Rose to a record high in january. Shifting over to japan, Industrial Production grew the most since 2011 indicating the economy is strengthening. Jumble. Of data but a all thisrning we got data. Starting at 8 30 a. M. , gdp. At gdp so look we get in theory they refined any little bit. Also, personal consumption consumption. 9 45 a. M. , chicago or kissing managers index. Michiganversity of converts number and pending home sales at 10 00. And we may be getting the letter from mr. Buffett as well. Last years letter was strong and smart from the buffet we wew years ago buffett knew years ago. Check. Ave a warning data stocks, bonds, currencies, commodities. I am going to call it off but i am going to say the markets are calm her given what we saw in the ukraine yesterday. 2. 6710year and the euro. S stronger, up near 1. 38 you can really see the geopolitics coming in. A stronger102 yen. The ruble is stable. That speaks volumes. The backstory away from the ukraine is the managed weakness of the chinese yuan. 615 six. 15. Scarlet fu has the front page. The crisis in ukraine keeps expanding. Overnight him of the latest elopments are russias black navy fleet locked another airport. Crimea the flashpoint. Ethnic russians make up about 60 of the regions population. At the same time, but new ukraine government has put in a to kievto the imf to go and Start Talking about a possible bailout. 35 billionne needs to balance the books. Part of the problem is with the crisis, tax revenues are not being collected. Out,m keene has pointed ultimately they will be able to get through with that they will have a shortterm capital studies years ago in economics, the basic idea, adam, of the real economy. Plunges. No other way around it. Viktor yanukovych, the former president who says, by the way, he is still ukraines leader, is holding a press conference in russia later today. What i would say is things are moving quickly in the ukraine. The newspapers can barely keep up with the headlines. In about 10 minutes we will go to the ukraine with our own reporter on the ground. What what x . Activist investing, who led by both billion or agitators like carl icahn. , foundattacked ebay major conflict of interest because he invests in companies that compete with ebays paypal unit. He accusesonse himself from discussions involving companies he backs. Dan loeb is now willing to work with the current management at 70s, one of the companies he is focusing on. Which is a bit bit of a switch because he has been trying to replace the ceo. He says he will work with the current emmitt smith if they put three with current management if they put three of his nominees out there. By his own rule. Sothebys is basically a bunch of rich guy in the hamptonse th. Guys like dan loeb, how curious a Hedge Fund Guy on wednesday i would like to. [laughter] very tane looking today. We will explain why later on. We have the spray pan person spray tan person. And janet yellen moving the market. Remember it was delayed by two weeks because washington had a snow day. What she that is listen said is central bank may change the strategy of the taper if the economy gets weaker. Market reaction, the s p 500 ended up setting the record. The great headline in usa today said the s p parties like it is 2013. She hit the ball out of the absolutely, walked the fine line that is so difficult to do. We have a special guest. There is a frontpage story for the morning. We have a very special guest for you. We are east coast. If they live three zip code from manhattan we think it is distant. Keating,out it, frank resident and chief executive of the American Bankers Association. Of thehe 25th governor state of oklahoma and we are honored to have him with us today. You look at the mood. Floyd norris writing up the cbo, the budget getting better, jamie dimon talking about what to do with the cash. Why are we so miserable in oklahoma and other parts of the nation if we seem to be doing so well . Thank goodness for federalism because at the state level, bad governance will result in bad results and Good Governance will result in good results. We moveds governor from 45th per capita income to 38th over my eight years. I was only the third republican governor to the state, the only one really did but we passed right to work and constitution through a democrat house and taxes, government of welfare and all those things but at the national level, as all of you know, the big crisis is demographics. Medicare, medicaid, social security, interest of the debt. By 2025 every cent of tax revenue will go to that and that alone. That is why the gloom exists. I going to rip up the script. Minimum wage. In zurich, switzerland, the numbers work up to 12 and here in new york, seven dollars . I am going to guess in tulsa, oklahoma, and mcdonnell mcdonalds the mid to value meal is a little cheaper. How do you do a minimum wage of the federal pages when you have bases we have that disparity . As republican is probably high treason but i have never been concerned about minimum wage at a certain level. Obviously if you set 50 that will not be good because then you will starve job creators. 7. 25 dollars to 10, that is a big jump and from the analyses of last week, a major number of number of people who will not be able to work, that is not good. It is a liberal more democrat agenda. These are the things they believe very strongly in. Here is what is curious. You are a week were a republican governor and the only republican governor from oklahoma who is ever been elected. You raised the pay for teachers by 3000 annually and figured out how to get state troopers more money and you did it while lowering taxes. How did you bring it all together . Forgain, think of this federalism. Except for one state, the other 49 states have balanced budget requirements. You have to balance budgets and you have to make decisions, some good and some bad. Everyone has to sit around the table, democrat and republican alike, if you have a balanced budget the requirement. In washington you can postpone the debates and discussions because there is no requirement for a balanced budget. Ui now head of the American Bakers association but if you want to the Community Bankers covered. What is your take away . The average Community Bank has 35 and please, and they have 11,000 pages of proposed and final roles from doddfrank, very difficult, to say the least, for a 35 Employee Bank to digest. Now the operating income of a lot of those Community Banks rising with the complainants part. Imagine you have a restaurant and you were spending five percent to 10 of operating income responding to the city or county health department. That is a great point. We forget that most of the banks of this country not by assets but by number are small business. 90 of the American Bankers Association have a billion or less in assets. Frank keating we will talk about to be to fail banks. Right now, company news. Speaking of too big to fail, mount gox, a quaint exchange, filed for bankruptcy in japan. Three quarters of a million bitcoins belonging to users and 100,000 of his own. The worldsonce in Largest Exchange for the digital currency. As began dismissing workers part of its restructuring plan. It started firing employees in new york, North Carolina and five other states yesterday. They could ripple in the elimination of as many as 13,000 jobs this year. Cis is according to a Sanford Bernstein analyst. The winter storms of forcing united to cut revenue projections. The airline says revenue will drop after it canceled 22,000 flights due to the weather. No overall figure on how much lower the revenue will be but it prompted one analyst to forecast a much deeper loss this quarter at united. Adam . We are going to take a very quick rate. When we come back, cut the ukraine be on the verge of tearing itself apart . We will be on the ground in kiev. Right here. Bloomberg surveillance on Bloomberg Television, streaming live on your tablet, phone, and bloomberg. Com, and we will be back with frank keating, former governor of oklahoma and current president of the American Bankers Association. Where did the month of february go . Eventful in washington, Foreign Policy in geopolitics playing a debate inn a february washington. Of course, a terrific budget report yesterday showing less of , giving pause as they awaken washington. Coming up in the next hour, we are honored to bring you Charles Plosser, a controversial and very smart head of the philadelphia fed. Guess, on hisr, i inflation worries but much more. Charles plosser on the American Labor economy. Look for that in our 7 00 a. M. Hour. This is bloomberg surveillance. We welcome all of you worldwide and particularly on the continent of europe. Scarlet fu and adam johnson with us this morning. Morning mustread right now. This is kind and lost in the shuffle of what is happening in ukraine. The New York Times the editor of the literary magazine talking about young people risking their lives to demonstrate against the government. Are not especially interested in geopolitics. What they know is the democratic progress needs more than just the legend to move it forward, it requires full freedom of speech and the media. He says the government cannot go by its old playbook of suppressing information. It does not work in this era. This is an era of twitter. 140 characters. I have to read up on this, but the distinction to me in people is a lot of we dont say the venezuela. Theas not a member of soviet union. Venezuela is incredible, more oil than any country in the world. More than we have, more than saudi arabia or more than anywhere else in the world but think about the poverty. Oflets go to the governor oklahoma, former governor, frank keating. We see where we are in the independent oilproducing Central States versus south and venezuela. How is the perception of venezuela in texas and oklahoma . It foren venezuela. We had an Exchange Student from venezuela years ago and he became an m. D. And lives in miami. His parents are both. Theres in venezuela, povertystricken. The experience of a wonderful country like that the Security Services of cuba basically run the Police System of venezuela. It is a thugocracy. It is incredible, in one of the National News media papers, a huge line of people lining up for bread. They cant even get toilet paper. Adams point, a very rich country because of the oil revenue they have. It has just been miserably governed. That is why it is poor. Detrolstay to the and agree. Frank keating our guest host for the hour petrolstate to a degree. We will look at the big business and big scandal around college athletics. The failures at unc. Also coming up, we will head to ukraine next. Good morning. Im tom keene. A frigid morning across much of the northeast. Bretton woods, new hampshire, 20 below zero as we speak. Weve got to warm it up. Heres top headlines. Adam johnson hasnt. Car seatsan to make mandatory in china. Working on a proposal requiring the use of safety seats. China has half the number of vehicles in the u. S. But three times as many children are killed in auto accidents every year. Rebounds, the major brewers again are focusing the cheap bill. Miller, coors, anheuser in benefit will increase marketing for economy brands like keystone light and busch light. Persistent unemployment left luke allah workers with left less money. Could be another blockbuster. Warner bros. Is filming a movie based on the popular videogame on and on caps the success of the game. And you have the lego movie. Lego has taken an almost 190 million in the box office animals three weeks. I am not sure i am going to see the movie but i respect what they do. Everything is awesome. Remember that. The news flow out of the ukraine, on the verge of tearing apart, ethnic tensions in crimea. Two airports taken by armed gunmen dared this morning, very difficult relations between ukraine, europe, and russia. We need to go to kiev. I were reporters there is iev,rting on the calm of k the tension of from you. I assume all of kiev is focused on crimea. Is a major concern. I had a chance late last night. Is a down with a man who security chief his official title i think is secretary of National Security defense counsel in ukraine. I asked if he is worried about the Russian Military conducting exercises nearby. Yes, i am. I am worried about it for sure. Also the capture of the government in crimea by units in my opinion that were sent from russia, from moscow. From russia, we see a very aggressive method of tearing out policy toward ukraine and we attempts to the five divide ukraine or take the historical crimea. Em, on the among will focus of crimea but the former president is in moscow. A press conference at 8 00 a. M. New york time. What will key have a for from their former president . The big concern here today seems to be about missing money. The new Prime Minister here says the regime of yanukovych, the man who found safe haven in as much as have put 70 billion offshore and that is morethey want to know about. Especially given the fact the ukraine need to 35 billion in the u. S. Has pledged a mere billion dollars. As i look behind you and kiev seems to be returning to calm, what is your expectation regarding the imf who will be in kiev next week . New Prime Minister this morning saying to a crowded press conference saying they are convinced they will be able to pay back all their creditors. Theyve got no restrictions on what they are willing to do. On thealking to People Ground and looking at how people are going about their lives, what have you observed. The city center, it is very difficult to get cash out and rumors flying about the restrictions on how much money you can take out. There are a lot of arm demand. They are not carrying weapons that can fire bullets but they are carrying clubs and you see them everywhere. Kind of a carnival atmosphere meets mad max out on the square. Marx in kiev, appreciate that. Dowe see it on and on and i not see any compromises as we go into the weekend. Arrivalonder what the of the imf officials in kiev next we will do. The u. S. Has pledged money but a symbolic amount. 1 billion out of 35 billion. I want to make a point. We spoke to hans of graylock on the debt Restructuring Panel for grayson also restructured ivory coast and argentina as well. He made a point it is an income statement issue and not balance seat. The level of debt in the ukraine is significantly lower than a lot of European Countries but the problem is there are no tax receipts right now because of the crisis and it is not able to make some of the payments. The government is busted, no question. But the real focus is should the imf go win. That is a going debate. I dont know who goes in . The reason the imf was created, postworld war ii, to go in and help broken economies. We are not saying ukraine is broken but aspects of the government is broken. The little deterioration of tape. Dow futures, 20. The rest of the markets, unlike yesterday, much calm her off of the headlines. But you can say for certain that most investors are not too focused on what is going on in ukraine but looking at what janet yellen said for instance. In the meantime, new alltime highs in the u. S. Maybe the u. S. Is just the best place to go. We will talk about the u. S. When we come back, specifically about the bank tax. Failthe fix for too big to banks make the problem worse . I guess is frank keating, president of the American Bankers Association our guest is a frank keating. Good morning, everyone. Im tom keene. Lets get a data check. A lot going on this friday morning. Record high,er the s p gives it up a little bit. Not confident it will continue. 10year all over the place. Geithner yield today. A little bit of risk on. One. 38 euro begins to get your attention. You wonder when it starts to hurt germany. Warner to losers. Turns out jcpenneys and struggling, they managed to put in a good day in the market yesterday. 25 iny up by the most, the still trading below 7. 50 a its a gross margin will significantly improve. As for sears, the fourthquarter loss narrowed. Eddie lampert, the ceo over there. Chicos down 8. 5 . Im winded. You know what, president obama is running again and so is Vice President joe biden but it has nothing to do with the election. They appear in the video to promote the first ladys lets move campaign aimed at childhood obesity. Jogging around the white house. Doing laps around the rose garden. The president s job dog. I love the music. Joe. Theres the dog. Hillary would never do this. Joe. Kind of leisurely. Not going for record time. Wouldhink the president rip him apart if it came to basketball. You are the hockey guy. He is going joe speed. After a good workout with campaign. Ove joe, a vodka gimlet. Not sure it was water. The houseirman of ways and Means Committee wants to cut the top rate down to 25 , increase at the banks. Frank keating is head of the American Bankers Association and former governor of oklahoma and he is with us all our. How do we bring back borrowers and things together so they are partners and not adversaries . Ad that you showed, but imagine if it was republicans and white shirts jogging . When republicans the fact that banks are bad and weft attacks the banks, and as you point out 90 of banks in america are fewer than 35 people. When do we see banks and borrowers as partners . I really think banks today, as a result of what has happened in 2008 a strong liquidity, strong capital, wanting to lend. Obviously to borrow you have to have a job, assets, and income. We dont do not we the banks but it is not the behavior patterns that occurred prior