Testimony. Cory johnson looks at microsoft strategy against the ipad mini. We begin with a bloomberg exclusive with russian Prime Minister dmitry medvedev. My colleague, Ryan Chilcote conducted the interview. He joins me now from moscow. Good evening. Good evening, mark. The primeminister minister and i sat down and he told me that the standoff between russia and the west could lead to another cold war. To put it simply, no one is happy about sanctions, since they are always a sign of tense relations. It could cause some unpleasantries for the country, but it is bad for economic relations come up with europe and with the United States. Lets be honest, those sanctions are a sharp knife for european business. The only ones who want sanctions are politicians, who used them to reinforce their convictions and demonstrate power. For example, president obama needs to Show Congress that russiansoesnt see amuck but if anything happens, they can hurt us. The situation is somehow different for europe. Speaking about president obama, because you were the art the author, the architect with president obama about the reset in relations, are you disappointed by how obama has handled this crisis . Yes, i believe president obama could do more politically in discussing those issues. Have had ad, loss of u. S. Russian relations. I believe the agreement was right. Im sorry that everything that has been achieved is now being eliminated by those decisions. We are basically approaching a second cold war that nobody needs. Why am i saying this . Because a competent politician knows how to make careful, subtle, wise, decisions, which i believe obama succeeded in for a while. Has not beenu. S. Doing that and the United States is one of the parties to suffer from this. Never a dull moment. The Russian Military says they have Just Launched an intercontinental ballistic missile. It was part of a test, but of course will add fuel to the fire to those who will say we are entering into another cold war. You were the Prime Minister say that they had these test launches all the time. Was this known by the white house or others around the world . That is something we should learn. If it wasnt, then it will definitely be seen as saber rattling, given everything going on in ukraine. Both visa and mastercard are considering leaving russia. What did the Prime Minister say about that . He was saying that he would like mastercard and visa to stay in russia. The background, as you said, is that both are thinking about leaving russia. They have about six weeks to make up their mind before they will have to spend hundreds of millions of dollars to change their operations if they want to stay. Is according to some russian legislation that has been introduced. Why . Go back to the first round of sanctions when we saw some russian banks targeted by the treasury. Effectively, that was when visa and mastercard declined to serve some of the credit card customers of those banks in this country. That raise eyebrows about the financial integrity of there being 3 Banking System and the integrity of their financial system. They said they would like collateral from both visa and mastercard before they go on. Saying heard the ceos at this point, the answer is, no, and hes taking about leaving. But we did hear comments from the Prime Minister saying that he would like to see highstakes not just from visa and othercard, but transactions that have been beat up by this. Ryan chilcote with his exclusive interview with russian Prime Minister dmitri medvedev. We can expectys Interest Rates to rise very slowly and not very far. The feds his view of exit strategy. Mike, what did you take away from this . Have pretty much locked into a fed taper starting to end sometime next year. Its not so much when they want to know, but how. Herybody watches him because is the center of the fed. He says slower and lower than in the past. Growth will be slower and inflation will be lower. And bank lending because of new regulations will be tighter than in past recoveries. Therefore, dudley says he sees the benchmark rate likely to be well below the 4. 25 the average level his store we when inflation was around two percent. Said that the old plan to stop reinvesting Mortgage Securities is now off the table. The problem is, markets might take that as a sign that tightening is imminent when it might not be. He said there will be considerable time between the end and the rising rate, but he also said that it dependent on jobs. It could come sooner than people think. If not, it could get pushed back. Act, theirey do primary target will be Interest Rates on reserves. And they will pay cash in exchange for lending securities for its balance sheet. As for the 4. 5 trillion balance sheet, they will likely let that run off as maturities securities mature. They will not sell off that the folio. That portfolio. How does he see the economy these days . He said the fed has been way too optimistic in its outlook for the economy and gdp. That said, he said he blames the figures on the severe winter. He said we should roughly get back to three percent growth for the remainder of the year and inflation will drift upwards toward the two percent pce goal, leaving them on track to begin ending tapering in the fall and Start Talking about when the exit strategy will begin. Michael mckee, thank you so much. When bottom line continues in just a moment, microsoft unveils a new generation of surface tablets. Cory johnson is here in new york city at that event. This is it. The big question can it compete with the ipad . Can it compete with the laptop . That story and more when bottom line continues. Wheelerhairman tom faced a bipartisan grilling on top of hill today. Both republicans and democrats had tough questions for mr. Toeler on his proposal regulate internet traffic. He is also facing questions on the telecom megamergers. From capitolins us hill. How did mr. Wheeler handled himself cap a prexy handled himself pretty well. He knew he was going to have a hard time handled himself . He handled himself pretty well. He knew he was going to have a hard time and he heard it from all sides. Republicans said it could pave for even things like utility. And democrats said they could pave the way for Internet Service providers to charge content customers for faster lanes of traffic. Chairman wheeler was refusing to be pinned down, but said he would not support a ban. Take a listen to what he had to say. Access, ibuy internet am buying the full pipe. I am buying access to everything out there. And if somebody comes along and , you cannot get this unless you pay more, that is unreasonable and should be banned. But again, he did not back the idea of banning these prioritization, these fast lane deals altogether. And likewise, he did not satisfy the republicans about regulating Internet Services. Republicans are very opposed to that and they lit the chairman know about it today. What did chairman wheeler have to say about the at tdirectv deal . He was asked about it. A bunch of democrats were concerned about the mergers in the telecom space. It is a deal he will have to consider at the fcc. Take a listen to an exchange he had with george mentally of california. Georgematsui of california. The fcc will carefully utinize these deals with without prejudice . Without affectation and complete fairness. Just two more things on a very crowded played for tom wheeler at the fcc. Peter, thank you. Microsoft makes a move to gain share in the market for tablets. The company is introducing a larger surface screen tablet that is thinner and faster than the last one. 2012 and hasn grabbed just one percent of the global tablet market. In comparison, ipads make up 34 . Cory johnson is flying across microsofty at the surface event in lower manhattan, and he joins us now. Fly withnot actually others. [laughter] they suggest this device can do that and everything else. It is an interesting device. As you mentioned, faster, thinner, a little bit lighter than the last one. What is interesting is the marketing message about this device. Listen to what he had to say when he introduced this to a packed room here in lower manhattan. Today is a major milestone on the journey. It starts with dreaming the , of can we design and build a device that takes the best of the tablet and the laptop. They are really stressing the notion that this is a productivity tool and trying to emphasize that it ties in with all of the Microsoft Software experiences, Like Microsoft Office that a billion people have used. This device is part of that productivity and can make you more productive than some of the competitive devices out there like kindle and ipads. Cory johnson, thank you. Outlook onand infrastructure jobs in america. We will talk to the author of a new study from the metropolitan policy program at the brookings institute. Bottom line continues in a moment. We turn our focus now to infrastructure employment in the United States. A recent study by the metropolitan policy program at findsookings institute 11 of the workforce is projected to grow by about nine percent in the next decade. Kaneh point joseph authors the study and joins me now. Welcome to bottom line today. Note 11 our colleague of americans hold infrastructure jobs. That is over 14 million workers. Re . T is the lu greg it is usually construction type jobs, shovel ready projects. But we are trying to move beyond these abstract discussions come a specially here in washington where there is constrained Budget Constraints and gridlock. But we are also moving into the water and energy and telecommunications systems. As well as logistics. Mr. Kane, is there an educational component to this . Do the infrastructure workers 12 a degree echo only of them had a bachelet degree or higher. 80 relied on onthejob training. Barriers to entry level positions with these jobs are fairly low. Why do you think the federal government has been unable to fix the nations infrastructure . Is washington missing or not getting the point on this score . Do they not know what the definition of infrastructure is because its evolving . Long wenk for too focused on Silver Bullet solutions, but at the end of the day, these are longterm investments that are going to be around for decades. Privateeed to invest in and Public Partnerships around the country. This is going to take a longterm approach rather than a shortterm stimulus style one. Why is infrastructure financing so complicated . Is it a question of not wanting to raise taxes to pay for improvements . And what is the likelihood of publicprivate partnerships to finance the work . About thee talks Highway Trust Fund nearing its end this august, which is typically the main source to pay for roads and bridges. Systemslso have water that need investment, energy systems, port facilities. There are many different types of infrastructure that have channels of financing. There is not one tool in the unnatural toolkit in the financial toolkit to solve these problems. What we are seeing for the most part is public and private partners coming together to address these challenges across the country that hopefully we can help with innovative tools to address these challenges. Im speaking with joseph kane of the brookings institution. We are talking about infrastructure employment in the United States. Is there evidence that federal spending on Infrastructure Improvements actually stimulate job growth . I think we can look at specific objects, whether we are talking about dredging projects at different ports in preparation for the panama canal, and even just pothole projects. That will not solve these projects. It will take innovation across public and private partnerships, even civic partnerships to see that. Talk about maybe not so much at the federal level, but. He local level there are collaborative efforts between states. There is one out west, the west coast infrastructure exchange. Will we see more collaborative efforts like that . To see ane would like new surface transportation bill, a longterm surface transportation bill coming up in congress. I think in lieu of that leadership, many metropolitan areas from portland to seattle and vancouver, and elsewhere on the west coast, but also in the midwest and east coast as well, these areas are having to take issues into their own hands. These projects cannot wait. These investments are not only helping the infrastructure itself, but also the economy. How can we move our goods more efficiently . How can we help more people . How can we deliver water more efficiently in years to come . These are longterm issues. We have about 30 seconds left. It all comes down to dollars and cents. Where will the money come from, especially when you have some in congress saying that it is time to start paring back and getting americas financial house in order . Right, i think we have seen different proposals talking about different changes in the tax code. Potentially taking a , these sort holiday of Silver Bullet solutions. But if you look at the metropolitan areas in different states, these are solutions that need to come from the bottom up. These are complex challenges and they need complex workforce develop needs. Will betropolitan areas leading the charge across the public and private sector. Joseph kane, coauthor of the study on infrastructure employment in america. He joins me from the brookings institution. Thank you for your time. 26 pass the rm bloomberg is on the market. Julie hyman is here. Lets take a look at where stocks are trading right now. We do have a pullback today, in part because of worse than estimated earnings as well as other selloff in small caps. We have seen that one a lot recently. Lets take a look at individual movers. G. M. Is a down mover. 2. 4 million vehicles, the total for the year to over 15 million vehicles. 209 inadd an extra charges this quarter. Congress is still looking into why it took g. M. Over a decade to recall the models. And a manufacturer of radio and mark were wave product microwave products is being bought in an attempt to reduce its alliance reliance on the defense market. Welcome back to the second halfhour of bottom line on bloomberg television. Im Mark Crumpton in new york. The top the stop stories we are following. China is warning the u. S. It is jeopardizing military ties by charging five chinese officers with cyber spying. China announced it is suspending cooperation in a joint Cyber Security task force after mondays announcement that officers five officers stole trade secrets from five american companies. Michigan lawmakers are preparing for a vote on bills to give 195 Million Dollars in state money to help detroit emerge from bankruptcy. It would also help with oversight for decades. The legislation commits 194. 8 to help prevent steeper cuts to retiree pensions and the sale of pieces at the destroyed in Detroit Institute of arts. Companiesobama listed that have chosen to relocate new plans or relocate overseas operations here in the u. S. It is to highlight those capable of creating new jobs. Billionesulted in 18 in new Business Investment in the United States. That is a look at the top stories in the news at this hour. We turn our focus to the oil market. Bloombergs alix steel is joined by jack gerard, president and ceo of the American Petroleum institute. Thank you so much, mark. Jack, great to see you. D. C. Change related to oil experts ever since the crisis in ukraine heated up, officials have talked about lifting the ban. What have you know what do you know about that yet to we have taken a close look at that. No officials at the white house have been talking with serious leadership on capitol hill as well. The Energy Paradigm in the United States has shifted so fundamentally. We have to go back and look at the messages in the past. We need to turn that over and make it happen. Expert do you do you know what kind of man they are considering lifting what kind of ban they are considering lifting . I would hope that we would have encouraged them to look at all of it. We want to make sure the government is not in the way of the market. The market is taking us some place weve never been before in this country, a chance to become Energy Secure and a chance to put millions to work and produce our own energy and truly become a superpower in the world. Andook at all the options then come back and say, what is in the best interest of the United States . Lets get beyond the partisan politics. Lets look at the energy opportunity. Is this in the next three months, six months, one year, five years . Im not sure they put a deadline on it, but it would send a good signal to the markets. It would be great if we knew today what we need to look at in the next 3, 5, 7, 10 years down the road. I believe that will spark the economic preparation and reality to put dollars in the ground and put dollars on the shore to allow us to take advantage of this Great American opportunity. And talking about so much oil we are producing here in the u. S. , and a lot of it is transported on trains. Railroads moved about 300 billion barrels last year. When will trains stop blowing up . Look at the facts. 99. 9 97 of everything we moved , we move safely. But every time you look at the news, you see headlines derailing or leaking. Carss, but out of 400,000 , which wast is small only about 10,000 a few years ago. We have done a comprehensive survey of the balkan formation. What are the characteristic of that o