That later today. Ism manufacturing. Lets look at a data check. Futures are 18. All10 year yield has been over the place which is a good barometer of linking the ukraine to the market with equities and bonds. Nymex crude and brent are elevated. On to the next screen the vxx 14 and the ruble 36. 49 and brent crude again. That is the big change from friday. Oil is really on the move. To see somearting response in the market from the tension in ukraine. F everyone ignored it last week. If you look at the front page, it is more focused. It has to do with the ukraine. Both the Financial Times calls it the russian creeping invasion. They received permission from the Russian Parliament to send troops there. There has been no public remarks. We know russians are active fighting are occupying airports. They have troops in crimea which serves as a departure point for russian ships. The response from the International Community has pretty much been widespread condemnation. John kerry is on his way to kiev and the president is weighing sanctions against russia. John kerry mentioned there could be asset freezes, be subband, destruction of trade but it is all up in the air. Foreign ministers are holding an emergency meeting. This is the economics of the moment with secretary kerry going to kiev that so many have requested. They aree yesterday well prepared for any guest shortages. Thats one of the big Economic Issues in terms of russia. It suggests big changes and the way that russia sees itself in the world. This is soviet russia. This is not russia the global power. The video and photo of the moment is ukraine troops lined up behind a screen. That has been the single photo of the morning. This will be our focus. Ian bremer will join us later. We are starting to see the repercussions rattle through the market. You mentioned how russia raised its main Interest Rate to seven percent from 5. 5 which is a most since 1998. It has not done much for the ruble and stocks worldwide are falling. Futures are lower as well. Treasuries and gold are higher. Crude oil is up as well as natural gas and wheat prices. We can expect to see more of that. This is a significant change in the fluidity of global assets. Those are the front page stories. 101. 25 is a global litmus paper. About sovereignty and the Nato Response to actions by russia area the headlines continue this morning and Richard Falkenrath has given us terrific perspective on events in ukraine but the courts mated on the coordinated response of the west. Nato, doprinmer on they still have teeth . It has a lot of forces under arms. Border countries ukraine. Teeth but whether they will be used in a serious way in a military conflict with russia, i seriously doubt. We are part of nato and the secretary will fly to kiev today. What would you suggest is his priority list . He will try to shore up the new Ukrainian Government. We will have some sort of offer of nearterm fiscal assistance for the ukraine have an immediate fiscal crisis on their hands that they will try to deal with. We will try to show solidarity with them against what he will describe is a russian menace and stiffen their spines. Would he go to crimea to meet with russia or moscow . He definitely will not. That would be too provocative. I doubt he would go to russia. The symbolism of a highlevel visit like that with russians is too risky for the Obama Administration. What type of influence does the u. S. Have . Not extensive, economic sanctions are an option but they are selfinflicted wounds as well. If you sanction the russian oil experts to europe, it will hurt the europeans as well. They will look at visa restrictions on a couple of russian officials and may look at asset freezes but russia is a really big economy. Its not like some of the other countries that have been effectively targeted by sanctions. Tore is very little reason believe a sanctioned strategy will work to course the russians. Everybody agreed over the weekend. I was shocked to see the statement talking about the russian arch is a patient and the g7. Russian artistic patient in the g7 the russian participation in the g7. Times of International Crisis is when you want governments talking. It suggests this issue is more important than any other issue on the International Stage like a around or syria or the global economy. Ansuddenly say this is important country, member of the Security Council and we will not have meetings because we are to talk . Not sensible. Here is a geography lesson. Ryan chilcote reported out of lush and that mr. Medvedev said a bridge will be belts be built, what is this . The blackdge connects sea to the sea of red. Currently, the only land bridge on the crimea runs three ukraine. It is called the deaths mess of parakot. There is another straight on the far eastern side thats about four kilometers from what is part of russia. First person to conceive a bridge across a straight was architect of the third reich is a way to march troops into persia and they began construction in 1943. The materials were left behind and the red army built the bridge in 1944. It was destroyed that winter by ice floes. An agreement was signed by the former ukrainian president and the former russian president in april of 2010 to rebuild and now they are recreating the idea. What to crimeas want . Its a good question and we dont exactly know where they were go. They dont seem to want war. Who is a crimean is an important question. Its a in until a that has been ethnicallyally cleansed over the years. About forcibly removed one million of the ethnic population of crimea into siberia in 1944. Many of them died on the way and replace them with russians and ukrainians. Now its a mix in the dominant population is russians but there is also ukrainians and the number of tartars who have been coming back from side. To reclaim what they think is their homeland. Richardalkenrath, we appreciate your perspective. Right now, company news in nonukraine is, a rare miss for Warren Buffett, the measure of berkshire hathaway, much ofk has risen as the s p 500 is the first time they missed on their fiveyear target dating back to 1965. After ringing up record earnings last year, he says he will be looking to do more deals this year in the u. S. The microsoft new ceo is shuffling management. He has promoted mark penn to fulfill the new role of chief Strategy Officer. He is a former political strategist to work on the Hillary Clinton president ial bid. Skype is also with microsoft. American express debuts its first no see credit card. Fee credit card. They want to broaden its customer base. We have breaking news out oftyco. Unitll sell itself korean for 1. 93 billion units. To get the week started and there will be a financial effect. It will revise its eps forecast because of this deal. It now sees secondquarter earnings per share when you back out some items, or 8940 one Cents Per Share on the deal. Did you sleep last night . Barely. And 15 minutesur of the oscars and i learned the hard way that you dont watch the oscars with the twitter feed. Outking of which, it turns that a lot of the preoscar buzz was on the money when it came to the big acting awards. Slave won best picture. Brad pitt was one of the producers of the film. Earlier in the evening, best supporting actor was taken from the same movie. It also won for best adapted screenplay. One the most oscars of the night including that director. Who are you wearing this morning . Gbs. Wearing alan hit the ball out ellen hit the ball out of the park. She took a group selfie. Was causing twitter to be out of commission. People admitted they were hungry because they had been starving for an entire week. There it is, the oscars and we will have more on that. Markets are on the move in futures are 20. Coming up, the japanese fast looking tothey are expand its global footprint on an American Target and we will speak with the company that they are looking at. Bloomberg surveillance, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. Morning, everyone, bloomberg surveillance. Cory johnson is with us today. Are you on at 6 00 tonight . Bloomberg west will be. Cory johnson working a 28 hour day today. Abouthave been talking j. Crew flirting with the idea of going public once again. It is privately held now. A japanese clothing giant is as theyat the Company Might possibly i choir acquire j. Crew. This is a company, fast retailing, that has a number of rounds under its umbrella. How does j. Crew fit in here . J. Crew would be a great addition for fast retailing. Its biggest contributor to its revenue is what you mentioned first which is uniflow and j. Crew gives it a nice step up. It brings it up a notch. Compared to the gap of japan. There is a major deserve diversify outside its home market. Youre talking about 12. 6 oh yen dollars of revenue last year. Most of that, 9 billion, came from inside japan, which is a slow growth market. But i have to go outside and clearly, the company has designed global domination. The president has said he wants to make it into the biggest retailer in the world. Unlike many of the deals we have seen from Japanese Companies coming to the u. S. Or growth, what makes yanai different is that they are priced discipline. He will not overpay and thats what will make this deal from things like softbank coming to the u. S. Are there fundamental changes in business . Fast action is an unbelievable concept that is changing the entire retail loathing business. I wonder if that was it just changes in the way that j. Crew does their business. A bigashion requires change in fashion. They see someone walking on the runway in the lamb and they inerally have seamstresses the bowels of a shipbuilding new clothing so it will arrive in the stores. J. Crew does not change as much. J. Crew has changed a lot of its fashion. It has adapted that model of always coming out with new designs at the higher end. Retailers have to innovate as much as technology companies. With the Company Actually change, thats my question. . Ofanai is a big fan mickey drexler. They would probably keep him at the helm. How that would work out is tough to say. You are talking about classic personalities. The two men have a connection. Yanai has been in touch with j. Crew for a long time. Talks just turn it recently formally because there has been discussions about this Company Going public. It has five equity backers. That want to cash out. Any news on j. Crew going public . They want to be valued like ted baker which traits 17 times cash flow were just gap which trades about eight times. For a growthd retailer, thats what theyre going for. Thank you for the latest on fast retailing looking at j. Crew as a possible acquisition. More is coming up on bloomberg surveillance. Capital management is sending letters to fannie mae and requesting Corporate Governance actions. We will speak with roots berkowitz. Bruce berkowitz. This is bloomberg surveillance, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. Good morning, everyone bloomberg surveillance. Futures are negative 19 and the markets are really on a coordinated move off of the continuing news flow out of ukraine, russia, and crimea. Oil is joining the others and a more lengthy response to the geopolitical news. Ian bremer will join us in a bit. Vows tohinese president crack down on terrorism following an attack at a train station that killed 32 people. 10 terrorists stormed into the station saturday and attacked people with knives. No group is claiming responsibility for this assault. President obama meets with the israeli Prime Minister. The president urged Prime Minister netanyahu to make peace with palestinian leaders and he says he will not give in to pressure. The president will become more directly involved in the peace process. Nonstop knocked out the lego movie in the box office. Took in 20 million. Him on central park south, there is no way he is 61. He is probably older. He is now an action star. I read must read it and so did cory johnson this is a tradition in my house right and up on saturday morning before anyone else when a letter from Warren Buffett comes out and read it. I want to talk about the funky accounting he talks about. What does all that mean . Non gaap is the issues. Companies report that when they are trying to massage the numbers. It guesst money what company use that term the most . Ibm. These are corporations rebelling against conservative issues. The corporations are saying not dont look at our real numbers. They are smoothing it out to the bare minimum. I thought it was telling that Warren Buffett suggests a conflict. He is buying more ibm but also criticizing the accounting policies. I cannot say enough about this 21 page letter from berkshire hathaway. This is a primer on common sense. Coming up 12 million is how many people flooded the airwaves last year. Good morning, everyone. Cory johnson and scarlet fu are with me. Futures are 20 and that gets us to a data check. Everything youou need to know. A lot of risk aversion is taking place right you have a flight to safety with futures dan and european stocks falling and stocks fell down and the emerging markets print the 10 year yield is below 2. 6 . The euro is weaker versus the dollar. The ecb held its debt holders is meeting this week. A little bit of pressure has been removed because inflation came and above economist targets. By one pointup seven percent. You see it would rent crude. The yen has new strength. It is showing accord native response to what we see in ukraine. It is the most seismic geopolitical event since 9 11 ian bremmer on ukraine. Maybe g one toward or g2. Bremmer is president of the eurasia group. He joins us again this morning. You made major headlines this weekend,over the comparing these events to 9 11, discussed that point, coming up o the British Foreign minister said this is the biggest danger europe has had in the last 20 years. We are talking about the United States making it clear in no Uncertain Terms that the russians that if the russians in that intervene, the russians went ahead with nary a care. For the first time, we have the United States and the major effectively at our real loggerhead against each other. The europeans are largely on the american side and there is a breakdown in leadership in the geopolitical stability. The narrow, what is the attention point right now between ukraine troops and Russian Troops . How will that work out in the coming 24 hours . As long as the russians do not go into east ukraine proper, we will not see we will see a lot of tension but we are not going to see any active fighting. You have lots of very, very strong ukrainian nationalists that could easily undermine the Ukrainian Government or cause violence against russians in the region. They are unhappy about what the russians have done. If that occurs, it is likely the russians would go into protect them. Without the intention of Vladimir Putin going further into ukraine, it could happen anyway and Vladimir Putin is making up his mind. That could lead to violence. Lets bring in richard falken rath. We saw this other side of russia airing the olympics, why is glad they were potent willing to throw away efforts of polishing up russias image for the ukraine . Im not sure he cares that much about this image for it he believes in the traditional hard power and doing things in strength rather than through goodwill. He does not seem to care much for the hearts and minds of the world. They shined her in the olympics but when you get down to it, hes going to take care of business the only way he knows how which is through the unambiguous use of strength. What is his endgame . I dont think he knows yet. He is waiting to see how this go. I dont think hes interested in annexation of ukraine. Error ways for him to get what he wants out of the crimean. Short of annexation. Annexation is difficult to carry through. Look to Eastern Ukraine as the next flashpoint. Let me ask you about the tools the west has. Is all of the money that russians have and european tools the west can use as tools to influence the western governments . Because this is absolutely , after chechnya, the most Important National security interest russia has. There is nothing the west could do short of military troops which certainly they are not intending. There is zero percent chance of a head to Head Military conflict that would get the russians off the dime and consider moving out of crimea. That is the first point but the second point is that the europeans are not going to support that kind of behavior. The germans right now are blanching even at the idea of throwing the russians out of the g8. The notion that they would suddenly risk their economic relationship with russia or that would support the u. S. With serious sanctions, its not on the table. I fear the Obama Administration really overextended itself on this issue. You sent that out on twitter this weekend. Timothy snyder at your university had the best essay of the weekend, giving us a history. 10 days ago, northEastern Ukraine you mentioned as a place to focus on. With the new resurgence in the Eastern Ukraine, how close are we to a partition . How close are we to a partition of ukraine . Crimea is already an effective partition. Its one that many people will be able to swallow but maybe not the americans. The germans and others could probably get there. That