Hsbc had a preliminary read. The chinese stocks are looking at the worst arch of year since 2010. In the u. S. , we have Economic Data at 8 30 a. M. With First Quarter gdp and initial jobless claims, 9 45 a. M. , bloomberg beforer comfort, 10 a. M. The bell, we have a slew of earnings. After the bell, it will be google and amazon. Those are two big ones in retail. Are they more optimistic off of what facebook did . And facebook has so much rising power. Lets get to the data check. Cable is out. Revenue was higher than anticipated and they increased their dividend by 15 . A lot of earnings are coming up this morning. There is the data for you. The yield is a big story. The fed meeting and there are the currencies. I am watching the yen and it is better than good. It is weaker. Is at thefor me bottom, a basket of euro and dollars. Chart and its ugly. If you are Vladimir Putin, this is not good as the world comes to sochi. The ruble appreciates and then it has been churning and you see this massive spike, some of the emerging market tension which we sought yesterday comes back on u. S. Investors. It is not a correction but getting there perhaps to rapidly. We will do a lot of markets today. We are scouring the papers and the web. The Federal Reserve appears to be uniting behind its strategy of a gradual withdrawal from stimulus. Policymakers said they are cutting qe by another 10 billion per month. Quantitative easing remains but less than before. This is the first meeting without a dissent since june of 2011. They did not talk about emerging markets. They did not talk about the turmoil and jpmorgan said it would take serious data to knock the fed off its course. I would agree with that. Courtesyy there is a among Central Banks never to speak about other nations and other Central Banks unless there is a major crisis. I was not all that surprised. Shares of facebook are up as much as 13 in the premarket trade. Facebook revenue jumped 63 last quarter, more than half of its ad revenue came from mobile. The average effective price of ads was up 92 compared with one year ago. Even though the growth of active users seems to be slowing down, facebook is extracting more value from each advertiser. Has become facebook a mobile company because over 50 as revenue comes from mobile and that is consistently increasing. Laterwill dive into this and particularly how the mobile part of facebook. Or to the other players. There is doubt about twitter and the others. The story perfect for of google selling Motorola Mobility. To lenovo for 2. 9 billion for it and bought it for 12. 5 billion. It holds onto most of the patents it acquired in the purchase. Lenovo shares are down eight percent in hong kong trading. Some site lenovo paid too much for this. The tech crew i thought did a better job of breaking it down. At 12 billiond but take away that, and there was a big loss for google. The official back of the envelope, this is my personal stationary. We thank all sorts of sources for this. There is the matter. Value of the deal of the patents. You got the tax losses and profits. Youve got the Cocktail Party indavos and the other expenses and you come out with an actual profit. You are saying that google did not lose money on this purchase . Frome reporting i hear experts is that this was a good deal for google. With the lenovo price was it a mistake to get into in the first place . Thats a fair question. Some said that google had apple envy. They said thats not where they want to go. I was looking at a citigroup Analyst Report and they said this removes one of the conflicts of interest that google had with samsung and other developers and companies that use Android Software and puts them in a better position and there will be less acrimony. Ever course that it can lift earnings by four percent next year. Lets bring it back to the markets and you see the financial challenges within emerging markets. We want to take a broader view this morning with Richard Falcon wrath. He is a principal at chertoff group, former deputy of Homeland Security advisor for the white house. I know you dont look at the ruble basket but i know you are looking at sochi. This is a jumble for russia. What is the back story for russia as the world travels to sochi . All eyes are on russia and its not just sochi, its also ukraine. Russia is entangled in ukraine which is hard for us to imagine. , is that moving the currency the domestic issues of a weaker ruble basket . Thats a good question. My sense is it is probably not having that much effect on the overnight rats rate but in its relationship to the west and the people who buy petrochemical, its a big deal. This is a country that is on the hot seat. All eyes will be on them. It will beere directly focus but they are watching in the wider world. Asked about Stanley Fischer and his work in 1997 1998. All the Research Notes talks about canaries spread around the world in the coal mines of the world and there is a contagion. Does your study of the linkage of finance to market turmoil is what we are seeing link into a larger crisis . It definitely can. At some point, there will be a change from the Vladimir Putin control over russia. Is living on the brink of crisis on multiple peripheries. The latest one is a Macro Economic not crisis but the early signs of something to come. If you have this spike, these are things that topple governments. Russia in 1998 was a. Of immense turmoil and led directly to Vladimir Putins ascension to power. You see that in argentina with the government there. We will talk about this throughout bloomberg surveillance. With targetarting narrowing in on the big breach of data. It says hacker stole of vendors credentials which were used to gain access to their system. Personal data for as many 70 Million People may have been stolen. They say the breach hurt holiday sales. Citigroup is joining other banks to improve working conditions. It is requiring junior bankers to take saturdays off plus, they must use all their Vacation Time each year. Goldman sachs and bank of america have come up with similar policies to improve productivity and keep anchors from leaving the firm. Europes Largest Oil Producer is posting a 71 drop in profits. They blamed higher costs and lower volumes. Shell is suspending and oil drilling ruddock to alaska after a federal Appeals Court says the government improperly awarded licenses to drill there. Are you using my Vacation Days . You have to use all your Vacation Days. I am. You never do and then you complain when youre on vacation. I want your Vacation Days. Every day is a vacation. Why do you yell at us all the time . Im like this is fun. The turkish lira i want to talk about shell and exxon. We are also looking ahead to ericsson. They used to sell cell phones. And we will go to microsoft next. This is error twitter question of the day this is our twitter question of the day good morning, everyone. An important interview after the president s state of the union he is the republican senator from texas. He is making a huge splash on number of months ago with a filibuster or some form of it. Senator ted cruz will be live at 10 00 a. M. This morning on market makers. This is bloomberg surveillance. We have better markets and i am watching the japanese yen as the global litmus paper. It is a weaker yen which is a calm that is out there. There is all sorts of news going on including a stream of earnings. We see that with the media focus particularly in the new york area with Time Warner Cable front and center. It beat earnings estimates. Revenue came in higher than anticipated and it boosted its quarterly dividend. It sounds great until you get to the line where customers are declining. Customers are down 85,000 in the quarter which is a consistent theme. Charger is making a bid for 132. 50 and Time Warner Cable wants between 100 50100 60. How do you make that argument when you are losing subscribers . The broader theme from Craig Moffett is cable is winning. That is his basic theme is that everybody wants in and the consolidation of the business because this is the platform that is winning. You see that with comcast in agreement with chartered to by certain divisions of Time Warner Cable business at the deal with charter ones of going through. John malone is front and center of that. Time warner cable shares are not trading in the premarket yet but we will look that you possibly gain when it opens for trading. I have been thinking about cutting the cord of Time Warner Cable a little bit. I like apple tv. It is more a microsoft interview that we have. Ericsson came out with earnings as well. The focus is on Profit Margins expanding to 37 that beat analyst estimates Britt Erickson shares are rising the most in five months. Stockholm, we have the companies ceo of ericsson. On your profit margin, margins are expanding and a lot of what you and other Companies Like yourself depend on is carrier spending and that is slowing down a little bit. What is the outlook customers to spend more in the coming year . We knew lastat year that we would have more growth in the first half. Half, we would have a diluted affect and our profitability would go up. In 2013. Hat we see we are in 180 countries and we are having markets that are doing well now. Russia came in well in the Fourth Quarter as well as china is starting to move. They have decided now on 4g and we have a little bit lower case in the u. S. But we are not losing market share. A stronger first half i want to bring up something that has been swirling there have been reports indicating you are under consideration as the next ceo for microsoft. What is your position . I dont comment on that rumor. What i am focused on is on ericson. I am here as long as the board supports me. Think this is a fantastically exciting company. And we are growing. You have has such good success after decades of trouble but its the same five form size of microsoft. You got over 100,000 employees and microsoft has 90,000. Youve had the global travel. Redmond,re to move to washington, what would be the skill set you would ring from ericsson . Its a good theoretical question but i am focused here at ericsson. As long as the board is supporting me, thats what i want to do. Its a theoretical question. I think hans is staying on script. Servicesd the global before and you have worked for ericsson all over the world. You have seen firsthand how quickly companies can rise and fall. What is the companys key to survival . And can go back 10 years who the competitors were 10 years ago. They dont exist today. You can transform very quickly in a company. We are in over 100 companies so my goal is to route this to move this company in the right way. Right now, we are going into tv billing systems to strengthen our portfolio and support our customers. I think that is the key. Thank you so much. He is considered by many to be a candidate to replace Steve Ballmer at microsoft. Part of what ericsson has discussed in the last in the past a security. What will it take for European Companies to feel safer . Am not sure its possible. , unless itstem fundamentally changed, allows the government access to data. You have to comply with u. S. Law. The entire tech space, theres an earthquake happening under the tech space probably because of these revelations. We could talk for an hour about this. Richardfalkenrath with us. A challenge that every Company Faces like ericsson and microsoft and apple. It leads us to our twitter question of the day the mobile phone business has changed cataclysmic late over the last few years. This is bloomberg surveillance, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. So sick of the Denver Broncos. Mckee tells me on radio every morning he is a diehard Denver Broncos fan. He is so excited. Nd peyton that. Bloomberg surveillance, futures up seven and the yen has a calm in the developed markets. Even some of the emerging markets are challenged. In russia, they are challenged. Emer. Look at ian br he says joining us is richard falkenrath. What will happen in sochi . There is a risk of violence and bloodshed. I think they will do a good job inside the Olympic Village and stadium. They will do that through an iron hand with a security presence that its a very violent area and the terrorist groups that Vladimir Putin has to deal with over the last 20 years are capable of mounting spectacular attacks, very sophisticated attacks despite the best efforts of the security. Bremer is writing that Vladimir Putin is the most powerful individual in the world. I think you overstate the world. He is powerful but russia is not without its problems. He has had a few successes this year. Beneath the surface of russia, the economy is focused on extractive industries. It is not innovating and has terrible Public Health problems. He is losing popularity. He probably would win another election today. Will people not send their athletes . Is there just a safety question . Its not an easy place to get to. Findthletes i think will i dont think we will have a repeat of the 1972 olympics where there was a successful attack against the israeli delegation. The athletes will be in a very secure enclave. The supporting venues will be tightly controlled, it is the surrounding areas where these groups that are conducting the Violent Attacks in the caucuses want to attract attention. So the games will not be derailed. ,ming up on surveillance emerging markets continued to tumble but the fed pushes ahead with plans to taper. What is the take away from the mixed signals, that is next. Acquired the sens on washington as the Washington Redskins once again will not be at the super bowl. I am kidding. There is a beautiful morning shot of the Nations Capital with the president outselling his state of the union message. Washington wakes up with politics forward this morning. This is bloomberg surveillance. Looking at the gainers and losers from yesterday and weve got Earnings Reports and yahoo was a big decliner, down almost nine percent. Marissa mayer is having a tough go at turning around this company. Display ad sales continue to fall. They need to call facebook. Paging larry page. Lets do a data check. The 10 year yield comes in off the fed. They are tapering. Robert cinch has been decades liking economics and the markets. He is with Pierpont Securities and joins us now with markets in turmoil, good morning. Good morning. You have seen this so may times before, what is different this time . I dont think a lot is different. On the front page of the wall street journal yesterday, turkey was in a test case which is been going on for three or four decades since we have Floating Exchange rates. The history of this is that if it is going to be successful, it has to be right away. If there is a big short position and you raise Interest Rates turkey did a Dramatic Group move south africa did not. That will work in the short run because there are not fundamental changes that are necessary to come in behind it. Then this really does nothing. Did they have that discussion yesterday at the federal open Market Committee meetings . They may have mentioned it yesterday but i was not surprised that they did not mention what is going on in emerging markets. When the fed started doing quantitative easing, i think it was the second round, the dollar weakened a lot and the brazilian finance minister was accusing the u. S. Of entering currency wars but the fed did not acknowledge that. The fed does not want to get into a situation where you have to go to congress and Congress Says you are conducting Monetary Policy based on what is happening in brazil or turkey . It will just not happen. Lets bring in richard falkenrath. You are going to argentina in a week. Experienced a lot of turmoil and inflation is picking up in the currency is worth less than it used to. What are you looking for when you go there . The immediate thing is where you change or dollars. These unofficial rate is 50 higher than the real rate. For people trying to get their money out, its difficult to do it in an economic way. There is a huge thriving black market in dollars in argentina. This is georgemagnus this is George Magnus you take the Foreign Exchange space and link it into equities and bonds. For our viewers who have a 401 k , do they essentially go to cash well you play your games . It depends on how aggressive people want to be. Forward,youre going most investors and particularly the active investors, are off to bed start. They came into the year and wanted to be short on bonds and they want to be long equities and there was a lot