Officer. This is like aerial combat. It is about advantage. And all advantage is fleeting bloomberge from here you are never permanently European Headquarters in london. Defended here you are never this is what we are talking about. Breaking news on the ecbs omt. Permanently successful on the offense. It is all a tail chase. But you can make yourself are they will ask the Top German Court for device on it. Less likely to be a successful this just crossed bloomberg target. Look, i understand the turner will terminal about 10 chancellor sensitivity but let me tell you what we did to our president when he was minutes ago. The Constitutional Court has president elect. The senator was wedded to that sent omt, the unlimited bond blackberry. Buying plan at the ecb, to the president elect, European Court of justice. They say the ecb program may the Security Services said, we cannot do that. Overstep limits. The blackberry is unsecured . They are more secure than let me take you back a few said they he actually summers ago, when mario draghi said he would do whatever it takes to save the euro. He followed that up with this are going to have to pry it out unlimited bond buying plan. Of my fingers. In a Public Television broadcast. It offered real stability for out ofeeded in prying it these markets. The threat that the german Constitutional Court could fall against it is something that has his fingers for today so we could put enhanced security in been hanging over this for a i t. He continues to use his while. It is not in the ecb mandate to monetize the debt within the blackberry. Eurozone. Here is the back story. They were talking about buying we are telling soon to be most powerful man in his national in the secondary market. The big shadow hanging over the eurozone was whether germany capital that if he uses his cell would rule against it or not. Phone, lots of foreign the sense right now, talking to Intelligence Services are going to listen to his phone calls and read his emails. A couple of people, they are passing the buck to the eu top lets fastforward to chancellor merkel. Court. If the United States had been you have got to say, ultimately, doing that against her and i one view could be that it could am not in a position to say take some of the risk out of the but if we had, i think the decision. Who is more likely to rule in american Security Services are about the least of the favor, the eu or the german chancellors worries with regard Constitutional Court . To who was listening. Hans . Right now, the euro is off a i mean, im fascinated by touch. If you are looking in the bond this conversation. Market, the front end of the just when we get a corporate yield curve, only a touch espionage, or the danger for shutting down or vulcanizing the higher, a few basis points. Or is not mass hysteria about internet, what should be the this headline right now. U. S. Administrations response this is the concern and it will and what should be the response be debated through the morning. From Tech Companies in silicon remember, this is the program that offered this eurozone valley so you do not cover par penalize the internet and you have a free flow of information . And you dont stability in the Financial Markets that it needed. And allowed mario draghi to say we will do whatever it compartmentalize information . Takes. Here is what i do not we do conduct signals understand. The german Constitutional Courts have effectively said the omt is intelligence. I think we do it lawfully, i think we do it in accord with likely illegal. International practice but we do. , this is something that it very well and we spend an awful lot of money at it. Thoseuccess has given should not be pursued. They have effectively politicize this and it could be something folks who want to balkanize that is more likely to follow to get approval. You could end up with a clash between the german Constitutional Courts again. The internet. They are not afraid of and espionage. They are afraid of freedom of it makes it even more difficult to fathom what the ultimate speech. We need to be careful that we do outcome is going to be here. Not so overachieve and espionage that we dont over legitimate remember, we were getting euro zone inflation of toys seven those countries arguments to limit freedom of speech, percent, way below the target. Balkanaizize the internet and ce it also comes at a time when they were talking about no longer sterilizing the smp down what has been a wondrous program. Event for mankind here and we if they cannot make a decision it is unlikely they will may have to take some voluntary restrictions and be more transparent. And that is actually a very ironic sentence i just stated. Make a decision on that program. The germans are against creating because i think the british and new money, printing money, american Intelligence Services are the most transparent and the buying bonds of government in the eurozone. Most selflimiting on the planet right now. We knew the decision was going interesting. To be a sketchy one. Quick followup for you, i cannot bring you the analyst comments on this right now, general. Go ahead. Quick followup. Because it only broken the last halfhour. Going from a few comments, rule do you use a blackberry or an on it. They want to pass the buck. Iphone . They cannot make the decisions when did you switch and do you themselves. Do Online Banking . I use an iphone. Eu probably more likely to rule for it than i had no such device until i against it. Wrote i left government. The very latest on this omt and i do Business Online with great care. Which means that you do legality. The sochi Winter Olympics, the Business Online. Worlds most expensive olympics are we going to see more cyber games, begins with the opening threats . Yes. Three credit glories of ceremony tonight. Credit gore is Russian Companies are among the winners and losers. Ryan chilcote joins us more on countries, criminal gangs, and what the games mean for russian businesses. Hackatvists. Noterussian bank put out a the sad news is the tides is talking about which countries are likely to gain from the coming in, and all three of games and which are likely to lose. Those boats are becoming more one is the national airline. They say because they have increased the number of flights capable. This is going to get worse it will from 5 to 15, before it gets better. General like a patent, former director of the cia and nsa have more revenue and profit. Longerterm, as they move people general Michael Hayden. A short going to take to and from the games, the perception of aeroflot will break. We will be back in a few minutes time and continue the conversation right here on the pulse in advance of the nonfarm improve, which will help their investment case. Payroll number. When you and i start going to russia, people called it ter riflot. It has come a long ways. People do expect shares to rise as a result of that. Shares have risen about 50 in the last six months. The other company is called yandex, the google of russia. They have 60 of the Search Market in russia. Interesting company, also expanding internationally to places like turkey. Your stock doubled last year. Their stock doubled last year. Could be theng it most connected ever, meaning more added revenue. They expect yandex to rise. Those games technically now underway. The Opening Ceremony coming about seven hours from now. Forhere are some winners all competitions and there are a few losers. Who is losing out . Play out. Seen that if you look at the statebacked the bunnies, where you have one russian owner with a very large stake, a lot of these listed companies have very small free throws free flows. There were calls from the kremlin reminding that it is important to invest in sochi as part of the social responsibility. Investors say yes, but that might not necessarily Bring Company profits. You saw investors taking money off the table. The Worlds Largest producer of , they are down about eight percent as a result of that. The Worlds Largest aluminum producer also a lot in sochi, very little of which having to do with producing aluminum. There shows there shares down by a third in the last year. These companies, if they are statebacked him a certainly have a dual mandate. Bringing money to their shareholders, but also making nice with the kremlin and ensuring that that investment that the kremlin wants to have and actually does. Much indeed. Very Ryan Chilcote on the latest from sochi and the businesses that are benefiting or not benefiting. Bank of England Staff may have condoned practices at the heart of a currency manipulation investigation. Staff are said to have told currency traders that it was not a problem to share in pending customer orders with counterparts at other firms. We helped uncover the story. She joins us with the latest. Susie, this could be much bigger than libor. What are the implications for the bank of england . The key thing here is the bank of england is yet again in controversy of rate rating two years after it was criticized by lawmakers are not heeding warnings. Here we are with another benchmark taking place. That hasm one of those been accused of various manipulations of the fx markets, i am saying the bank of england condoned it. What does this mean for the legal cases . Preks obviously, it could undermine the investigation. We have not gotten the date of the probe and the u. K. Yet. Line betweenin market practice and what could be manipulative. Could potentially undermine the investigation and put pressure on regulators to come to conclusions more quickly. What do we know about the investigation so far . Saying wes are had martin wheatley, the chief executive of the fca, saying he does not expect anything until 2015. In light of this investigation, they will pressure the government to come to conclusions more quickly. We will leave it there. Ongoing. There has been another guilty verdict connected to the welcome back to the pulse in london. Capital. Oma isw martello mart im francine lacqua. These are the top stories. Mark mobius says the selloff the eighth person to have worked in for steve to be convicted of Insider Trading. It does not look like they have in emerging markets could continue. Close any cases against cohen the temple to chairman oversees 50 billion in developing nations. His outlook differs from jim himself. What does this mean for cohen . Oneil who says this week that it could mean that he is off the selloff has created a buying opportunity. Atu. S. Jobs data comes out the hook because the prosecutors never got martoma to plead. 1 30 uk time. He did not cooperate and tell prosecutors what happened during that july 20, 2008 call before they expect employers to have added twice as many workers in january than in december. They expect the Unemployment Rate to have held at 6. 7 . A bunch of sold manager wasc fund stakes in pharmaceutical companies and netted a 275 Million Dollar profit. You can look at this in two found guilty in the largest ways. You can say that this conviction Insider Trading case ever. Makes it more likely that martoma will cooperate or less this is the seventh conviction one by u. S. Prosecutors in their likely. My view is it makes it less probe of sac and its founder steve cohen. Likely that he is going to cooperate. The prosecution, they tried to martoma faces 20 years in prison. Put a brave face on this. Atare other big stories they talked about what they nailed him for. It is a little bit like talking bloomberg today. Bank of England Staff may have condoned practices at the heart about how you got al capones of a currency manipulation investigations. Said to have are accountant. They were always clearly going after steve cohen and right now, told currency traders that it they do not have been. Brought thertoma was not improper to share them pending customer orders with counterparts at other firms with answer sheet before the exam poor trading. More than once. He is free on bail until his sentencing. That will be the last chance that prosecutors will have to susie joins us now for more on the story. More bad news for the boe. Try and squeeze him. It is. Prosecutors not let yeah. They face the threat of them him enter a plea bargain to turn in cohen and give him a lighter being dragged into another scandal two years after they were criticized by lawmakers for not heeding warnings that libor sentence . They do not want to establish president that you can lose a i think they could face them conviction and gamble and be questions now. Libor was huge. Found guilty and then talk. They would not want to establish that precedent. More importantly, martomas this could be even bigger. How will this actually affects the inquiries being made . I think what well see is credibility as a witness will be pressure coming from government. A 5 trillion a day market. Tainted because the prosecution has done so much to tame him. They introduced evidence going today, governors back and finding he was expelled from Harvard Law School for governments are letting fixing some of his grades and investigators get on with changing a transcript. He changed bs to as. Investigations, but with the euro so away from conclusion, i think this meeting could one of the classes he changed, actually put pressure to come to conclusions more quickly. The middle law. The defender in criminal law. This case and you have got the a great little side story on boe having had thsese that one. Here is what else is on our meetings, how do you change the radar. Statoil is the latest Big Oil Company to take a hit on its nature of the investigation and bottom line. How are prosecutors looking at it . Why are they going to speed things up . Norways Largest Energy company i think there will be a said profit slid 27 in the Fourth Quarter after profit pressure to speed things up. Whether in reality that can fell. Happen, we will have to see. The point is that it undermines the investigation. A thin line between market profits rose 23 at our salami tell arcelormittal. Practice and manipulation. A are trying to decide whether that line was crossed. The fact the boe seems to the company is trying to recover from an industrywide slump by condone these practices, raises questions. Closing plants. Thank you so much for all of best. The latest on the boe. Allhe u. S. Is banning u. S. Liquids, gels, and aerosols or carryon luggage on flights lawmakers must criminal today to between the u. S. And russia. Find votes to raise the debt ceiling. Congress extended the barn authorities are tightening security of the Winter Olympics get underway. Limit in october. The restrictions follow an advisory warning that terrorists it is scheduled to expire today. Might hide bombmaking materials hans nichols knows a few things in toothpaste tubes. About this. Walk us through what happens coming up, keeping the today, the procedure. Procedure is john spotlight on sochi. Ready or not, russia welcomes the world to the Winter Olympics. The games are the most expensive boehner does not have the votes. Winter games in history, was he does not have a plan. This is a feeling, shutdown that does not mean they will be a success. Find out why our next guest says coming up to the limit in three sochi will be remembered for all years. Now there is a sense that neither side really wants to the wrong reasons. Have a fight on this at this particular moment. John boehner has hinted that he wants to attach something. Of capitolarlance hill, he wants to send a bill to the senate that is not clean. What the senate is demanding is a clean bill. We are are great about whether or not you will have some extraneous issue attached to the debt ceiling. John boehner has signaled it is going to pass. The concern this time, they will cut it to close because after tomorrow we go into extraordinary measures. They will cut it to close. Markets will react, and they will fumble this one when no one really seems to be in the fight. In the past, they wanted this fight. No one wants to fight this time. They need to figure out how to get across the finish line. Yes. So hans, how likely is it that we get a done deal . Day, veryr the next little. Likely it will happen sometime in the next week. So possibly not today but something to keep a very close eye. Thank you so much. Now in 20 minutes it is surveillance. Just had a fascinating conversation with the former director of the cia and nsa talking about Cyber Security and sochi. Sochi figuring in your program today. We will look at the olympics. They begin here. A lot of Interesting Articles coming out of the United States on the american appetite for the sochi olympics. The athletes are there. I saw one article last night about the interest in americans and traveling by airline to sochi. That seemed to be diminished. But we will see as nbc begins their covers in the United States. Bloomberg will have our full team there as well. We are looking at jobs day today in the United States. I know you will have that at 1 30 your utimetime. Stephen roach will join us of yale university. We will talk tof his great caution. His new book out on china. S will joinleb at ub us. Capital me, with rbc markets. We will talk not only about the markets but critically, we will about anon golub american disease and that is Share Buybacks. Apple last night stunning that apple will take a 14 million Share Buyback in the last couple weeks. That is front and center this morning. I am looking for to that good morning, everybody. Conversation because just like welcome back. You are watching the pulse. Shareholder activism, that kind of that crosses over to europe a ready or not, russia is couple of months afterwards. Less Shareholder Activism is welcoming the world to the most out there, Cristina Alesci will expensive Winter Olympics in history. The official Opening Ceremony join us this morning, but far mo kicks off at 20 14 local time. Seemss just every company the games can be remembered for all the wrong reason according to be saying, what do we do with the cash and they are delivering to our next guest. It back to shareholders. Interesting. Thank you so much. Tom keene with surveillance. A Constitutional Court is essentially, sochi was bid for questioning the ecbs bond to give russia a better standing on the International Stage and buying plan. Bring the image of russia in the the court of justice to rule on international community. The legitimacy of the program. In your mind, it achieves the jon ferro joins us. Opposite. Program whicht few hours before the Opening Ceremony, all of the Media Coverage is doing what is at the heart of mary or drag russia did not want. His promise that he will do its was an opportunity for whatever it takes to save the euro. Russia to dispel some of the stereotypes that russian the Constitutional Court in germany has said that we think officials and private citizens it is illegal but we will let get upset about. I wanted to show that russia is the court of justice have the final say. The core is whether the it not a backward, inefficient, is the ecbs job and whether corrupt, and dangerous country where wild animals roam the streets, but all of the coverage they are able to go out and buy we have seen is confirming the government bonds. That is the issue. Stereotypes. They tried to sidestep that by saying they would do it in the secondary market. That does not play well, but they cannot monetize Government Debt in the eurozone. The Constitutional Court has challenged the unlimited bond it is slightly frivolous. Buying plan. This has been hanging over this no one is getting hurt as a plan for a number of months. Result of this and no one ones now, on the face of it, this is reputation is extremely a negative story for the euro. Tarnished. The more serious threat comes but it is actually positive along security. Because it kicks to the can the can to the court of justice. Any olympics we can remember, the Media Coverage is who is more likely to have this the rubberstamp . Always about predictions of the germans or the eu . Disaster, whether it is Goldman Sachs says that this terrorism, infrastructure, reduces the risk. This is europositive. Everything is supposed to be going wrong. At the last minute, the organizer pulled it out of the hat. What is different about russia . It helped politicize the response of the ecb to the venuee seen the immediate crisis across the eurozone. On top of that, how constrained areas, the infrastructure has not been completed. The ecb are to respond to any there are Serious Problems with accommodating the athletes. Asic in places. Potential financial crisis . Q. E. Started in the u. S. All of the people coming to sochi, the volunteers brought in when did it start in the uk . By russia, the media, they question the legality of a International Visitors arriving with Hotel Bookings for rooms bond buying plan in the eurozone. Months ago and the room is not the German Top Court can say, yet built. The games are being held in such proximity to parts of the world we do not agree with that but it depends on what the European High Court says. Details expressed doubts which are so very dangerous that say western governments about legality from a measure of 62. Straightforwardly to the citizens, do not go there. They are doubting the legality do the russians get it . Of it, but look, it has to be said on the other side of things do they understand the damage as well this is a big tom a being done . Some do. Big decision. Big decision. There is a wide range of reactions from russian officials im not sure this. Ago,u said that 18 months and private citizens to the Media Coverage. Welltraveled this would have been huge. But if something happens with russians who understand how the greece, a political crisis russian image plays abroad are holding their heads in despair at some of the mistakes that coming up in the next 12 months have been made in pr terms. And the omt has this massive others are outraged at what they question over its bill, that is the the bias of not a good place to be. 18 months ago this would have International Media that are focusing only on negative stories. Other russians are just been used bemused. Caused, this would have been enormous panic. You have seen the Market Reaction. Its eurozone positive. View,e official point of it is turning out to be a very different story. Look at portugal and ireland. The deputy prime minister, who has been working very hard yes, i take your point. Countering some of the negative but it potentially reduces the media headlines, but unfortunately, each time he safety net, but nevertheless, we opens his mouth, it looks like he wages his foot further in. Are not in the situation we were 18 months ago. On the gayrights issue, he says were are not talking about breaking up anymore. That threat may still be homosexuals can come to sochi. There, but we are not talking on the hotel story, he says we about it right now. It comes than a week where we know the germans are fixing are thinking about making those stories because the progress and theyre talking surveillance cameras in the about and in the sterilization showers have told us. Of the s p program. Look, q. E. , and monetizing i am not sure how much further he wages put into his Government Debt is a massive mouth. I am looking forward to the next issue in the eurozone and it is time he gets in front of a microphone. Not going away anytime soon. Jon, thank you so much. To Market Reaction. All of this is bad, but it could manus cranny. Get worse. This is all very well talking the biggest threat hanging over these games is the security threat. Re fairly close about the germans passing this book along, but a small issue of calling them an active war zone is an is may be an emerging markets may have a bit of an impact. Trump anything to do with that overstatement, but they are if you do not have a backstop, extremely dangerous. The whole issue becomes a areical security measures different story. Equities have lifted themselves off the ground. Quite impressive. Of course, there are less Industrial Production in the security measures as well, some u. K. Missed estimates. Of which International Visitors 15 of the economy. May not be aware of, like the fact that their phone and Internet Usage will be closely monitored. Manufacturing is 10 of our ofdoes beg the question economy and the u. K. A miss in terms of the euros whether that depletes security coverage of other vulnerable points across russia because it reaction, this is a does not have to be an attack in sochi. Manifestation of what you are it could be an attack tied to talking about is the very the sochi olympics at this time. Initial bit of a drop. I would not accept the call of the United States has made islam. A slump. Reasonable precautions. 1 4 of 1 , but we have come back from that. The fact that explosives could there is no doubt. Be carried in toothpaste tubes. We have an obvious reaction to its still going to be all about that now. Liquids and gels. Whether we are at the pause moment in emerging markets or not. America has a history of as mark mobius is one of the security incidents at the games in atlanta. Other stories and david bloom. It is a logical, or aggressive sive reactionrogres the rand would strengthen to around 10. 4 by the end of 2014. That we are seeing. There is a limited amount that debate about whether that the u. S. Or any foreign Security Services could do given the extent of the cooperation oneill will have an opportunity with russian authorities and despite the fact that russian to buy into emerging markets or mark mobius is correct. Counterterrorism professionals are quite proud. There is only one number in town. It is the unemployment numbers. And the weather patterns fall in the end, it comes down to out of the numbers, 180,000 is what the Russian Security forces what we are looking for. On the ground are capable of. We will leave that one the s p futures indicated at hanging. Wait and see. Thank you very much indeed. 1. 771, up 1 3 of 1 . B debate,hole ec francine, back to you. Now lets get you some company news. One point 6 billion goldmans is saying that the ecb need not delay. Plan to buy out local partners in its indian unit has won they should act in march to make money and volatility in money government approval. Markets easier. Thank you. The cabinet cleared the Company Coming up, its u. S. Djobs to buy the stake that it did not already control. India is vodafones biggest customer base. Day. Eot is sticking to a 3 we will give you a preview. We will be joined by westpacs billion stock sale. It is negotiating despite senior economist and our markets criticism from investors, editor michael mckee. Including members of the controlling family. They are in talks to sell a stake to fund a reorganization. A group led by chinas minh me tals is said to be in talks to buy a project in peru. An agreement could be announced as early as this month. The deal is subject to Chinese Government approval. Still to come, america drops the fbomb. Bad language by a top diplomat rattles language with the eu over a top political crisis. Welcome back. You are watching the pulse. In the United States. Economists predict twice as many new jobs added in january from the month before which was december. For more, lets welcome westpa s s senior economist and michael mckee. Lets start with you. There is going to be a weather impact. And you have seasonal adjustments that we need to think about. The spread is pretty big, isnt it . It is enormous. Welcome back. Time for tonight hotshots. The working assumption on wall ship torn ingo street is that decembers payroll figures were just wrong. The bad weather cap so many half off the coast of france. People at home. It was heading to nearby port to the numbers could not possibly load up with cargo when its be right. Engine broke down. A lot of people are expecting helicopter evacuated today that will be revised away. And january will refer to last falls trend hiring. The 12man group. The figure skating team we have seen a lot of soft data competing competition is one of 12 new events that have been in other parts of the economy, added to this years winter housing and manufacturing data. Olympics. If you think december was dead, individuals and couples perform generate was worse. Ie for ane and v the coldest winter months and three years and four times the normal amount of snow. We could see a weather effects for this month. Overall team score. Russia was at the top of the nobody knows. The other big question is what scoreboard at the end of day one. And mens and womens slope happens with the Unemployment Rate, given the speed with which it is declining these think the style competitors put on an economy was on fire. Equally impressive show. For the crowdut but mostly it is people leaving the labor force. Of supporters. The official Opening Ceremony is there is a big debate about whether or not it is baby due to take place later today. 4 30 p. M. London time. Boomers retiring or people are so discouraged about the 14 wereught it was possibility of finding a job they are dropping out. That is obligated by the fact that the congress here declined some strange time like that. To renewed longterm i will get back to you on that one. Unemployment benefits in january. Rex manus cranny at the touchscreen. To get benefits, you have to say a little bit of a data feed. You are looking for a job. Equity markets are lower. If one million say they are no we started a spirited attempt on longer looking because they cannot get benefits, the Unemployment Rate could plunge. The upside and then we got the a lot of confusion. Hown all seriousness, news that the germans are going to pass the buck to the europeans in terms of ruling on serious should we take this . It will be hard to unpack do whatever it takes to save a euro. Financials. What is going on. There is one more thing. The annual adjustment, the i am going to back away from the benchmark adjustments to the data. Survey we get additional jobs either subtracted or added to having a little bit of a data the total for the past year. Feed at the moment all my european. This is the critical portion of plus, they change the population the days reading today. Estimates in terms of the figures they used. Onwe could have a lot of u. S. Equity futures indicating slightly higher at the moment. The euro, on the back of the information that came out that comparable figures. You cannot say december matches up to january. The german Constitutional Court is going to send it to the it will be hard for people to europeans, we jumped down on the figure out what has gone with eurodollar. The labor market. James, lets bring you in. At the end of on the move, james sharp joining us from west francine talked to one of her guests and said it was a nonissue. Pac. Mike just ran through a whole see how that plays out. Back to you guys. List of reasons why this number thank you so much. Is unfathomable. This number in particular is going to be hard to deal with. Youre right. We get backcome, theary payrolls is the into our big focus of the sochi olympics. Will the games act as a celebration of russ and bete noire of economist resurgent russian resurgence nightmares. Or will they fail . It is the worst guide to the all of that later this hour. U. S. Labor market that there is but it is the one that the and just a reminder, you can market focuses on the most. The january one is coming from a follow both of us on twitter. We will see you in a couple of minutes. Starting point that we do not know, because the bls dont prerelease the revised figures. The weather effects will be difficult, too. There may have been a weather affect in december. People exaggerate the. Extent of the weather because you have to be off the job for the full payroll period. People were back at work in january and then there was another affect in the january numbers. It wont show up as a drag on the figure. You cannot tell from the payroll the household the survey, you cannot tell if people were away from work because of the whether or not. It is very much an uninterpretable number. Our forecast is 1. 70. If we are right, is pure luck. What do you think the market will react to . How much of a deviation from the consensus will be necessary to get some sort of Market Reaction . It depends on the revisions. You mentioned earlier that the december number, 74,000, was just wrong in terms of the way markets are viewing it. I think the november number was just wrong in that it was so strong. And december, rather athan havig number, december was correcting for that solid november number. It may be that some of that gets sorted out for the seasonal factors. What are markets going to react to . I think they will take it with a grain of salt. There will be a reaction on the basis of faulty analysis because you will not be able to get to the bottom of it. Youll have to wait until we have had a decent look at the numbers before we come up with any understanding of the underlying dynamic in the labor market. Change geras. Gears. To change i want to get your reaction to the decision by the Constitutional Court in germany to refer its take on whether or not the Bond Buying Program is passing the buck. The Constitutional Court seems to view it as a negative, but nevertheless, the markets are going nah. It does not matter. Omts are never going to be used. Even though the administrations there would not agree to the conditionality, yields have fallen with omts in place. Even portuguese bond yields have fallen below five percent in the last month. There is investor complicity at play. Investors know that omt is never going to be used. It is a sideshow. The big bazooka that is there to give them a bit of comfort, to demonstrate that draghi is doing whatever it takes and markets are giving them the benefit of the doubt that if some future back. Come issue crops up to derail this uk data is breaking. Slow mending of the european sovereign debt crisis, then draghi will fix it, because he be excited. Be, because it is is around for another five years. P you wonder what he will do below estimates. With the inflation problem. A manufacturing output of. 3 . Weaker than expected. He has effectively suspended the government may be it. By saying you have to look at excited. The reasons for it. It may help shore up the pound and convince the markets we are the Program Countries of spain and portugal and ireland and not ready to raise rates yet. Greece holding down inflation. We will look at howdollar. Pounddollar. We are down at session lows they have to become more competitive by lowering cost structures. Try to aim Monetary Policy as 1. 6311. Addressing that issue would be plain wrong. The direction of travel of late a serious risk of has become more confusing, i would argue. Broadbased deflation coming through, yes, then it is the ecbs responsibility to act. Youre getting some pressure beginning to come through on the pound. If you want to free up markets, nevertheless, the latest data little bit of a disappointment. Now it is time for todays then theyv have to act. Top headlines. They should not try to drive Inflation Higher in europe i the sell off in emerging markets using Monetary Policy when it is being held down by the necessary can continue. Adjustments for those Program Countries. I made that point several times. The templeton chairman oversees run the theyll 50 billion dollars in developing nations. His outlook differs from jim oneil who says it creates a buying opportunity. Soc fund manager matthew number on the basis that it is a natural part of the reform martoma was found guilty of process. James shugg, thanks indeed. Charges and the largest Insider Trading case ever. This is the seventh conviction back in two. One by u. S. Prosecutors. Martoma faces as many as 20 years in prison on the most serious counts. Show that jobay growth picked up last month from the slowest pace in three years. Economists predict that january payrolls rose by 180,000. The Unemployment Rate is expected to remain at six percent. Right. Jonathan ferro joins us more joins us with more. The spread is pretty big. Spread is massive. Sogen, 270k. That is a big call, 270,000. Talking about comparing it to pin the tail on the donkey. This is a children game here you put a blindfold on and after pin the tail on where the donkeys tail will be. This is kind of the same thing. It is a hard thing to judge. Then ms. In december. That miss in december. The most important data in the world. It is backward looking and eight is an indication of market sentiment. Bottom line is that the u. S. Economy is 70 german by consumer spending. If you want to spend, you need a job. Payroll numbers are always important. Look, this is still a big number. For me, you have to look at unemployment as well because were getting ever closer to that 6. 5 threshold. A couple of banks out there are looking forward to 6. 5 right now. The problem is you compare the u. S. Unemployment rate to the u. S. Precipitation Participation Rate and look at it. Lows we have not seen since the 1970s. If you can pair it with the opposite direction. It is incredible. You can add several Percentage Points onto the Unemployment Rate. Heres the problem for janet leigh ellen yellen. This is a lady who wants to put unemployment at the center of centralbank policy. And now they have got to find a new metric, because unemployment is not the one. When she starts in march, they will have to tweak their communication. They will have to tweak their communication. Talking of communication, lets look at a company that had a bed 24 hours. Linkedin shares fell. The currency markets. The current story of the day is it is set for a fifth quarter of eurodollar. Slowing growth. Because 42 sales growth and germany will hand responsibility to the european sounds pretty good. Not so good when you are court of justice. Since then, we are trending back down toward session lows. Comparing it to 70 sales growth that linked in had last year. The name of the game now is nonfarm payrolls. Hans nichols is back with a they are forecasting a slowing look at what you need to know for the rest of the trading day. So theres u. S. Jobs, but there in growth Going Forward in terms of sales. Is also sochi. Therefore, the euphoria we have we have thehi seen built into the share price which has credible since they issued back in 2011, is starting Opening Ceremony tonight. To die down a bit. It will be a sense of drama on whether or not the russians and this exponential growth we have seen in Tech Companies, the Vladimir Putins government can likes of twitter and linked in, pull this off. These games are stoked with so many geopolitical consequences. They cannot continue it. There is terrorism. But there is also a question of, these companies are getting bigger and bigger. It is harder to keep on was this 51 billion project expanding. Linkedin is pushing into mobile. Worth it, and can rush to pull it off in a way that will be one they are saying we might be able of the most exciting aspects of to have employees in the the olympics. Bluecollar area. I know you are big into bath they are not just whitecollar iathletes. B workers. It could be skills trades guy, i am worried plumbers, carpenters. They are getting in on m a. Milliont spent 120 that i know less about the unaccompanied called brite. Opening ceremony or even the athletes than the that toilets at sochi. They cannot keep on getting this but that is a whole other conversation. Growth we are used to. Lets talk about the debt theyre are starting to see the ceiling. Stock price reflects that. Isnt looking to expand nice transition. Outside the u. S. . Here every few now they are looking at china. That is one way of convincing months. We had the debt ceiling today in investors that they will make the states. They have to go to extraordinary more revenue in the future. You are right. Measures. Lets see if they can come that is one way the chief together for a deal. That is it for the pulse. Executive is desperately trying keep it here on bloomberg tv. To support his companys evaluation, because china is have a great afternoon, everyone. Really quite a phenomenon for linkedin, because they are the thereig tech giant out that is actually not blocke din. D in china. It has 4 million users. It is a key for expansion, so said the chief executive. Saying look at the potential of china. It is four times the size of the u. S. Worldsive of the knowledge workers and students live in china. This is why they need to get penetration. This is why they hired a shen, this isrek why they have linked up their account with a profile on a very popular app called wechat in china. They are trying to ramp up their overall exposure in china, because it fits rather nicely with conditions in china at the moment. They change jobs very quickly. They need employers to be hunting out new employees. They need employees to pop maybe goingiptions, up to premium because they turnover job so quickly. 15 of all employees change jobs last year. To change jobs every two to three years. That is much faster than the u. K. And much mosfaster than the u. S. That a winwin situation they can operate in china. How can they scale that, and can they continue to grow internationally . They boosted sales 54 internationally last quarter. At the moment, a bit of a disappointment about the forecast for the future. The very latest from some of these companies that are struggling to grow revenue. Disappointing investors. Usefuledin could prove a tool for one in five workers in switzerland who are foreign. There is a weekend vote on whether to restrict immigration. Expats could be forced to work elsewhere. What could it mean for business in switzerland . It would mean a renegotiation of a treaty between the eu and switzerland. For some Companies Like the pharmaceutical industry, like the healthcare industry, they would have a labor shortage. You look at the r d unit at roche, 50 of their workers are foreignborn. You have seen an explosion in this is bloomberg surveillance. Switzerland, for more workers workers foreign born today, washington is fixated on the debt ceiling. Republicans and democrats a coming in. Parlay for continued employment they are close to having 25 of after the mental and midterm their working population being elections. Arecook observes showares from outside of switzerland. The problem with this referendum and we do not know if it is going to pass the latest on sale. Polling is that 43 of the swiss he purchases a 14 billion in plan to vote. Apple stock. 50 plan to vote against it. Money doing xl spreadsheets. The morning, everyone. This is bloomberg but that is from the end of surveillance. We are live from our world january, and it is trending in the direction of voting for it. We will see how this comes down headquarters in new york. It is friday, february 7. On sunday. It is going to be a challenge im tom keene. Join me, scarlet fu, cristina for swiss industry to marshal their forces and to get turnout. Alesci. A lot going on. You look at the household names were going to start in switzerland. They are founded by foreigners. Allch, and nestle, overnight because china resumes trading after five days of being awful for the lunar new year, so foreigners. You test between the peoples china back in the markets. 8 30 a. M. Of course we have jobs party which is pushing this referendum and Industry Groups report, complicated report that are on the other side. We will find out sunday evening. There, we will have more on that very much, indeed. In the hour. Other events, earnings a bit of a snoozer, the only thing we will know is cigna. Also lg launches its new curved looking forward to that coverage monday. We will see what happens. Hans nichols. And intercepted phone call smartphone. Between top u. S. To clements that is the new thing to have a curved phone . The diplomats has lifted curtain on the u. S. Role in ukraine and is adding pressure to the russianamerican relationship. Ryan chilcote has more on the story. It is a hot conversation. Very intriguing. This telephone conversation allegedly between a u. S. Deputy secretary of state and the American Ambassador to ukraine was posted on youtube earlier this week. In it the two diplomats appeared to be discussing one, their plans for ukraine, what they want to do that, dismissing at one point the European Union and european diplomacy in ukraine. One of the diplomats using an expletive to describe the eu. And two discussing russias reaction or likely reaction to the events on the ground. Appearingust really to be intimately involved in what is going on on the ground in ukraine and managing it. Have a listen. Whoshink hes the guy got the governing experience. He needs to is be talking to them four times a week. You know. He is think going in, going to be at that level working for yachts and it ya tsunok. Do you want us to try to set up a call with him . The impression you get is that u. S. Officials are stage managing the opposition demonstrations in ukraine. U. S. Officials have not confirmed that this was indeed a conversation between two diplomats but they are not denying it. The u. S. Has called the European Union to apologize for those disparaging comments, which we could not include because they do involve expletives. Not very diplomatic diplomats. One of the things they are doing is pointing the finger at russia, saying, it is interesting that this conversation was posted anonymously on youtube and first a seniory the aide of russian official, saying this is a low blow from the russians to be listening in on american diplomats and posting it. This speaks to the poor nature right now of americanrussian relations. Also, while ukraine is not a point, it is ais point of friction as the games begin. A Senior Advisor to the russian. S. Isnt said the u funding the opposition, giving them weapons. Finding them to the tune of 20 million a week. So none of this is hospitable or friendly chat going into the games, and certainly something we will have to keep our eye on. Think you very much, indeed. Ryan chilcote joining us on an alternative view of eurussian relations. Still to come, the stakes are high at sochi. Will the Winter Olympics in russia be president putins tribe for failure . We will discuss that at the top of the next hour with the former director of both the cia and nsa. So, russia has welcomed the world to the Winter Olympics. Sochis official Opening Ceremony is tonight. How will the most expensive games in history impact the countrys economy . Lets welcome the managing director at bcs. Thank you for joining us. I guess when we found out we were hosting the olympics, putin wouldve said this is a great opportunity for me to showcase what russia is capable of. About badonly publicity. We know more about the bad hotel experiences, about the expropriation of people within the sochi region. Then whos going to open the ceremony. Yes. It is an interesting point. This is not really about a financialeconomic exercise. Measure theo olympic is on return on investment, clearly, russia will not see a meaningful return on this investment in the financial sense. This is investor sentiment. I do not think this has much relevance to investor sentiment. If you look back to the olympics in china, 2008, into the runabout that we had, it was kind of a disastrous p. R. Story. Following up to the torch relay. Afterwards is if the events were successful, if they were harper lee managed and exciting. Hopefully, we will see the event successful and peaceful and everyone will remember that. Let me cut you off there and we will go back to the possible scenario. You do not think all of the bad an investorake think that the rule of law in that country is so far away from what we have in the west, they will think twice before putting 100 million in the company. Sia,ritics of sochi and rus in the last few weeks on the currency wobble that we had, are trying to portray russia as reckless financially. Which is very far from the truth. Russia has been prudent in the way they have managed their financials. We can have a lot of criticism towards putin. And a lot of it will be fair, but you cannot really portray his administration as reckless financially. Russia is very robust if fragile in terms of how they have been managing their financials since the 2008 crisis, but all the way since the valuation of the collapse of the ruble. I would be more worried about bribes more than the reckless financials. Its true. It is difficult to swipe this underneath the rug. The overriding costs in sochi were tremendous. The numbers ive seen look at the overruns and olympic of 2. 5 times. In sochi biz asia america, it was four times. This was not vancouver, london,. R tokyo yes, russia does have a corruption issue. It is clear. Most developing economies have corruption issues. Again, you can look at china, turkey, which is in the on this subject. That is something you need to bear in mind when you invest in emerging economies. Talk about the ruble. We have seen a Fair Movement on it. It has been taking investors by surprise the violence. Wewhen we came into 2014, were expecting the ruble to evaluate. Devaluate. What is surprising is the pace of the move and it is more like a case of mistaken identity. Russia, this whole sell off is external and in, russia should not be camped in. If you look at russias current account deficit shortterm return debt, russia by and large is very resilient towards those vulnerabilities. Reserves covers 70 years worth of external financing needs. If you look at turkey or brazil, which is similar to russia, you wo, but not year or tow much more in terms of their ability to finance themselves. The ruble should not be have sold off. What is your biggest concern . There is a lot of income equality, which leads to people taking to the streets. There are a lot of things that are still very concerning for investors. What is your top one . The first one, the biggest vulnerability russia has is commodities. Oil and gas. Russia is not vulnerable to external financing needs. It is probable to oil and gas. It is its only pillar of growth. Years,last few surprisingly, the pillar of growth was household spending. Consumer credit was growing north of 30 . That was an anomaly, a reflection of the weakness on the exporting side. If you are willing to take into an account, the collapse in oil and gas prices, the surplus that russia has turned into a deficit. That is something that has to take lace. There are reforms that russia needs to embark on. What is your second biggest concern . The reform side. Russia had a very dysfunctional financial sector. They have been embarking on quite dramatic reforms on the financial side. Very successful ones. But we need to continue to do that. The next reform that russia has to do is probably on taxation on oil and gas. We started big the interview by saying that sochi will not be a game changer financially for russia but it puts it on the map. It is market perception, investor perception. Case scenario, if everything goes smoothly and we have great Winter Olympics, will investors start looking at it a little bit differently . China, we also had bad press in the beginning, but if it goes off smoothly for the weeks, then people say, that is what they remember. The tensions between russia and the west are ingrained. It will not be swept aside by anything in the next few years. You can manage that tension. But a successful olympics, and we have to 2018 world cup in moscow as well coming up, what a successful event will definitely be some kind of a sweetener to this painful runup to the olympics. Thank you so much. The managing director at bcs financial group. Still to come, we will keep the spotlight on sochi and talk about security risks with a fourstar general, Michael Hayden. Aside from being a former fourstar general, he is the director of the cia and nsa. Should be an interesting conversation. Welcome back. You are watching the pulse. Stocks coming back a little bit but clearly we are in the period before the payroll number of little bit later on. The real action this morning has been in the Foreign Exchange market. Lets take a look at euro dollar. Earlier on, the Constitutional Court in germany basically said it disagreed with the omc programs that have been the cornerstone of Mario Draghis case for saying he can do whatever it takes to save the euro. Thever, they kicked it onto European Court of justice. If they decide the omc is legal, then they will have another look at it. A bit convoluted. The market wouldve reacted to this 18 months ago. This morning, a little blip. And we have that little thing called the u. S. Jobs report. That will give us an indication of what the fed may do. It is an important figure, because it is linked to consumption and how rich the consumer feels. And it will also be a key indicator for the fed moving forward from here which ultimately is what is having a big impact on what is happening with emerging markets. We have a cracking second hour of the pulse. On bloomberg radio, first word is up next. For our viewers, we will talk about sochi and security. General Michael Hayden will be joining us. Plus, it is jobs day. Our guest will join us from westpac. We will see you in just a moment. Russia welcomes the world to the Winter Olympics in sochi, the most expensive winter games to be remembered for the wrong reasons. The u. S. Ramps up Airline Security is on flight to and from russia. It bans liquids on carryon luggage. We will be live with the former director of the cia and nsa, general Michael Hayden, to talk olympic security and nsa troubles. America drops the f bomb. Bad language rattles relations with the eu over ukraines political crisis. Good morning to our viewers in europe. Good evening to those in asia and a warm welcome to those just waking up in the United States. Im guy johnson. I am francine lacqua. This is the pulse. An alleged intercepted phone call between top diplomats has lifted the curtain on the u. S. In ukraine and adding pressure to the russianamerican relationship as the games get underway. Ryan chilcote turns us. Telephone conversation allegedly between the American Ambassador of the ukraine and one of the u. S. Assistant secretaries of state was posted on youtube earlier this week. The diplomats appear to disparage the European Union, the top diplomat on the call using a four x put it to describe the expletive to describe the eu. Possibleussing the reaction of russia. Finally, both diplomats appear to be intimately involved in what is going on in ukraine, almost stage managing what is going on there. Have a listen. Yatske is the guy that has the economic and governing is. Rook on needs is tonybo the outside. He needs to talk to them four times a week. Hes going to be, at that level, working for it is not going to work. I think that is right. Do you want us to set up a call with him . Now the u. S. Has not publicly confirmed that this was indeed the two said diplomats. Privately, however, they have confirmed that this was the diplomats and publicly confirmed that one of them called the European Union to apologize. What else to the u. S. Have to say about that phone call . Heres the thing. It was anonymously posted on facebook. Got picked up later in the week by everyone. The United States is pointing the figure at russia, pointing out that the first person to tweet the link to this posting on youtube was an aide to a senior russian official, basically saying, suggesting the russians are both listening to american diplomats conversations and using it for their own political gain. I does towo things. It underscores the poor state of russianamerican relations and secondly, kind of really illustrates that ukraine a battleground, not a proxy war, what a battleground between russia and the United States. It was a Senior Adviser to president putin came out and said, the u. S. Is spending 20 million a week to arm the opposition. Quite an allegation, saying that the u. S. Should stay out of ukraine. The very latest on this telephone call. Controversial. Now the sochi Opening Ceremony kicks off later this evening. The u. S. Is tightening Airline Security. Liquids, gels, and aerosols of on size are banned flights between the United States and russia. Here for more is our airline reporter. We learned a little bit about this yesterday, rob, and i guess this is the logical extension, the next step is to ban all liquids on carryons. Absolutely. You have to keep in mind that the russians, for them, the risk the threat to aviation is not new. The issues they have had with terrorist actions in their country, especially if you look at the threats from the caucasus, they have targeted aircraft before. This should not come as a huge surprise. In terms of the next extension of the story, what happens next . Is this going to be a temporary ban while the lyrics are on or will it stay . It is hard to say. There is an indication that this is a reaction to something. The u. S. Has suggested there have been they had picked up threat warnings that had prompted this. So one could only surmise that once the big event is done, these things will be eased. Thank you so much. Our aviation reporter. For more on security at sochi, we are joined by Michael Hayden. He is a former director of the cia and nsa. And a fourstar general. Good morning. A number of questions come to mind this morning. Lets start off with the conversation, the security situation. Wethis is fairly standard, receive chatter about a threat. The next step is to make these kinds of moves. Yeah. And perhaps out of an excess of caution, but in circumstances like this, it is hard to define access. So lets be safe. This is a high visibility event, the kind of iconic target the terrorists like to go after. So lets be extra cautious. It seems that the threat of sochi is higher than in previous games because, of course, also, the domesticlyrical situation. How do you write the situation . You have the entire environment and you have to sit back and ask, what was the ioc thinking in terms of putting these games in this region of the world with so many unsettled things all around it . That said, although the russians have not met the usual standard of International Cooperation in Intelligence Matters getting to the games, russians are quite even heavyhanded, at local security. I actually think the games and the immediate environs are safe. It could be made safer with the standard practice. And northernathens italy. We had International Fusion cells where information would come together from around the world. The russians have not been enthusiastic about that. Securityll the authorities in the United States be monitoring and dealing with the situation on the ground in sochi . It is going to be hard to monitor the situation on the ground. You will have to be reliant on the local service. That would have been the Good Alliance earlier on with the russians taking responsibility for local security and other services, particularly ours and the british, which are global, maybe providing that second, third, and fourth ring of warning. One hopes we have been able to work that through, but has not done as natural at in past games. What i was surprised about was the u. S. Ban on carrying liquid to sochi is the fact they mentioned toothpaste. This seems to me something that is very specific. Does it stem from a specific threat on toothpaste . I have to give you i dont know. I am out of government. From the outside looking in, it seems to suggest very strongly that they have specific information. Now, it may not be that all high confidence information, but they have something specific. Of caution,n excess this is not overburdening of the traveling population. Lets do this. Important. General, it is rumored that all communications for people arriving in sochi are being monitored. Is that normal practice . Is that a good or bad thing . I ts a thing. Ok. And its reflective of the political cultures of the countries that host different kinds of games. Probably would have been impossible to do here for the summer games. You not think it would have been done in utah. But the russians have an entirely different view. So i would make the assumption that if you are going to sochi, you are going to be intercepted voice eand and data. As much is that rubs a nerve in terms of securities of the games, maybe that will as something. Should we expect the same from other large countries may similar where Civil Liberties are more relaxed . , Security Services get to do with their political cultures think is appropriate and lawful. That is the way gchq works here. And despite the run of stories we have seen in the press, nsa is quite constrained. I would make the case that they have more oversight and more constrained than almost any other Security Services around the world. Occurrence, natural other services are a bit more aggressive. A couple of questions. Can i just first of all get your, your comments on the release tape . Is anything sacred anymore . Is this something we have to get used to . I do not mean to make light of it, but i have to tell you two thoughts came to mind when i was watching in the green room your replaying the tape. Noeone, as an american and a friend of gchq, i am glad the rest of the world is reminded that not only the americans and british could intercept medications. Thamutations. Communications. As an american, im glad to see that we are paying attention to the crisis in ukraine. Can i ask you one last qu estion . We seem to find yourselves in a situation where increasingly u. S. Businesses been affected by the situation surrounding me nsa the nsa. We have a business audience here. When you travel around the world and talk to people, your sense of how much damage has been done on a commercial level. A specific example. If you are an american based Cloud Service provider, is the Playing Field level competing for contracts outside the United States . The fact is, no. It is not level. What i try to tell folks is that american businesses being unfairly singled out by these snowden revelations. All businesses everywhere in the world respond to their host governments demands for lawful information that those businesses possess. As a matter of fact, american businesses may actually be the subject of a lighter hand than most other businesses in most other countries. But that is not the popular story, and people are using what is out there in the Mainstream Press as an argument to make the Playing Field for american businesses very uneven. Ago, the french industry minister was saying that google could be expelled from france if they did not provide Data Services in france where they could be monitored. What does the u. S. Need to do, lobby . We all should lobby more, because of stuff like that, i will call it digital residency requirement, is the first step in renationalizing the global internet, which we all enjoyed, particularly business, your audience understands the fact that global, ubiquitous, free, democratic, accessible unityaary is a wonderful thing. These requirements are the first steps towards digital passports. I mean going online to identify yourself before you are allowed to enter or for citizens leave another nations domain. That is the destruction of the internet absolutely realistic. 3t was debated in dubai 1 months ago, december, 2012. That the itu, international telecommuting Telecommunications Union would take control of the internet and move it in the direction that the russians and chinese would like, which is creating boundaries and the cyber domain that we have become accustomed to in the physical domain. And the word for that is borders. But this will happen . What is the likelihood, and what is the likelihood of the u. S. Being the biggest losers . Voted majority at dubai in favor of this. They meet again in october in seoul. A byproduct of snowden revelations will be to energize those countries who want to break up the internet. And we could be on a road where the net as we have known it begins to go away. General, time beats us. Thank u very much, indeed, for your time. We will be back with him in just a couple minutes time. We have to pay a few bills and tell you what else is going on. Jobs day in the u. S. Will we see a pickup in payroll numbers or will extreme weather get in the way . What does it mean for markets and fed policy. All of that and much more coming up. Welcome to the pulse, live in london. Now we are back with our exclusive interview with general Michael Hayden, the former director of the cia and nsa. Our International Correspondent hans nichols joins us now as well. Hans, we have had a chance to chat to the general. In . Donot you jump a quick question to on that intercepted phone call. How did they get that . Were they talking over cell phones or is technology such that they can intercept a call from a landline to a landline, and who do you think is responsible for the interception . You are asking me to make things up because i do not have any of the facts, but let me speculate. You are a journalist now. Have some fun with it. Ok. Let me go with the Russian Services as the primary suspect here since they are the ones that would have the most interest in this and the release of the information most serbs russian purposes with regard to what we would call the physics of the intercept. You have to understand that any particular communication that goes in the air from a cell phone to a tower. From the tower it may go into the ground and come out of the ground and go to a satellite bounce and go back into the ground. Signal intelligence is very difficult. It is hard to say how this may have been done. I suspect it was pulled out of the air, but that is just a suspicion. Ok. That is a fairly informed suspicion. You do not think there is any possibility that the u. S. In fact leaked this themselves to sort of add urgency to what is happening in the ukraine . Im purely speculating but if were going to leak a conversation of our own diplomats, i think we wouldve cleaned up a few things. The language was entertaining to say the least. Fomr a european perspective, when the europeans are looking at it, you get the feeling that there is a certain feeling that grieved over how the situation has developed. But there has been this counter argument from the United States that says, of course, everybody does this. What validity is there that everybody has the skill set to do with the nsa does . Everyone has the intent to do what the nsa does. Not everyone has the skill set to do what nsa does. President obama was quite clear. He talked about countries complaining. Many of the countries who are complaining try to do the same thing. They are just not as good at it as we are. I think he said something along the lines of, i am not going to apologize for our competency in this area. I spent last weekend in germany at the security conference in munich. I was one, surprised at the depth of german feeling. Second, since i am an american, felt that some of their concerns were overblown. And number three, and this is the most important one, they were absolutely genuine. Not artificial. The germans i talked to were genuinely offended by learning this icon on. But this is one for the chancellor, what is the limit . If you have a head of state that does not seem to be risking any security concerns such as chancellor merkel, should be should she be off limits