North korea underscored the warning of the state of military exercises by south korea and the u. S. This morning kim young uns regime fired two missiles in the sea of japan. They say its for exercises of a south korean invasion but say theyre prurely defensive. On saturday Chinas Central Bank fought back against an economic slowdown that cut benchmark Interest Rates for the second time in three months. And israels Prime MinisterBenjamin Netanyahu is in washington in advance of his controversial speech on capitol hill. Tomorrow hell press conference to delay any agreement on nuclear power. Netanyahu may argue it will threaten israels security and is speaking at the invitation of john boehner who did not consult the white house or president. Secretary of state john kerry insists theres no problem between the administration and israel. I talked to the Prime Minister regularly including yesterday. We are not you know, we dont want to see this turned into some great political football. Obviously, it was odd, if not unique that we learned from the speaker of the house that an administration was not included in this process. Olivia kerry says they agree on the key points that iran should be prevented from building weapons. John boehner will begin to get a bill to Fund Homeland Security department through september. Boehners original plan suffered a humiliating defeat friday and could not get enough republicans to agree to a threeweek plan and had to settle for a oneweek agreement. Most House Republicans wont vote for a bill unless it blocks president obamas executive actions an immigration. Boehner is downplaying the turmoil in his own party. We have members that disagree from time to time over the tactics we decide to employ. But remember, republicans are united in this idea that the president has far exceeded his constitutional authority. And we all want to do things to stop the president from his activity. Senator republicans abandoned the house approach and approved a spending bill without any reference to immigration. A crucial couple weeks of the city of sit grupe Group Michael corbath. Theyll announce whether to except the capital plan and corbat should be held accountable and analysts say he should lose his job if citi fail as second time. The financial crisis raised doubts about their stability. Its a question that comes up every year in march. Who will succeed Warren Buffett. In his annual letter to investors, he said Berkshire Hathaway board has the right person for the job. Charlie munger added to the speculation and said the two managers g. Jane and able are world executives who are in some ways better than buffet. Tom lets get the week started and blow through it quickly and get to the screen which talks to the economics. The euro is 1. 11. Hydrocarbons are soggy down to 1 . On to the next screen. Bring it on. There it is. The big 13. 34. Thats fascinating and is a major headline from last week that the volatility finally calmed down. The german twoyear, thanks to the negative team, negative 0. 23 on the german twoyear and on we go. Weakness with the rate cut this morning. Over to the bloomberg terminal. Brenda demanded i do this. This is inflation back to j. F. K. And l. B. J. The breaking of volcker. What people dont know is how much time weve spent under 2 . If 2 if a guy like calamiris put pixels in the air and pixey dust and came up with the number that 2 is the important number and weve been under it a lot as we look at the core p. C. Inflator. The fed is looking over their shoulder at congress and always better politically or has been until now to undershoot than overshoot but in theory at 2 and well blame charles for this. If 2 is the target we should see a nice wavy line above. But thats not what we saw. Consistent undershooting. Tom whats great about this is its march at bloomberg surveillance. Were done with the algebra in january. We need to move seriously on to what occurred in russia and another motion of friday. Will there be more violence after Boris Nemtsov was gunned down in moscow . The singular question will fervent supporters of putinism use violence to crush a small but quiet russian opposition. Tony is with Bloomberg News in moscow and joins us now. What do you know this morning about who killed mr. Mentsov . s guest good morning. Its difficult to narrow down the range of theories that are being presented about mr. Nemtsov assassination to a single group or cause. Theres a great sense of shock among then russians that someone of his stature could be so brazenly gunned down in the shadow of kremlins walls but no one has narrowed it down and the range extends from a claim he was some sort of sacrificial lamb by the opposition to another claim he somehow was the victim of islamic extremists because of his sympathy for the victims of the Charlie Hebdo shooting. Have we learned being famous is no longer a way to protect yourself as a russian dissident . I think thats the core of the shock here. I think russias opposition has operated previously under the assumption that while they risk imprisonment for standing up to the kremlin, no one was likely to kill them. Now its not clear thats the case at all. While people in the opposition ranks are not able to point the finger at putin and say there was a kremlin hand in this, they are certainly nervous that the kremlin and state media here has created an environment in which opponents of president putin are branded enemies of the state and that may well be provoking extremists to take things into their own hands. What does it do to the opposition . Does it galvanize the opposition and do you expect to see protesters swell on the streets of the country or are we talking about a climate of fear and you think people will retreat into the shadows because theyre so afraid of what could happen . Well, anywhere between the estimated 20 thousand and 50,000 people turned out yesterday on the streets in a march which went past the kremlin to pay tribute to mr. Nem, sov but there was a clear sense of nervousness and many were holding banners they are not afraid and felt there is a need to state that because there is a sense of fear and people are worried and dont know where the next turn will be and some of the option opposition fear russia is at a crossroads and one road leads to greater violence and instability and theyre urging everyone concerned to step back and think of the future of the country. Thank so you much, from moscow this morning. On to economics, an incredibly busy week for global and economic economics, culminating with a friday jobs report and go beneath the headline data friday. We begin strong in conversation with professor calomirs from Columbia University. Bob dahl, chief strategist. And lets begin with a collective great extortion. We have an economics guy and investment guy. Bob, are we in a bubble . All weekend, everybody, this question, this question. Are we in a bubble . Do you feel like the dow, the s p is bubblelike, whatever that means . Not at all. To me bubbles have overownership, overvaluation and overleverage. Stocks are not overvalued relative to the alternatives. Michael mckenzie saying this is the most unloved bull market since time began. Totally agree. The walls of weary are fierce and wonderful. So we see this. Lets bring it over here. You is euclidian march and within our economics, has janet yellen put us in a bubble . You cant say for sure whether youre in a bubble until after but im sympathetic to what bob is saying. I dont think that for example, rises in Interest Rates, judging from past experience, are going to cause the stock market to decline. I dont think thats sort of a test whether were in a bubble. On the other hand, you can look at Agricultural Land prices and say that maybe theyre in a bubble. So i think that thats not obvious that the stock market is the only risky asset thats susceptible to monetary policies distortions. What weve learned, is about 20 serious Academic Studies the past decade is that Monetary Policy does produce shrinkage in risk premium and this is a major concern in a lot of markets. Bob, are you worried when the fed does raise rates and will it suck momentum out of the rally . Im not worried. Stocks do well in the first increase and pause and have a little volatility and go up again. The fed raises rates, why . Because the economy is doing well and earnings is ok which means stocks probably are, too. A big part of Warren Buffetts annual letter this weekend had to do with whether or not investors are mistaking volatility for risk. They are obviously related and overlap. I like to say i love volatility. Ive seen far more to the upside than the downside to my career. When i have volatility im able to buy things at a lower price and sell things at a higher price than i thought. Volatility is not so bad. We talk about the feds actions and affect on the economy as we see the german currency dip to negative territory and hang out, but its never been better. Well, i think part of what you are referring to, though, is the difference between germany and the euro zone. That is the negative Interest Ratesdz in germany are really a reflection of its relative strength, relative to the rest of europe as a sort of flight to quality play and think thats the same story in the german stock market. Lets get start on the week here as we get a lot of Economic Data across all of Bloomberg Television and radio through the week. Its not just the german currency, but the stocks are off to the best start of the year ever. Charles calomairis of Columbia University and bob dahl, youre staying with us for the hour as we head to break. We want you to answer our twitter question of the day, has Speaker John Boehner lost control of the house . Tweet us at bloomberg surveillance. Good morning, everyone bloomberg surveillance. Brenden has our top headlines. In moscow thousands marched to honor the murdered political activist Boris Nemtsov, a opponent of russian president Vladimir Putin. North korea is making noise in the International Community and launched a pair of short range missiles towards the sea of japan and kim young union coincides with the start of military exercises by south korea and the u. S. S. Also on the bloomberg terminal, the violence in Eastern Ukraine claimed more than 6,000 lives, Government Forces have been fighting a year. The conflict led to a merciless devastation of civilian lives and infrastructure. Hillary clintons longawaited announcement is reportedly near. The wall street journal says she might make her president ial bid official as soon as april and would ease uncertainties within the Democratic Party and speed up her fundraising. On the republican side, a president ial announcement is also expected soon from the Florida Center marco rubio. The gasoline honeymoon may be over for u. S. Drivers. Triplea says the National Average for a gallon of regular is 2. 42. Its jumped about 35 cents in the last month. Industry experts blame refinery issues, not the cost of crude. Those are your top headlines. 52 members of the Republican Party broke ranks over funding for the department of Homeland Security instead of a threeweek stopgap, Speaker Boehner got only a oneweek extension. Nevertheless he insists the party is on the same page. We do have members that disagree treatment over the tactics that we decide to employ. But remember, republicans are united in this idea that the president has far exceededed his constitutional authority. We all want to do things to stop the president from his illicit activity. Our chief washington correspondent peter cook joins us. Two weeks might not sound like a big difference but obviously this is politically embarrassing. Is Speaker Boehners job safe . You know, theres got to be real questions now within the peb ranks of John Boehners job. Theres no immediate coup attempt and some of the people that might lead that attempt said over the weekend John Boehners job is safe for the moment. This is a big embarrassment. This is a big deal in washington. Because it shows how tenuous his hold is over the House Republican conference. And theres a really good chance well see a replay of it on friday unless john boehner decides to blink and bring to the floor a bill that funds the agency through the end of september and has nothing to do with the president S Immigration executive action and what democrats say he assured them hed do. If he does, hell have to pass with democratic support and once again resist the ire of conservative. What happens in the next five days . Tonight you have a vote in the senate to effectively shut down John Boehners plan to try and have this Conference Committee vote and try and work a deal that way. Youre going to see Benjamin Netanyahu on the floor of the house on tuesday, that in and of itself is already a divisive event here in washington. Now youll see the funding fight play out one more time on friday. This is going to be it was a messy day on friday as john boehner said and will be just as messy a week potentially. John boehner has to get his ducks in a row and right now doesnt have them and theres a real split between the few moderates in the House Republican conference and conservatives who are plotting the next fight down the road. This tells us a lot what might happen with the debt ceiling fight and highway funding and could be an ugly, ugly stretch here. Peter, we watched this dance before and boehner hems and haws and brings a bill to the floor and democrats support it. Why would this be different than the other times . Because the difference is this time he wasnt on the same page with the republican leader in the senate, Mitch Mcconnell after basically the two said they would avoid these kinds of shutdowns going forward. The fact he didnt have it coordinated with mcconnell tells you that this is john boehner looking out for his right flank without really figuring out how to get things done in the end. And that is the difference here. It really tells us whats going to happen in the future. You absolutely nailed that. Stan collander was on twitter saturday suggesting what you said that this really was about Mitch Mcconnell. Will you explain to our audience why the Senate Majority leader controls the future for the speaker of the house . Well, the Senate Majority leader can only get so many things done with 54 votes in the senate. And he took that message to House Republicans when they went to their retreat in hershey, pennsylvania, which we attended a few weeks back and explained listen, i can only get so much done. Work with me here. This is not what happened with the department of Homeland Security funding and will be the same sort of thing playing out with the debt ceiling and highway funding and with compare reimbursement. Every issue will require Senate Passage as well and House Republicans have to acknowledge that and so far are not and thats the problem. Youll have to forgive me and i spent too much time watching house of cards. But can Kevin Mccarthy or anyone up high that boehners john is at all in danger . No. They seem pretty united at this point in terms of the leadership. And they rallied around this weekend and were all talking off the same talking points. But there are republicans in the house who clearly are toying with the idea theres a notion of vacating the chair which dates all the way back to Thomas Jefferson era. There is a way to remove the speaker of the house. Its complicated and highly unlikely to happen but the fact people are talking about it should give you some sense about John Boehners job security. Every time peter cook speaks about this stuff, i learn something. Its great. Its fabulous. That is the goal. He hasnt even brought up the Washington Nationals yet. Theyre going to be good. Theyre going to be really good. Illuminating as always. Theyll be better than the house of representatives. Peter, thank you so much. Peter cook our chief washington correspondent joining us from d. C. A perfect segue to our twitter question of the day. What do you think, has boehner lost control of the house . Tweet us. This is bloomberg surveillance. Were streaming on your tablet and phone and bloomberg. Com. Happy monday. Bloomberg sur surveillance. Oil is down in west texas intermediate and we say goodbye to you monday morning. A busy week of economics. Lets get to a mustread on the International Relations known as greece. In the telegraph its a brilliant essay fro