We are so about 20 off of the highs. We have earnings today. After the bell, solar city. Doing a monday data check for you. An interesting week as we raced through the First Quarter 2014. Futures flat. 16,103. Euro advances. That is important. And in elevation there. Hydrocarbons elevated. Onto Foreign Exchange handle with a little bit of oil as well. Is gold currency . Does better. In the last hour it has come back a little bit. All in all come the stability off of the cacophony of the weekend. Have scoured the ski slopes of Northern New England to find scarlet fu returning from a snow bank. I survived. Well rested. Nine hours of sleep one night. I love the photo drop of you coming out of the helicopter. The ukraine topped the front page this morning. Issued an arrest warrant for the ousted resident who has fled the country. They are on the wanted list for their role in violence that killed more than 80 people last week. He was last seen in a prorussian region. A lot of interesting stories of his palace and mansion. Also, documents word dumped in the ukraine that were years of lavish spending by the president. You know what is curious ,bout that, you think of putin a man that respects strength him and yet demand that they backed is now on the run. The ukraineme time, interim government says it needs 35 billion in aid to avoid default. The numbers keep getting bigger. Support. F alleging that is right. More about later on. The second front page story could be a landmark deal. Netflix agrees for more direct comcast broadcast network. We do not know the amount of the deal. Millions of dollars per year is what were hearing. And make surepeed viewers can watch the latest season of house of cards without an eruption interruption. Getheyre paying money to this. This has been widely predicted we would get to this point. Craig moffett i think. You wonder what this means in terms of Net Neutrality going forward. In other words, a disadvantage . I must say my goal is to understand what Net Neutrality means. Third frontpage story. Mobile Congress Gets underway in barcelona. A lot of products being unveiled. Samsung botching the nextgeneration smart watch. A smart bracelet as well. Apple everyone is waiting for some kind of watch later on that could come out later this year maybe next. This is like las vegas but in barcelona . This gets a lot of people excited. Talking about the kind of economy it generates, to. Giving a keynote address as well. Technology, mood rings. They knew back then how we felt. Like frontpage stories. Are focused on the events in the ukraine. For that matter thomas our guest host of the hour, Richard Falcon falkenrath. Ard to be kind, one of the great authorities on the economy and interesting relationship, jeff sachs. Cannot do better than that. We will talk about russia in a bit. Put trying to make a new russian blockin . Of course he is trying to maintain the strong russian influence in his region, middle east and syria and elsewhere. I do not think it is so much a soviet bloc, but russia does withimportant interests the eu. I think the eu has neglected that. This is the country in the middle. If the eu pushes all the way, ukraine, you are hours. It, where well the i think ifbe . Ukraine is going to continue exist, it will need some form of federalism that takes into account of the difference. The base of the rupture in and russia. 1954 when it was transferred to the ukrainian process. It is if there is one single flashpoint, it is this. We had two votes and two shifts. Mount whitney and taylor. Shift in the black sea or Eastern Mediterranean with the 68 as a signal to the russians as a year port as an importance. With the wardens as a signal . Goes to war sheep warships work under the Aircraft Carrier would be over it. They had to say in the context of a larger dispute with russia in the earliest part of the 20th century, turkey can control the street come up but it cannot let in nonwaxy warships. You are a former advisor to the government of russia, trying to help grow the economy. How much is about this, the flow of oil . I think first of all ukraine is a sizable country and sizable part of russias trade. Again, russia has interest in ukraine. It was deemed as part of russia through most of modern history. Its a restaurant russia has strong connections in and shipments and of gas but across the economy. Last year when ukraine was negotiating with the eu on succession, i think there was a lot of neglect. It was not that russia was stopping the deal, but a lot of the correct about russias real interest in what would otherwise be massive trade version. Silenthas russia been so officially streaking to what is going on in the ukraine . There has been talk about a western engineered to. It was amazing on friday across the bloomberg terminal to not see what was there. Some of the closest western observers are saying russia has not played it strong hand, the idea that he was just a russian puppet is not right. What is interpreted as all manipulation has been denied by observers. Delivering. They did not want offense in the village of the olympics. Circle of the olympics that did not work, that was Jeffrey Sachs fault. Have blamed you for Everything Else. Jeffrey sachs with us. On this monday, Getting Company news. Here is scarlet fu. A costcutting drive at hsbc falling short of the goals. Disappointing cost savings and a drop in revenue causing the bank to post estimates that trail. Profit was 26. 6 billion, 2 billion lower than forecast. Hsbc has closed or sold 63 businesses as it tries to reduce cost. Ubs wants immunity in the global investigation of currency markets. The swiss bank trying to become the first two report the conduct to american and european regulators. Ubs employed a similar strategy last year when it disclosed is the liborle in scandal. Las vegas sands targeting japan. They are ready to invest 10biln in the country according to the ceo. Casinos are banned in japan but confidence is growing they will eventually be legalized. He said he would consider working with a local partner in the country. Never thought about it. We call it las vegas sands, but 70 of the revenue comes from we ought to call it. Lobal sands i can see the logos all over tokyo. We have much more coming up. Dumping Microsoft Software for blackberry. How will this affect them . We will discuss that next. This is Bloomberg Television streaming on your tablet, television, and [indiscernible] bloomberg. Com. Lex good morning, everyone. I am tom keene. Bonds are up. Yields are low work. Lower. Still front and center in the news. 11. 5. Them at he will join us later in the hour. The only american on the debt restructuring committee. Have german afford recently, you might have problems trying to deal with the platform that was microsoft. Guess what . Microsoft is out of their. They said with auto sales peaking, this is where the battlefront will be. Trying to find a new way to trade in the vehicles for newer vehicles, particularly those with other integration of technology. Better integration of technology. Instead. Blackberry a little bit of a surprise here. Has is the thing, ford slumped in jd power and surveys because a lot of customers have mymy functioning functioning tech systems. This is a top selling point for 39 of car buyers, compared to say power and speed up 14 . The ability to make phone calls or do searches just by using your voice in the car. Jeffrey sachs has a 1937 ball volvo. We do not get this. Berry. Ck hairy . They have been using this system for 30 years. Who knew . They are ready have deals with nissan and other companies. It is the stuff that links all of the telecommunications equipment, not just the phone but Everything Else in the car like gps. To control Nuclear Power systems and drums. Guidance systems. There are other vendors for the drones. And may have applications in the area, but there are a number of niche workers for drone off Rating Systems already. I did not see blackberry practicing that. Like apple is in bmw in the song. Carved up among the big tech layers. Google in gm. Mentioned in ford in blackberry in bmw. You are suggesting people buy a car because of the systems. People are buying a car in terms of what works for them like technology. 39 based their decision, top selling point for a cart is the in car technology. Processis technological progress. We would not have this conversation five years ago. Of course. We will see Information Technology penetrate every single sect or, transform every single sector of the economy. Where is samsung in this . At this point not even in onda. Ai or hyunda probably more focused on hardware right now. I did not see this. It goes 40 miles. Faster than the corvair. Fair enough. Coming up in the next hour, and of activate,under Michael Wolff will join us to discuss the implications of the Netflix Comcast broadband. This is bloomberg surveill ance. We are everywhere you are. Good morning. Good morning, everyone. I am tom keene. Gorgeous washington. It a look gorgeous sundaes. 8 30. Up at the crack of sleepy washington. The only one up in the entire city, peter cook. Up one. That futures up to. Top headlines. In bangkok, and the explosion at a main shopping district that killed three people, including two children. The attack came at the heart of the city. An area where one of the protests have been staged for antigovernment rallies. Jason collins became the first openly gay nba player by signing with the Brooklyn Nets. He played 10 minutes in the victory over the lakers. He was signed to a 10day contract. 10 days. He is a 12 year veteran of the nba. The box office, the lego movie held off. I walk in a movie to keep the number one spot. Have you taken the kids . Watched at the first weekend it was out. Would you go . I have not gone. It would be creepy to go to the lego movie. Worse if i went. Tom and adam can go together. Time for the morning must reads. Jonathan golomb working at ubs. A Great Research note. Tapering expected to continue while u. S. Import should rise on stronger u. S. Gdp. Emerging market concerns are likely exaggerated. We recommend overweighting u. S. Companies. The optimist Jeffrey Sachs is with us on the resiliency of of of the american economy. You are front and center of the mix of stimulus. Are we the locomotive running the engine and will do better because the u. S. Is doing better . How can you have it both ways . The stimulus of 2009 was in the final review. There was a eulogy in the Financial Times yesterday as well. I never believed in that. I think what we need is a longterm strategy. Stimulus came and went. It did leave us with that. But where is the old politics of they areime and place . The ones that did the longterm strategy. Where is the interstate highway system of the 21stcentury . It will not be a highway system that could be fast rail. Revolution in the country that changes health care and education. That is what we are not seeing. That is not shovel ready. That is what was missing then and still missing now. You are long america, right . The potential is phenomenal. The skills, what this country could do but are not doing it right now. In that sense, i am annoyed. When you talkause about technology, it is not jobs. Deficiency. It is quality of life. Making the Healthcare System not the most expensive in the world. Making it possible to get what we want in terms of what we need in health and education and systems failing right now. Our infrastructure so antiquated you come back from any trip abroad and you are back in the middle of the 20th century, and you feel it. La guardia, italian for sitting on the ground for four hours. Joe biden highlighted that as well so eloquently. A lot more to talk about with Jeffrey Sachs. Russia won the medal count in the olympics, but it but didnt win the games . Tweet us. Good morning, everyone. Adam johnson survived the perfect spring weekend in new york city. Doing a data check right now. I went away for a week and turned out stocks did not do much. Futures right now not doing much either. Up by less than a point. 10 year yield taking a bit lower. A lot of questions on why the euro remains resilient. Current oil down slightly. Olivia sterns returning from in theead to tail russian olympic outfit. This went viral. She wore the russian uniform usarussian hockey game. How can american room for the russians . Of the olympics, they are over. The government seeks his arrest. Jeffrey sachs have seen this before. I will never forget the young Jeffrey Sachs is the return to america from the soviet union after the collapse. I remember your voice on all things considering. Is this anyway and related to old russia or do we get that trying toa new putin develop a new russia . I think it is . I think it is a new putin. The country is economically stable. It has had a decade of growth. Of course buoyed by High International oil and gas prices. When i was there and listen to the economic debate, it was found, serious, forwardlooking. I was pretty impressed. You wrote this up and project syndicate as well. The focus is on the northern shore of the black sea. That to be consider their territory . Russia considers it to be a strategic interest without question. It has military stakes, historic stakes. It is the neighborhood. A china side signed freetrade agreement with mexico, the United States would take notice. We would say excuse me, we have quintess have interest also. Looking, what has been written this morning in the Financial Times. Brillianttentially hes by him. This is his neighborhood. He says do not over do it. That was my morning must reads. Toional security advisor jamaica carter. He writes irrespective of what happens in the near future, i continue to believe sooner rather than later will be part europe. Emocratic i saw this over the weekend and im thinking of dr. Chicago shaveago. Why is there a finland option . That means they did not join nato. Bufferre seen as a between the west and russia. Russia is very sensitive to its neighborhood. It has been invaded from the west throughout its history and take seriously not to have nato reach against it. Was neutral but clearly aligned with the west. That is as much a threat that is a threat to the russian president in a way that 50 years ago tank divisions would be a threat. He has a different point of view about how the country should be governed. As if the people outside the ukraine are moving chess pieces around and can control this anymore. What happened over the weekend was a result of the street. What happened in the eastern part of the ukraine i think will be a result of what was donically russian ukrainians. It still does mean in the u. S. And eu certainly have to be very careful and treat the ukraine issue together with russia. They do. They did not have much time because of the Macro Economic conditions. You have a great euphoria of toppling the old regime. Map of lemonheads where they toppled the statue. What kind of role should the u. S. Be playing right now . Clearly we are in the backseat. The Foreign Ministers of germany and poland are the ones who negotiated the deal that preceded the final collapse. We are just in a supporting role. Here is the thing, there is almost something offensive about those of us comfortably sitting in new york or in paris or in playing chess with the pieces that are internal. How do we insert influence while still respecting the fact that this is a sovereign nation trying to figure out its own future he . Precisely that outsiders have been playing chess. When the you made its move last year, that triggered a resentment and divisions. Today he says be careful. Ive the same time, a german in the New York Times says germany must lead to get ukraine all the way into europe. Back to my book about early winter, Rick Atkinson about moving from normandy to berlin. Almost 100 pages on the basque backside. Most people think to you all to. The first observation was the amount of alcohol consumed out of record level. Take us away from the myths and stereotypes we get wrong. What is the thing we need to readjust in our thinking about the ukraine. Ukraine was a battlefield for centuries. Armies and tanks and coppery divisions marching back and forth. I think those things are over. Any no attorney intervention, forget about it. This is beyond what he did in georgia at the beijing olympics. If there was the idea that anyone is coming to the rescue, forget it. I want to go to a wonderful new book on russia and the United States. What would be your to do list for Vladimir Putin right now . As i said in a recent column myself about his economic to do list come a russia is a petro state clearly, but it needs something more than that. It cannot just survive and flourish as a petro state. What was arco also remarkable was how much knowhow and technology but not integrated into world markets. Russia still has the potential and i think should pursue it to build the high base economy. That is what it has not adequately done. Jeffrey sachs with us on russia. , weoming up on surveillance will take a look at inflation and productivity, the relationship. As high inflation kill additivity . Single best chart is next. Good morning, everyone. Bloomberg surveillance. Adam johnson making me feel ancient right now. Good to have you back, scarlet fu. Young adam johnson is here with top headlines. Venezuela, the president accusing rivals of being fascists and banding with the u. S. To destabilize the economy. The president made the comment and a tv interview last night. Arrival fired act to save the world is starting to use the word genocide to describe you. At least nine people have been killed in antigovernment protests in the country happenin