In the nonmanufacturing composite will report numbers. Not a lot of earnings today. Of that, withside the adp report, we begin with the American Labor economy go into a 30 friday morning. Betty liu will pick it up with in the loop on friday. Look at the data check. A big move yesterday. Subdued today. Still living the joy of a wonderful tuesday. 10 year yield back to 2. 69. Scarlet, you are rudely interrupting. We have the bank of england coming out with their interestrate decisions tomorrow. That is tomorrow. A little less pressure on the ecb doc tomorrow. And we have the draghi press conference. And john kerry meeting with lab rock in paris this morning. Let me give you a shot of the ruble. Heres what putin is worried about. A week in russian ruble. Here is the panic. Then we rollover. We really have not come in all that much. That is an elegant chart. By no means technically are we long ruble, strong ruble. The good news in the last 24 hours. We have look at the newspapers this morning and the webpages. Heres the front page. We did not have to look far. Ukraine and the crisis there. John kerry in paris meeting with russias foreign minister Sergei Lavrov who said yesterday the threat of sanctions will not change the russian position. There are reports the white house will impose economic sanctions on russia sometime this week. We will go to paris in a bit. The former managing director of the im at said yesterday, his idea of a sequence. I thought he revis eyes this is a process, a sequence. It is no surprise on neutral territory in paris is where the meeting is. Rocks and russia says ukraine owes gazprom 2 billion. They have an option and they took the option and is it, no, you cannot get white walls with your tires. And that things are on the hook as well and the banks are on the hook as well. And the debt in russia and ukraine is more than just a gymnastic debt, it is also debt they hold abroad. A domesticn just debt, it is also debt they hold abroad. White walls, really . Said they gazprom could not have the option. And you said 2 billion. China, the annual meeting of the legislature again today and the government is keeping his 7. 5 rose target for this year for the same as last year. Willremier said that it promote jobs. China needs to clean up the pollution, try to avoid an unprecedented debt search. You heard about the Chinese Solar Company that signaled yesterday the risk of what could be the first bond default in china. The Banking System as well. Help me. We look at the terrorist attack over the weekend. How does that color domestic and regional chinese politics . You can bet it moved to the top of the agenda as well after the mass knife attack. They called it chinas 9 11. Do you have a back story your two of this political meeting . Is there a backstory . It is holding in line to what they agreed on, which is focusing on shifting the economy from and export investment driven economy to more on domestic consumption. And Solar Companies . No. Are they discussing pollution . Definitely. People in china are discussing it and they cannot avoid it if they wanted to. A bit of a shameless plug. Bloombergs annual rankings are out. 1. 7 billion in fees last year. It is picking up pace this year. Last are, companies raised 56 billion in ipos. Lets remember goldman getting the twitter ipo. It may be the biggest part of that. After the facebook flop of an ipo, twitter giving goldman a lot of advantages there. Goldman m a. And goldman in gpo will cofound mollison company. Doubledhat the firm last year. We have a perfect guest. And we cansberger talk about this with him. Erik schatzker will join us later in the hour on this. A big french bank. We can talk about that later and the great challenges foreign banks are having with new regulation. Is the solution to smart entrepreneurial people on wall street to just do it myself . Sover . Days of ken moeli i cant speak to that directly, but i think entrepreneurship, there is a place for it on wall street. The regulatory overhang can be burdensome to some banks. We will see. I think the jury is still out on that. I agree the jury is still out, but all in all, it was a big up year for the ever cores of the year. With the stock market up 30 , no doubt a lot of private Equity Investors took that opportunity to cash in. The private equity space is a little different that maybe some of the core Investment Banking activities that other banks engage in. Valuations, i think they change all of these businesses at some point. None more difficult than private equity. Without a doubt. It is tied to a lot of bond investors. Equities are fully priced is not overpriced they would argue that. It seems to be disconnected and i think that is waitressing private equity take advantage of the opportunity to cash in. Timothy bitsberger with us. About safek to them havens in a bit. She is on the road. I think it was washington, new york, kiev. If it is wednesday, msp paris. The secretary of state will meet with lavrov in paris. Good morning. Good morning. How sudden was this . Was this an orchestrated event or spur of the moment . John kerry was planning all along to come to paris today for meeting of Foreign Ministers relating to support for lebanon which relates to the syrian crisis. They were brought together rather suddenly, various meetings on the sideline of interested in parties interested parties in ukraine. We saw secretary kerry, secretary haig of u. K. And also the cranium counterpart. You are perfectly advise on this. Give me account. It is a g8 . G7 . G3 . Are we this morning . It depends on who youre talking to. The u. S. Is still mad about russia is doing. There have been calls from corners in washington about trying to expel russia from the g8. But im not sure whether it will go that far. What john kerry did this morning was he referred to this budapest memorandum signed back in 1994 by the u. S. , russia, u. K. , and ukraine when ukraine gave up their stockpiles of nuclear weapons, which you may remember was the thirdlargest in the world at the time. And john kerry condemned russia, in his opinion, for not sticking to the parameters of that declaration which were to protect ukraine from any threats. We think it is a problem. To what extent will Financial Aid and dollar amounts be discussed . Russia saying ukraine owns gazprom, which is the state controlled energy giant. They have already committed some aid to ukraine. I think that is still to be discussed. Later today at 5 00 p. M. Paris time, john kerry will meet with secretary lavrov of russia, so they will have a chance to talk about that then. At 3 30, there will also be a meeting on the sidelines to talk about ukraine. Russia has been offering money to ukraine, supposedly the metallic them with the gas debt supposedly, to help them with the gas debt. Much,ira, thank you so traveling with a secretary in paris, france. Lets get to company news. We start with Standard Chartered bank. Posting a profit for the first time in a decade. Business in south korea we can. Hey broken its korean business because the bulk of its profit from the asiapacific region. A drop in the ruble slowing adidas down. Forecasting fullyear profit as much as 17 below analysts estimates. They blamed weakness in the ruble and argentineover the shortfall. Apple its a new cfo. Your oppenheimer retiring from the post at the end of september. Oppenheimer has been with the company for 18 years and oversaw the surgeon apples cash flow 2004 to 158on in billion today. That is todays companies news. How legendary was mr. Oppenheimer . What he did it apple was fairly amazing. You could look at the 158 billion in cash that he is in managing and say, this is the biggest money manager in the world. He just hasnt done a lot with the money. Tim cook is a lot of credit for what he did as steve jobs side, managing inventory and these Amazing Products as they grew like the products have an history of technology, without big hiccups in inventory or the problems does or other big problems. But oppenheimer should get credit as well. Busy morning. You know who else is sitting on a big pile of cash . Tobacco companies. Will ecigarettes stuff out big tobacco . Like that, snuff out . This is bloomberg surveillance. Good morning, bloomberg surveillance. Ben hurwitz will join bloomberg 1 00 p. M. Go to eastern time. His new book. A person of Silicon Valley. Watching the golden state warriors, which is a positive thing versus the new york knicks. We are putting up with cory johnson this morning. It is not so bad. The topic is ecigarettes. Speculation of a big deal in the works. The reports that Reynolds American is going to make a bid for its rival an early adopter when it comes to ecigarettes. A deal between the number two and number three players could top 20 billion according to the financial times. We know reynolds hired lazard according to the news, but it is not sure if it is the entire company. What i found interesting, Reynolds American is 42 owned by British American tobacco in a tenyear moratorium preventing them from increasing stake in rentals and reynolds ends in july. It comes as smoking rates in u. S. Are falling. No one smokes in california, do they . I see smoking and frequently when i travel, im shocked from a particularly in new york when i see smokers everywhere. The ecigarettes phenomenon is amazing. You cannot even smoke them inside in ballet anymore. I was in provo, utah last week and i was in this hipster and there were three High School Girls in their outside smoking ecigarettes. Theres not a lot of tobacco there, so i found that is interesting that is the trend there. Bloomberg industries will give us perspective. Have you tried the grape, apple hookah ecigarettes . Ive not tried that. It seems the flavorings, the options keep exploding. Lets cut to the chase. Are these things good or bad for you . It depends on who you ask. If you ask a lot of health advocates, they would say it is a lot better than combustible cigarettes. If you asked some of the critics, they would say because it contains nicotine, it is probably something that we want to watch, particularly when it comes to children. Can, cigarette consumption and smoking rates in the u. S. Have fallen over the past decade but the players and Tobacco Industry really havent changed out that much. Or market share has not changed, either. Why hasnt that changed . Good question. It is probably because high barrier injuries is the easiest answer. Youre nus, it means accepting a lot of legal risk to compete in the u. S. , you are accepting a lot of legal risk, you owe billions of dollars every year depending on your market share to the state attorneys general. There are high barriers to entry. That translates for investors to high return on stop performances have done well. Can we have a moment while we talk nicotine . Im going to have caffeine. Youre not allowed to have ecigarettes. My word, im having caffeine, i guess im a bad person. Tim bitsberger with us from bnp. Is this a domestic story or are ecigarettes of french and emergingmarket story . They are a global story. Im estimating around a 3. 5 billion industry today. The u. S. Accounts for about half of that business. Virtually, all of the large tobacco manufacturers including Philip Morris international are looking to ecigarettes as basically the growth platform of the year. Given the vast distribution of these companies and what seems to be a growing demand for safer alternative than combustible cigarettes, it seems to be translating into a good opportunity. You are an expert on regulation and financial markets. Do you see the washington regulation of tobacco transferring abroad to other countries . I would doubt that. The contentious nature between financial regulation, between the whole sovereignty issues and what regulators in charge of what it what country, i would be very surprised if that were to spread international. And tobacco has to look abroad if the u. S. Is shutting down. Paris several times a year and it amazes me how many street corners so many people are congregated smoking cigarettes. I used to smoke gitane. They are just as vicious. Go back to your coffee, tom. I need to ask about regulators. Toording to some, likely approve a deal between reynolds and lorillard, but the fda still needs to make a decision on ecigarettes. Who do we look to first for some kind of clarity . Both of those points are valid. The u. S. Cigarette market is highly concentrated already. The top three players are 85 of the market. A combination of those would mean the top two would control 85 of the market. Looking at the u. S. Beer industry, the top to control it up or send, i dont think that will into the conversation. In terms of the fda, the fda is supposed to come out with decisions any day now, although theyve been saying that for a while, regarding how it will regulate the mental industry as well as how it will regulate the ecigarette industry. A lot of people are waiting for a cue from them. Ken shea, thank you so much. Very valuable effort here. We tried the ecigarettes here. I found it very uncomfortable. You were buzzed at 4 00 in the morning. Andng up, leo hindery former chairman and ceo of yes network. The leads us to our twitter question of the day we want to hear from you. Good morning, bloomberg surveillance. I am tom keene with cory johnson and scarlet fu. I go straight to the New York Times for the morning must read he suggests they expose putin possibly miss by going after oil and gas. Certainly, one idea. Quick i thought the press conference shifted the dialogue yesterday. A lot of people were stunned at the body language. Look how casual he is right there. Making references to yanukovich is alive and doing well. He isnt like what we were used to. And the turmoil rock n roll and. Kind of unwound a bit. Where are investors parking their money Going Forward with this big change . We will talk about that next on bloomberg surveillance. Good morning, bloomberg surveillance. With cory johnson and scarlet fu. Features are quiet. Looking at the data check, euro comes back. The crisis of 130 the crisis of a few days ago. Calm in the market. Lets go to gainers and losers. 4 andcomm rose almost boosted its buyback plan. The notable decliner is radioshack, down more than 70 . Company reported a wider than expected losses and will close up to 1100 stores in the u. S. This year. Theyve been Closing Stores like crazy anyway. They made his big bet on cheap cell phones. Revenue growth that gave them coming earnings. Tremendous trouble on the storefront level. Theyre trained to read energized their stores and reformat them. Ring back marilou retton. She was before your time. Yes, i know. Ive seen youtube. She probably shopped at adidas. This is an interesting story and ties into not only ukraine and the geopolitics, the slowing global economy. Adidas and the sharp competition for running shoes. To be blunt, there were significantly impacted by Foreign Exchange movement as they reported earnings come as a much of their business outside germany and outside western europe, but joining us now the adidas chief executive officer from the companys World Headquarters in germany. Good morning, sir. Good morning. It is the most interesting story of what adidas is doing. How bad was the currency effect how difficult is a strong euro for adidas . First and foremost, we have to say operationally, we had a good year 2013 but of course, as you have mentioned already, the currency to valuation, especially the emerging markets turkey,sia, india, tralia cost us a lot of therefore, currency neutral. We have been very good. But when we take absolute numbers, results have not been as brilliant as currency neutral. Most funas to be the time for you, sir, as you go some 98 days away from the world cup. You have been with adidas its 1987. How much fun are you going to have in brazil . I am very much looking forward to it. I am a passionate football fan and football is heart and soul of the adidas brand. We are the sponsor, the licensee in part of fifa. Y have made great teams they have a great teams and formidable players in brazil. Contemplate ethical start in 98 days from now and we definitely will see adidas as the football brand during the world cup. What is the dynamic right now in football in the English Premier League or the United States, argentina or brazil . What is the dynamic as you compete against nike and reebok . Is it paying ever more and more money to celebrity foot all players or is there another angle . There is no doubt that football is by far sport number one in the world. Football is by far the most has the most followers. I am meeting soccer in your terms. The key players in the key teams have their price, but i definitely believe the suppliers who are spending money to outfit teams and players are getting their money back because it is a great exposure of the teams and players. This is a fierce competition. We are the number one in football and definitely will keep this position. Greatsk this with respect, does it drive you nuts that american say adidas . Ouro, as long as they buy products, they can pronounce it however they say. Spirit. Love it. Thank you, sir. Hope to see you when you are in new york next time. European ceo off script. He was great. You got him excited about the world cup. We want to bring in our guest host Tim Bitsberger. Are you a football fan . Definitely. Have to be. Lets go from football to the world of the markets. With most markets appearing to shrug off the tension between russia and ukraine, looks like russia safe haven was a little bit premature. The safe haven trade, is that still going to be a theme for the First Quarter 2014 . I will phrase it differently. I think there is a lack of conviction in the marketplace. Investors since june when we had the big selloff in bonds, i think investors are still unsettled as to how the world will unfold. Theres question about growth worldwide. Our forecast is the developing markets are probably marginally positive. Taperingthe affects of on the negative side and on the plus side, less physical drive. I think over the past few years, the larger banks have taken risk off the table. In the last couple of weeks, w