you look at, dont forget what you have learned, roberto was there and now they are under pressure on capital deployed. A lot of capital. What youve brought up which i dont hear much in the media is the exercise of leadership is really the exercise of how much capital to put their. Two parts how much and where to put it. Discussed that. Certainly today the activists are much more tuned into the use of capital and the return of capital to the shareholder. You are exactly right. The strategy has to be where do i deploy it . And how does it enhance my image with my customers . You cannot be more laser focused on customers, customer trends, demographics, and change. Change is the only constant today in the business environment. When you look at mcdonalds, immense challenges there. Really, a dietary shift with the new dietary guidelines coming out from the u. S. Really, if you look all the way back to the cross, we are seeing major shift in what was engineered grains per volume two now go into nonengineered glutenfree, and the highest price per bushel. In the last 24 hours, i think maybe mcdonalds will bring back the 24 seven and commitment in. Egg mcmuffin. I could really use an egg mcmuffin right now. Mcdonalds shares are down by about two points. And looking at whether there could be a day of reckoning for greece is still putting a tiny bit of pressure. Nymex crude down on speculation about growing u. S. Majorities. Growing u. S. Inventories. Good morning. Im tom keene and with me is Olivia Sterns and Brendan Greeley. Yesterday, thousands of troops diploid from jordan to iraq deployed from jordan to iraq. The american president is seeking a declaration of war on Islamic State, but it is still primarily a war within the middle east. Jonathan tepperman you spent some time reporting from the middle east. Help us understand the full line the fault lines that the Islamic State is opening up. Technically speaking, the coalition to fight isis has Something Like 46 countries. In terms of brass tacks its much smaller. The u. S. Is contributing close to 90 of all the materials, troops airplanes, etc. And then we have a few countries, mostly bordering syria or in the gulf that are also flying missions as well. What we saw last week in the case of jordan was isis and is absolutely brutal killing of the pilot, trying to scare a tentative, ambivalent member of the coalition out of fighting entirely. Before the killing, Something Like 67 of jordanians opposed the war, arguing it was not their fight. In part, because they were worried that justice kind of thing might happen. And the pilots own father had come out saying several times saying we should not be fighting isis. This is not our war. After the killing, you saw a complete reversal, both with the pilots father, but also the entire population getting behind the king and arguing this is now our war and we need to respond much more robustly. From that perspective, isiss strategy has complete failed in the shortterm. But what happens longterm . As fatigue starts to set in, as jordan starts to suffer more casualties. Does this change the mood in other saudi arabia in other arab countries as well . Where is saudi arabia on this . I think the population is ambivalent. Extremist groups like al qaeda have always gotten an enormous amount of support, as well as Financial Support from the saudi public. The government, however is steadfast in his opposition to all extremist groups especially isis. The biggest weve seen in the past two days is uae which dropped out of the fight some timing december sometime in december, claiming the u. S. Was not doing enough if one of theirs got captured. Sure enough, they are now flying again. But the plan now is 5000 troops from the u. S. To train the socalled moderate opposition. Its not clear whether president assad will actually let them into the country. My question for you is to what extent is there actually a moderate group in the region . Those 5000 troops are critical. Everyone agrees, from president obama to president assad, the war against isis cannot be won without boots on the ground. Right. Who are these people . And your ago, obama called the moderate opposition of fantasy. That is a quote that assad like using now, in part because they had been virtually eliminate it. I thought had focused all of his war efforts on a moderate to create this dichotomy. There are not many of them left. The guys that we are training had been vetted pretty carefully. A lot of them are islamists, but they are not isis and they are not al qaeda. They may be more turkish or egyptian style islamists. They believe in a the state, but moderate. And some of them are defectors from the syrian army, etc. Correct it is just incredible, it is just incredible that the u. S. Has a hand in training the next potential threat to the u. S. And that is why obama has been so slow in making this happen. Jonathan, thank you for joining us. Jonathan tepperman with his fabulous interview with Bashar Alassad, the First American to get interview an interview since 2011. Since 2013. Be sure to read that. 100,000 is how much it will cost you to buy a mustang gt in the chinese market. Why is it worth almost 100,000 . Dr. Delhi will help us figure it out next. Bob nardelli will help us figure it out next. Good morning, everyone. Im tom keene in new york city. The theme for every American Corporation is what to do with digital. It was front and center in davos this year. Not even twitter or Cyber Security, but the investment in each and every corporate process. The investment in digital in each and every corporate process. Robert nardelli was at chrysler and then home details home depot. What is the panic across American Corporations about digital and logistics . Digital in the mailroom . Cyber security, brandon, which i know you look at a lot, but just digital everywhere. There was almost a panic at davos. I appreciate the confidence of a and home depot. I think every ceo, every conference that i participate in , its all about the internet of things. And part of that is being driven by a low and slow economy. They have to drive productivity. They have to drive efficiency. And a big part of it is customer response, customer trends. I think the ceos of Corporate America are doing a good job. And to link this to jeff in health and she just theeff immelt ige, the only way to link this is with the internet of things. Correct they were doing that both with the locomotive and the Power Systems business geoflow everything, so we could do a better time in maintaining uptime. Because we can give them a 15 to 20 year guarantee performance. When we went to utilities, we were serving our customers customer to make sure they had the power that they were counting on. When you talk about the internet of things, a lot of what comes after that is hot air. Ideas that Companies Know they need to be on top of but the toasters coming out of the internet seem to be understood uninspired. What can drive productivity . I will give you an example. I was at caterpillar and they have had a remarkable implementation of the internet of things relative to the equipment, relative to the supply chain. Within the process and the product also. If you think about what theyve done their, and john deere has done it, automobiles are doing it. I think we are seeing it everywhere. How has it changed the warehouse, for one . Increasing capital by shortening the supply chain. Looking at the quality process to avoid repair and return. I see it all over industrial. What we have 30 seconds. Can i ask you a dumb question . Driverless cars, is that a real thing . Will that happen . It depends. Flat open road, maybe. If you are taking a cab in manhattan, i probably would not getting in it not get in it right now. Going to our twitter question. We asked if europe should forgive greeces debt. Tweet us. Good morning, everyone. Tomorrow on the program, stephen king at hsbc. Look for that in the 7 00 a. M. Hour. Nigerias war against boko haram find another ally. Neighbor niger has joined the coalition. The coalition is convicting troops to an 8700 strong force will stop 80 8700 strong force. Former coast guard officer was sentenced to four years in prison. He was not on the doomed fairy but he was the captain of the first shift sent to the scene. The court found him negligent in rescue efforts. And the u. S. Is preparing to which are almost of his ebola personnel from west africa. They operate has been sharply reduced. President obama is excepted to give more details about next steps as soon as today. 2800 troops were deployed in west africa, but just 100 will remain. Those are your top headlines from around the world. Turning now to cars, something our guest host for the hour, bob nardelli, know something about the mustang is going global. It just went on sale in china for the first time in its 50 year history. The v8 version of the mustang gt with 435 horsepower will cost you about 32,000, but in china nearly 100,000 nearly 130,000. The really think chinese consumers are going to pay 130,000 for a mustang . I tell you, i love the price. If i was mark, i would ship every mustang i have over to china stop i think they will. My experience over 30 years when i first started going there, it was all about who had the best bicycle. Now, they aspire. The aspiration for armani suits, highperformance muscle cars cars like mustangs, i think there is a good shot people will pay that. I was struck by a New York Times article over the weekend about the chinese moving to the gold coast for schools. Is it american brains in general, or just mustang . No, i think anything american. When we had our ge plant over there we had our jeep plant over there, it did well. Should we be building them here or there . No question, building them here gives us a tremendous advantage. Im all for u. S. Jobs and u. S. Productivity. I think there is a financial potential potential financial advantage. You dont have transportation and export taxes. But i dont think they will start doing that right away. Youve got to be working a car plant to ships, about 150,000 units per year. Inside china, there is a murmur about two years old that its not worth going over there to do a joint venture anymore. Its just not worth the risk. The you see it that way . Or is it still worth the risk to investors . My personal experience is that it has been very challenging to do a joint venture over there. Im a little tainted from my own experiences. I think it is improving, but still challenging. What has to change . It has to be a more open more cooperative. It cannot be the first is that you sign a joint venture is the best day of the deal. You start getting a separation of interest among who wants to do what the design criteria are, who will invest the capital, and what the share of volume is coming out of the plants. What is the new globalization for American Companies . We throw a big we throw around big words like transnational multinational. Forget about it. What is the new globalization . If you look at a lot of companies, my old company, general electric, they did a great job in running volume offshore. And now it has come back to hurt many of our corporations relative to the exchange. You have to be able to really give it pivot. We have really seen that in his early earnings season. Procter gamble, too. How do you shift a company that weekly . You have to change the volume. Our gdp was low, so you cannot hold them for going offshore. But the key is your have to have a builtin hedge. You have to make sure your supply base youre Manufacturing Base you have some equilibrium in where you are going to handle the exchange impact. Do we have the logistics to export . When corporations, particularly in the midwest say, we want to send stuff to brazil, to china, does america have the export logistics in place . I think we have them the infrastructure. Obviously, with what is happening on the west coast with the ports and a disruption that is a showstopper. That create unbelievable uncertainty for u. S. Manufacturers. My idea of exports is moving body through the laguardia shuttle. May i ask you quickly about harry wilson . Very interesting. This is the enemy within. This is someone who helped go through the bankruptcy restructuring, so he kind of knows where the words are. But i think mary, as we were talking earlier, she has done a phenomenal job and set the bar on quality. I think she will do a great job. Citigroup is just hugely optimistic on gm. Time now to answer the twitter question of the day. We asked you should europe forgive greeces debt . The overwhelming response on twitter the majority i thought essentially saying no. And this, our first intercom i know the former greek government made a deal, contract that should be sued by. The second comment, that should be stood by. The second comment, the idea was greeks will become as productive as germans. Forget or let go. It does feel increasingly like the germans are being punitive. It does, and also, part of it is accepting reality. You have to fight going on in europe for someone is, what is right . Did greet mess up . Absolutely it did greece mess up . Absolutely. Did germany mess up sending so much capital . Absolutely. Can any come country pay off this kind of debt load through fifth thrift and growth . The former leader of ireland said every time he goes to brussels for a new deal, he set a structure so that it does not a precedent for anybody. The morning mustread shows the interest burden that greece has seen his lower. And this goes back to where the markets say it is not as bad as the political headline. You have italian and spanish yields. Im sorry, there is not a crisis. Look at the euro. Norway with exports that were good today. There is a crisis that will happen in a couple of hours in brussels. Finance ministers are getting together. We dont really know what is going on in the room because all we have seen so far is posturing. I wish i were a fly on the wall. And on my agenda, think this is a big deal. The president is going to seek authorization for new war powers. He could go to congress as soon as today with the request. He is going to ask for the use of enduring and defensive ground force engagements limited to three years. This is the first time in over a decade we had a constructive comment conversation in congress about going to war in the middle east. There are many questions about whether the president has more opposition from his own party or the gop. And as peter cook pointed out, what is significant about this war powers resolution is that it is seeking to carve out just special forces operations and not runs or reservist. That is a completely different thing. And a threeyear timetable that essentially ties the hands of whoever the president is. Talking about technology and what corporations are doing with digital, we still go back to the romance of putting things up in the air. Elon musk with spacex, something to watch. We see many different efforts by private enterprise. And i still go back to the a man, the images weve seen this weekend, three moons of jupiter transiting across with the shadows on jupiter. I think that is where nasa has to be. And this morning in your own conversations with your father its very hard to disentangle what is the value of space travel and what is the bayou of nostalgia. Bogner nardelli, thank you the value of nostalgia. Delhi, thank you. Bob nardelli, thank you. Stay with us through the morning on greece and ukraine and russia. Good morning. We are live from bloomberg headquarters. You are in the loop. We are 90 minutes away from the opening bell and a special guest with us this morning, the mayor of london and a native new yorker we will talk to Boris Johnson about the situation in greece. Londons tech sector, the american invasion. Football, the american kind. The Digital Strategy at it well seems to be paying off. At aol seems to be paying off. The fastestgrowing beverage brand youve never heard of. Heres a look at our top stories this morning. The battle lines have been drawn about greece. They will talk about the bailout. Germanys finance minister says there are no plans to discuss a new deal. Greeces new government says it has to renegotiate