Pessimism index. Maybe it is getting a little better. The job openings are coming out about 10 00 along with wholesale inventory. Earningsmerican eagle and Dicks Sporting Goods before the bell and after the bell, caesars entered 10. This is significant three years ago today was the japanese the japanese tsunami. Thats the news. Lets do it data check. 2 and the rest are nowhere. The Foreign Exchange has a little bit of action with the japanese yen weakening. Paying attention to the ruble which is a little bit weaker as we go to the president s meeting with leader of ukraine tomorrow. 108. 50 ones cents. We did not have to scour the papers too far. On all the front pages, the lack of any sign of the missing malaysian jet was remarkable. We still dont know anything for days after. All the debris and oil slicks that people spotted turns out that was completely unrelated. The search involves nine nations and has gone beyond the flightpath and now extends to the malaka strait. Authorities are baffled. We have descended on a quiet. Here is the letter out overnight from Malaysia Airlines they dont know what to say. Is it a crash . They say they are even bringing the search area back overland. There is also the mystery of the stolen passports, one of which was apparently used by an iranian and who was not connected with the terrorist group that wanted to move to germany. Part of our military budget for tax the seas and skies. Protects the seas and skies. There are vast areas of air and sea in the world that are not controlled. An entire aircraft disappears . Has beenardalkenrath with us so much. He absolutely nailed of this yesterday, the idea of the passport issue. At least one of the passport issues has been resolved. We are trying to find out more area our second frontpage story is back home because congress is looking into why General Motors talk so long to recall cars with faulty ignition switches. The house energy and Commerce Committee said it is launching an investigation and jim is recalling 1. 6 million cars. They have been linked to at least 13 deaths. This is 20052006 . Yes, this is not an ignition switch in 2011 . Thats correct, the ignition switch that would hang off the steering column in the car, if you knocked it in a certain way, it would turn off. This is when pushbutton ignition was new. Imagine you are driving and your knee hits it and he is and it is not working. This is the first major test for the new ceo of General Motors. Gm has a Committee Culture that impedes the flow of information from the engineering ranks to the corner office. This will be her first test. She came up through the engineering ranks with anyone can unite these different aspects of the company, presumably it would be her. There is the ongoing crisis in ukraine. The military of ukraine is testing combat readiness. 20,000 people may be mobilized to protect its borders. Shows noched russia signs of yielding. There are 19,000 Russian Troops in crimea and that region will vote next sunday on whether to join russia. Is in key distinction theory, there are 19,000 Russian Troops but they dont admit they are russian. They have removed them russian insignia and have no identification. Theyre just wearing the tease that looked curiously russian. Many countries have said whatever vote comes out will not be recognized by international law. This is as the u. S. And eu threaten sanctions. And the new Prime Minister is coming to the white house tomorrow. Those are the frontpage stories. Lets continue with the Malaysia Airlines mystery. The former Deputy Director of the faa joins us. When you look at the Media Coverage and the quiet over this crap, what would you focus on over this crash, what would you focus on . The thing you need to focus on is this will take time but this will be found. There is a large search area, it takes time to cover it. There is activity two prongs of activity one is the search of the others looking at everything behind the scenes of this flight. They are right now looking at any data available. These aircraft typically send back position parameters. Im sure they are looking through those files to see if they can find any kind of anomaly. Did you find it of interest ant the pilots were of such age, was that of interest to you . Pilots thehese captain have a lot of time in the airplane. It is not difficult to transition from one boeing airplane into another or even an airbus to a boeing. Not a highlight i would focus on. Everybodyng that keeps making comparisons to is the air france crash of 2009. That was in deep waters in a remote location but this would be in Shallow Waters where presumably you would see signs of wreckage. What is the biggest distinction . It will make it much easier to find the black ox is the black ox is. They have a pinger that sends out a signal. That will be easier to do tech and that waters are in the hundreds of feet instead of the thousands of feet. It increases the probability of finding this wreckage. Ofisnt there some sort homing device connected with the black box to find it . There is, there is a signal that goes off. It is alled a pinger, signal that will be met for a long. Of time. It can be heard underwater from miles away. There is a good chance that they will find that very soon. It is unthinkable in that Shallow Water that they would not find the black ox is. Boxes. Thank you very much. There are other events going on. , known for an analysis of the internet and Christopher Barone is the best Technical Analyst on the street. He and i strongly agree that the only way not to lose money is to look at the trends in the market. Lets get a little bit from both of you. Are you long or short right now or neutral . I am long but i think we have to be very specific what stocks we own. I dont think the market call is too relevant for the next couple of months. We are getting for the end of the attractive season and into the spring months where things seem to be more difficult. I think we need to focus on the areas of the market where trends are best like tech and health care and industrial. Tech is the boom business. We are focused on facebook and twitter ipo extravaganzas and you are focused on the doing of the privacy debate. What are you focused on now . Security which means many things, more than just privacy. People dont know that they are so out there. We talked about social media and we share a lot of our lives of our family and friends and our photos. We are all out there and we dont have control of that data. You spent more than 25 years in mobile software technology. Manager at skied base and you were there when john chen was there. What can he do to turn around the company like blackberry . Willas an optimizer and take a business and drive out the unnecessary costs and focus. He is an optimizer. Seeingan adept touch at this. I suspect and i see the exact same thing happening at as happened at sky base. Here with the markets c in a basichurn, the ruble a little bit weaker on this weeks events in ukraine and crimea. Lets get to company news. Audi to catchfrom bmw. It will introduce 17 new or revamped models this year as it tries to gain ground on its rival. Ofhas an electric version its sports car and the audi ceo says the sales in china should top half a million vehicles for the first time. We will be so aching with you will speak with the ceo of audi in the next hour. Meantime, bill ackman is set to launch another volley at herbalife. He plans an afternoon presentation today focusing on them in china. He says he will show how herbalife violated chinas laws on direct selling and multilevel marketing. Blackstone may bid for an auto parts maker. To the tune of 5. 5 ilya and dollars. Owners of gates and working for a sale of the company or an ipo and bids are due later this week. For 2014, thetory idea of private equity coming in and competing with normal transactional mergers in an industry group. We had an interview recently on industrial sell side. The biggest problem is the black stones of the world. They have a lot of cash to deploy. If you are a financial buyer, you can so make the numbers work. Coming up, we will discuss how teenagers arent dumping Abercrombie Fitch and American Eagle for other brands. What does this mean for retailers and their strategy and their stocks . This is bloomberg surveillance, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. Everyone. Ng, an important interview this afternoon peter cook will interview the senator from florida, marco rubio. Look for that today at 2 p. M. On bloomberg television. This is of quote bloomberg surveillance. Lets get started on stores i dont go into. Retailers have been underperforming the whole space which means once highflying stocks like American Eagle and Abercrombie Fitch a need to come up with a new strategy. Fourth quarter earnings for have thefitters smallest fourthquarter gain in eight years. The outlook is pretty cautious. The company talked about earnings being cautious and did not give guidance, first order margin for the urban brands remain low. It is more than Urban Outfitters . They have anthropology and others but the urban brands they are focused on. Testingany says it is pickups and stores and sameday shipping. Secondt is not until the half of 2015. Thats a long time. It seems like it is up and down. Chris verrone is with those. How do you buy dips . The question is, what is the trend . The problem i have with Urban Outfitters or Abercrombie Fitch is the trends are not very good. All the moving averages are downward sloping. The longterm trend has rolled over so we are skeptical when we see earnings like that. Gary kovacs, this goes to the security issue and retail is front and center like target. Capturing both at the point of sale as well as through wifi, it is hard data. Explained the wifi question. We walk into a store and theyre smart phones are looking for wifi signals and send a ping and stores use that to track where we walk through the aisle. Are you kidding . It is huge data. The infrastructure is in place for these retailers to do more with technology but you have Urban Outfitters saying they are testing pickup in the store that will not happen until the second half of 2015. Why is there a huge time lag . We are add and we are the mtv generation. From the stores, its about targeting you before you get into the store. That is what the data is all about. They can tell through your mail and cookies and everything on your computer and you are a former abercrombie model previously maybe in a previous life. Where are they in this . Theory is my in offense of weapon but it might actually be my greatest weakness, right because this is a leaky device . Every second where you go. It follows you wherever you go. There is more information that you are presenting. How do i make it one way . How do i make my phone so i take the information in but you cannot take it out . There are tools to manage that. So wesumers, it is scary have to make it simple and there is a lot of technology where we have to educate the world. American eagle outfitters will be reporting today at 8 00 a. M. They said fourthquarter earnings would be at the lower end of its range. What will happen with the ceo . They have an interim ceo and the new one needs to come in and set a direction. Retailer is uggs 18 retailer . It is a musthave for the winter but not necessarily after that. They expect first order profits to be well below and toward the low end of projections. Im avoiding retail. What about walmart . Even before the security stuff, target was still a week picture. That just added to its problems. We think there are sales here. We go from Abercrombie Fitch, neutral to buy. We will get over there to the corner of 66 and 5th. Coming up, we will talk about greed and envy behind the biggest wall street scandals and that brings our twitter question of the day this is bloomberg surveillance, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. Good morning, everyone, bloomberg surveillance, is facing hisie toughest grilling in parliament. The bank of england mark carney is being questioned on bank rigging. Oficials were aware currency manipulation almost eight years ago. The bank of japan is sticking with his record Bond Buying Program. They are expanding their base by 677 billion dollars annually and bracing for its first tax sales tax increase in 17 years and that could trigger the dq the deepest contraction in the economy since march of 2011s earthquake and thats why they will keep buying. In sports, Manhattan College is going to the ncaa term and for the first time. They held off a late rally by their rival iona. Was 2004. Trip i was not aware of that. They tipped the opening team and i lose right there. Dont come to me on picks for the sweet 16. It is painful. Out of crimea, the assembly posts a declaration of independence on that website. Here is our morning must read. I pick something from the wall street journal. It has to do with income equality in the bay area. That is clearly not the sentiment from a lot of people in the street on the street in the bay area. Is it a legitimate tension . Its legitimate. The google bus thing i dont get because the alternative is 5000 cars. We cannot park or drive. I dont want cars so the buses are good. Income inequality is real. Many people made a lot of money and its outside the areas where people live their lives. A family of four cannot afford the San Francisco 49ers football game. Thats right. We will be right back. Good morning, everyone, bloomberg surveillance. Some headlines out of interpol they say the two people traveling on this passports on the malaysian flight that has gone missing probably were not terrorists. Both men were traveling on stolen passports and work iranian. They were probably not terrorists but they were iranian. Vietnam is expanding the search for the missing plane further east. They will go farther out into the south china sea. We continue to monitor this. There is a lot press conference taking place now where they are reiterating that they are stumped and do not have any leads or any sign of the missing jet. The debris they found has no link. What they thought was a life raft was cable covered inmoss. It is what an it is one empty leave after another. We will follow this all morning. Lets do a data check. Its a quiet data check with futures 2. About something that everyone is discussing in technology, the internet of things. It makes everyday devices smarter like smart watches and smart cards and smart appliances. What about smarter malware. . Yourker could break into information. Avg is making a big bet on mobile security. Joining us as the ceo of the company, gary kovach, the former verroneozilla and chris is with us as well. More cities than people were connected to the internet. An opportunity for hackers and people who want to access your data and Security Companies like adt . 50 alien connected things today. We are on our way to 1 trillion and we are sharing way miller of our lives, our health and families. Its all captured somewhere. Many factors of the device will have to lace a priority on security. I think it is early and that has to happen. Consumers dont know yet what to demand. Do i demand better passwords them 1,2,3 . Bowtie. My favorite there are so many to choose from. The industry has failed. There are a lot of password manager programs. They have not made it simple enough. Why can it be simple to get a password that helps security . It was not a priority and people did not feel the pain. The majority of people hold their password in the notes field on their phones. It seems like Many Companies are going toward biometric so why has that not been incorporated into passwords . It is ended has but it is still relatively unreliable. Leaving somebodys and tired a to and their access to that which is unreliable in fairness, we have this finger thing on the terminal. Ands the only way in it has been working well for several years. Why arent more people doing it . We have a battery issue and the biometrics are power intensive. A mobile device, that sucks a lot of energy. Electronic devices might be new for the consumer but arent governments and municipalities already operating Smart Metering systems . What are the worst practices we can learn from them . The data is going on encrypted. Inot of the Smart Devices your car, a lot of the traffic applications on your phone or sending data on encrypted. Anybody can pick that up. Thats what we were saying about the phone being leaky. What if your Company Comes out with a new encryption software, how much battery juice will that take . We dont run on the device and brought it in the cloud. Its so it doesnt run down your battery. When you look at twitter and facebook and their success, what would be your advice to mr. Zuckerberg. . Data privacy and Consumer Privacy and Consumer Choice and transparency is critical. We often compromised. Where to have no idea go on facebook to tell people i dont want things to know, its ridiculous. If you dont want something about you to be public, dont post it. You mean the photos from this weekend . Everything on the basic level is free but any extra services will cost you . Correct. Should the social networks exercise a creamy a model . I think it will all go the advertising route. It works very effectively. Its a Destination Resort for security is not a Destination Resort. It starts with telephones thateing has a new phone is in theory impenetrable. What is your take . I think therell be the