betty: from bloomberg world headquarters in new york, good morning. we are about a half an hour into the trading session and stocks are higher after equities rallied around the world. we are coming off the highs in the session. stocks are about the most in a month. reporting its weakest full-year gdp growth since 1990, however the data exceeded the most pessimistic of forced -- of forecasts. they taught their profit forecasts, lots of cost-cutting going on in the fourth quarter for bank of america. let's head straight to the market desk where we have the latest on the markets and we are following this global rally, but not as strong as we thought. >> we are following it and offer what happened on friday when we saw that selloff across the board from the global routes and

look -- and let's look at the terminal. the dow is up the most, about three quarters of a percent and the nasdaq is up is -- up about a percent. china's fourth-quarter growth slowed to its lowest rate since 1990, six point 9%, you would think that would pull the markets down, instead what is happening is the expectations of stimulus may take effect out of beijing and causing the rally around the world. will we are also seeing is what's happening in crude, we are a sharp drop off right now. it is currently trading at $28.83. clockbefore the 10 a mark, crude oil touched its lowest since october 30, 2003

and that is a fresh new low. lowestould close at its if we had kept on going. the iea says the world is drowning in oil and that iran could add 600,000 new barrels of oil by the middle of this year. commodities right now, copper futures as well as the index, these are up across the board following that rise in oil. copper futures up by two and a quarter percent thanks to china. betty: what about the safety trade? ramy: the safety trade -- let's take a look at what's happening with gold. gold right now, futures are down by about 4/10 of a percent. changing,finitely even as we speak with the market open. ..s. 10 year yield is up

about seen this up by five basis points earlier, today. betty: thank you so much. let's get to first work news. -- word news. vonnie: the battle over president obama's immigration reform is heading to the supreme court. the justices say they will hear the challenge to the president's plan. a program with spare up to 5 million undocumented immigrants from deportation. the challenge is from 26 states who claim the president by step congress. helping migrants is spreading. police were out there with eggs and fireworks in the netherlands.

in london, parliament debated for three hours whether donald trump should be banned from the u.k.. british lawmakers first acknowledged they had act -- no actual power to ban him. the ban was brought up because of donald trump's comments that muslims should be stopped from coming to the u.s. michigan's governor is the target of angry demonstrations. protesters chanted yesterday ,utside his home in ann arbor saying he should have done more and sooner about the flint water crisis. the water was poisoned with lead. guitarist and singer glenn frey of the eagles has died. they had four consecutive number one albums. butgroup broke up in 1990

got back together in 1994. he was 67 years old. bloomberg news 24 hours a day. thank you. it has been a slippery slope for stocks this year so far. the s&p is trying to snap back from lows after china's report on economic growth eased investor concerns, but is a wealth market movement any -- really overblown? from pimco's headquarters. i'm getting whiplash watching these markets, where we -- were we panicking last week, was that an exaggeration? week was an last exaggeration, just like august and the timber was an

exaggeration. what sparked it was the chinese lower fixings of the currency. the sharp drop in oil prices has led to recession fears of the u.s. and the global economy, but i think these fears are exaggerated. betty: you didn't see the imf taking down their global growth forecast. they still see above 3% growth for the world. that is not signaling recession, do we really have a recession risk? >> what is interesting is that the manufacturing sector, both in the u.s. and china, is in recession and has been sometime. in the u.s. isor clearly in recession, but the overall economy is holding up fine. if you look at the typical things that would cause a recession, but of them are present. we have no overconsumption, no overinvestment, no overheating.

we definitely have no overkill from the fed or other central banks. other central banks like the ecb and potentially the bank of japan could actually at easing this year -- add more easing this year. a fascinating speech this they thoughtthat they were poised to raise rates and see how things have turned out so far, it is not likely to happen. >> that was another u-turn from mark carney. he had to react to what's going on in the global economy and he has to react to the much lower outlook for inflation and that is the same the u.k., europe, japan, the u.s., the further drop in oil prices has flattened the inflation profile going forward. i think you will see central banks reacting just as he

reacted. last year, he said that a rate hike would come into focus around the turn of this year. that is clearly not the case and now we are talking the turn of next year. betty: which is incredible, that it has been delayed that long. it is interesting because we had a guest on bloomberg , bob michael from jpmorgan. theinterpretation of comment is that it's actually a bit of a criticism on janet yellen because the u.s. and u.k. economy have kind of mirror each other. they don't really see any wage pressures. while she went ahead and raise says p would not do that and is looking at the inflation picture. -- in this guy's interpretation, in a debate chris -- criticism on janet yellen. good friend of mine,

but i don't agree with him on this. i don't think carney meant to criticize janet yellen. the fed is looking at the situation right now and will come to a similar conclusion that the risks to the outlook have risen and particularly, that it would take longer for them patient to go back to target. we just have to accept that over the past month or two, things have changed, particularly with the inflation outlook and it's normal that central banks react to this. have a global situation where there is a global savings glut that is depressing demand and interest rates. we have an oil glut that is depressing inflation and it's just normal that central banks react to those two glut by adding to the money glut. betty: and now they are getting themselves out of. back on china, the interpretation seems to be the numbers are not great, they were better than the lowest estimates

but they show there is a slowing chinese economy and strangely enough, the interpretation was china is going to add more stimulus. do you subscribe to that? you really have to look at old china and new china. what it comes to the hard landing, in the old china, it has already happened. trade has slowed a lot, globally we are feeling the concert dances of the low weird -- the lower commodity prices. the hard landing in old china has happened. at the same time, you have a new china in the service sector where growth is doing better. the issue is that the chinese authority wants to add more stimulus. this is the tightening capital controls, this sets them up for more monetary easing. the fear was that monetary easing would lead to large capital outflows.

then you can implement more easing, we expect two more rate cuts and we expect multiple reductions in reserve requirements for the banks. betty: stay with us for a moment, we will have you back after the commercial break. we will talk about the next move chinae fed, the ecb and and how much more dovish the ecb is going to be. we are live from the world economic forum that starts tomorrow morning. we will be talking the biggest , includingsiness jpmorgan, blackstone and marriott. ♪

betty: good morning and welcome back, we are one week away from the first fed meeting of the year. should we expect any surprises? so, he thinksks the damage is done by the interest rate increase, already. >> in december 16 increase was ill advised, i think they should've done that more than two years ago when the bug is when the bubble was less -- was much smaller. duringfor a rate cut sometime in 2016. it is a matter of whether they raise it one more time in 2016 -- in march. betty: i want to bring back pim co's managing director. 2016? cut in

>> that is the world we have been living in since the great financial crisis. every central bank that height interest rates since 2009 has been forced to climb back down. it is different for the fed, so i think it is unlikely that that that will have to cut rates this year. i don't see a recession around the corner. the question will be whether they can squeeze in the 3% or 4% they have been assuming, so far. that is increasingly difficult, having said that, the market is already adjusting to one hike this year. i would say 2%, maybe 3%, there is a possibility that growth rebounds this year because we are seeing a huge benefit for consumers from lower oil prices. it,ially, they are saving engaging in something i call

opportunistic savings. the windfall comes along and they stash it away for some time. a sharply, we could see rebound in the economy in the second half of this year, so that is why i am in the 2% to 3% rate hike cap dash cam. -- camp. consumers were initially cautious with oil prices lunch in the second half of 2014, but then in the first three quarters of last year, we saw a very decent consumer spending, 3% plus. it's loaded in the fourth quarter, but i think it's temporary, so it takes some time until people adjust to the new environment and the lower gas prices. betty: do you think oil prices will rebalance, this year? do you think we will see me low in oil by the second half of this year? -- see the low in oil by the second half of this year?

>> i think so>>. this is increased by supply from the middle east. over time, you will see more of an impact from the reduced supply, so there should sit -- there should be something of an oil prices for this year. betty: how do you expect that to impact the global economy? we've seen the destruction in the markets with oil prices, but it oil prices do rebound, does that necessarily mean that the volatility ends and the market goes back up? a new volatility regime, so i think it will not end, i would also expected oil prices rebound, they will still stay volatile and so markets will stay volatile. for investors, this means that we have to remain calm, we should look for more periods of volatility and as they occur, this will create opportunities to gobble up some oversold assets.

that was the case back in august and september, this is the case now and we will see more of this in the course of this year. betty: thank you so much for joining us. after a long weekend. time for the bloomberg business flash, a look at some of the biggest business news. delta saying the strong dollar is partly to blame for their week result overseas. there first quarter sales dropped. cheap fuel help them post a record profit -- helped them post a record profit. leaner stephen cohen plans to hire more than 40 traders and analysts to oversee his wealth. that was part of an agreement that settle allegations. he failed to -- millions of twitter users lost their service early today.

the glitch affected both the website and mobile app. twitter had suffered several outages this year, so far. that is the bloomberg business flash. still ahead, shares of morgan stanley and bank of america are higher.moving we will talk about how those banks and the financial sector in general are cutting costs. ♪

welcome back to bloomberg markets. let's head back to the markets desk where we have a check on some of the company movers, including some that are moving on analyst calls. ramy: we will head to tech stocks. about threeby quarters of a percent.

your today, that they are down 7% and in the past 30 days, they are down 12%. it turns out it is a buying opportunity according to goldman they areey say maybe getting a bit of a floor, they expect the forecast for the fiscal year second quarter revenue to be a few billion below consensus, but also that by side expectations are below guidance. william blair is also saying that is estimates are lowers -- lowered because of headwinds. taking a look at another tech stock, we will head over to netflix and right now they are up by about 2%. down 9% after is being the top tech stock 2015 by options trading indicator there might be a plus or minus of about 14% and netflix does report after the bell.

looking at food stocks, we will take a look at mcdonald's as well as shake shack. mcdonald's and shake check both rising. -- shake shack both rising. betty: thank you so much. shares of bank of america and morgan stanley are up, this morning. the bank supported their first-quarter earnings this morning. it was amid a wave of cost-cutting. to break this down, i want to bring in dakin campbell. they're back income trading, so disappointing. dakin: we knew that was going to be the case. they had a severance charge, they told us they were going to cut 1200 people. they are making big cuts to income business and that showed through in fourth-quarter results. betty: did we learn anything new from this earnings report? dakin: not just that, but they

put out a strategic update, which they do this time every year and in there, they tell us how many assets they will contribute to the fixed income business. those assets are down about 30%. assets, analysts look at that to determine sort of how much capital they will contribute or put toward bond trading businesses. down a lot sort of supported this thesis and this narrative that we knew that they were getting out or getting smaller and that was the case. betty: jane foreman was speaking on the conference call, we exit had a piece of what he was saying to the analyst -- we actually have a piece of what he was saving. >> we increased and you will buy back to $2.5 billion. we intend to further increase capital to the shareholders in the years ahead. betty: will he be able to do

that, given the regulatory concerns? that, the stock has taken a big pounding the last year. when you contribute less capital to the fixed income business, and you can return some of that to shareholders. in that update, we also learned that he has been talking about a 10% are oe target, but he never put a time frame on it. put one on it, 2017, they will get it between 9% and 11%. i think that is one reason the stock is up, this morning. finally put a timeframe of on the target and something they can hold him to. betty: on bank of america,. dakin: they did very well. costs were down, revenue was up, they did better than folks expected.

that is a hard thing to do in this environment. betty: it is, given the prospects. much, dakin campbell. still ahead, entrepreneur and venture capitalists. shares his biggest -- in 2016. also he is raising the -- how he is raising the stakes in tech. ♪

betty: live from bloomberg's world headquarters, you are watching bloomberg television. let's get to the first word news. iraqi civilians are

being killed by islamic state at a rate of more than 800 a month. another mass grave was discovered. the u.n. says nearly 19,000 iraqis died in a 22 month period ending last october. the killings could amount to war crimes. rival factions in libya say they resolve their differences. libya has been torn by violence for four years. u.n. brokered talks between the rivals. for aers are looking dozen marines off the coast of hawaii. they have been missing since two helicopters collided during nighttime maneuvers. to during today's morning rush at a paris landmark. firefighters quickly doused the fire.

writers --hangout of of ernest hemingway first opened in 1988. the world's oldest man has died in japan. he said secrets to a long life were not smoking and not drinking. oldest person is a brooklyn woman, 116 years old. day.l news 24 hours a betty: thank you. now from the apple watches debuted to troubles at era notes, a new space race led by 2015 proved to be a wild and crazy year for the tech world. in the midst of all of this market turbulence, there is even more to come this year. here with a reflection of his big predictions -- he cofounded with former aol ceo steve case

and he is the founder and chairman of -- which owns the washington capitals, washington wizards, the mystics and also the verizon center in d.c. ted, good to see you. your big, bold predictions, some of them are worrisome. a big, black swan event. >> i think there is a basic insecurity that the markets are it probably has to do with something around a cyber attack. there could be a cyber attack that could cost us more than a major hurricane. betty: something bigger than what we've seen already. >> i think nationstates are financial states and we need to make the investments to detect our personal data and our institutions and our country's data. on a smaller scale, you

say something unusual like happened in the corporate world. you could have tesla buying ford or amazon -- >> it is more likely that apple will buy tesla for the ip. betty: but something weird might happen. >> having lived through aol buying time warner, i think you -- this something intermingling of industries and some of these different kinds of courtships, certainly these companies like apple or google that have so much cash in the and that they can go out make an investment for the long-term and try to get in other industries. i think the financial services industry that has been regulated for so long, you can see new platforms come into the market and you might see some mergers. i think they will be big

changes. you also see these unintended consequences, digital and global, yet it is the price of a barrel of oil that has the unintended consequences of driving profits in the airline industry or why we had such a great year of car sales. you understand intuitively that millennials are not buying cars, but yet last year we had the best sales of cars. betty: public unicorn companies are going to go private, which ones, do you think? >> you will see a lot of companies -- these britney of a public company right now in the public markets -- betty: like twitter. >> twitter is a great example. a lot of companies wrote the check, when they went public and now it is priced well under its ipo price. betty: you think they could go

private? >> there are a lot of companies that need to reinvent themselves and reinventing the business model under the harsh light of public markets is quite difficult. betty: the other one is in gaming -- e-gaming. >> it is already baked in korea and china. betty: well, leagues. gaming surpassed hollywood over a decade ago in terms of sales. a $50 game is much more valuable to a young adult then going to a movie for $10. you will see a lot of e-gaming moving into subscription types of businesses like some -- like seasons. h road racing league is

getting -- a drone racing league is getting put together. the whole transportation world will change, it is not ation of ubervic everything. drones, hundreds of billions of dollars of deliveries of groceries can happen overnight, your pizzas can get delivered via drone. all that airspace will have to be regulated and parsed out. betty: let's talk a little bit about sports. let's blend your tech and sports background. people are talking about these broadcast rates for these sports leagues and there is always this question. we know it is the broadcasters who usually advise the cable networks.

what about yahoo! and apple? when will they really be serious contenders to these sports rates? it is just a matter of time before on apple realizes that sports has been the killer app in media. movie and sports, real-time sports programming they are valued by consumers and it's a part of that bundle that they will identify value and what to pay for. one day, there will be some big itunes store in the cloud where you can buy games or subscriptions. today, it is very convenient for the media companies to continue to package and use of sports and movies as a lead offering. we will see a lot of development in what's called skinny bundles and ott. that will help expand the market. the big issue has been

misidentified, sometimes we talk about cord cutters, people that don't want to pay for cable, that is not what's happening, it is the young people that are graduating from college that never got cable. they then come into the market and they are more wireless, they are more mobile. they may never have a tv, they have their devices. betty: how does this affect the pricing of sports? getting back to sports rates, there are more millennials going online, they are not watching traditional cable or broadcast, where does that leave the pricing? >> we still some tickets at the verizon center for wizards games -- they0 a game and an are lining up to get them, so people will pay a lot of money to go to a game. paying for a subscription like a

season ticket, watching all 82 games, i think it is a very reasonable and very easy to value that kind of subscription. betty: on a final note, i think about the big worldwide leaders in sports like espn. they are trying to put together an offer more ott services for the millennial. when you look at them, you think they will be able to come up with something as good or bigger than what a already have? >> comcast, disney, espn, really smart people, but the real expansion is outside of the u.s. there were people all around the world with internet connections who love the nba and the nhl. we continue to focus on the 300 million households in the u.s. the opportunity to grow revenue for all of our businesses, digital, internet and

media, it is outside of the u.s., you have to go ott to offer skinny bundles that will be relevant to consumers on a mobile device. betty: thank you so much for joining us. ted leonsis, the cofounder of revolution growth and monumental sports. we have some breaking news on macy's. shares are rising. there is disclosure of a new -- byon i david einhorn david einhorn, it put a new position in macy's according to a bloomberg report. greenlight says they could be bought by a private equity firm. we will get more details on this, but again, greenlight reporting a new position in macy's. those shares are up. much more ahead on bloomberg markets.

netflix releasing their earnings after the close. could a solid report stop the stock slide? annualk is dropping the subscription service for its what'sapp service. apples weakness is a buying opportunity according to goldman sachs. ♪

betty: welcome back. time for the bloomberg business flash. a service launched today by verizon lets companies pay for mobile data used by customers it is called freebie.

critics say it hurts startups by tilting the competition in favor of big companies that can pay the bill. bank of america posted better-than-expected profits in the fourth quarter. fixed income revenue was up 24%. the ceo say they will continue to cut costs and a little markets have made it harder for banks to increase revenue. is investing in the onion. they set the satirical website will play a big role in expanding its audience. that is the bloomberg business flash. for a look at how markets are trading right now, we are still higher, no not much higher than this morning. we are live in the nasdaq. leading stocksen higher at the nasdaq, although

the stock itself, apple has been getting back some of its gains, though it is up from bullish markets -- comments by goldman sachs that the weakness represents a buying opportunity. goldman says a potential guide down on next week's earnings call it like we always -- already priced in and that any --k -- weakness rmb march what might stand of the most is the idea that goldman is calling apple vote defensive stock in this year's selloff, something that was true in 2008 and 2011. netflix shares are sharply higher, and ahead of today's earnings after the bell, analyst doug mitchell is says that -- is saying that the growth is thatlayed and that subscriber adds, there are more than 35% upside to the price target of 147. facebook also trading higher after the company has dropped its scriber fee for its

what'sapp. recently -- it will be interesting to see if that holds. betty: abigail doolittle at the nasdaq. the end of 2015, travel giant expedia bought a company for $3.9 billion. how exactly is light under the expedia umbrella? we caught up with the ceo of homeaway to find out. in thel pretty early relationship, but i have to say expedia has been a great cultural fit for homeaway, so far. they are very respectful of the strategy that we started to execute last year. they're running it mainly as an independent company, but also offering to help in lots of

different ways. one of the things we are at work on is trying to figure out how to best expose our inventory on their sites. that will be one of the biggest contributions we can make to the business. the conversation, the business you are in, seems to be dominated by airbnb. how do you take efforts to ifferential rate yourself -- launched a new campaign this week, the biggest integrated marketing campaign ever. we are doubling up this year on our brand related investments and part of the reason we are doing that is to make sure that people understand some of the differences between homeaway and other sharing economies as well as hotels. hubbell a is quite different than the nba -- homeaway is quite different than airbnb.

you list homes and apartments and choose to share them for a few weeks and either move out or stay in some cases. homeaway is almost exclusively so -- second homeowners, the traditional vacation rental market. back when carl sheppard and i started this company, it was already a $150 billion business. we were just the company that brought it online. -- versus the traditional vacation rental market which is about renting a whole house and having a private experience with a group of people you want to travel with. betty: cory johnson here with me with more on this. cory: i'm so far away.

these are some interesting things in their business. ,e talked for quite a while they are in this technological trend where more people are doing things with noble everything and also expecting kind of one-stop shopping and rather than homeaway just as an introduction for the consumer and the homeowner to transact, but actually taking care of everything, whether it is doing business, on a mobile restaurant recommendations, travel recommendations, homeaway is now being pulled into doing all of that kind of stuff. , one ofozen airbnb their big competitors, don't they have a campaign app that attacks away -- homeaway? cory: they are drawing great distinctions between themselves , finding horror stories, the -- not the least of

people that live there might be there at the same time, even in the same room. you have companies like morgan stanley telling employees they can stay in airbnb places as part of the approved corporate travel but homeaway is really about vacation rental, trying to distinguish themselves around that market. betty: they are doing well under expedia. cory: we don't know what the numbers will be, but it is a company that is growing fast, a $500 billion runway for their take. this is a very big business that expedia has acquired and one that is growing quickly. betty: have you used it? >> no, but i am not very good at taking vacations. dayy: is a vacation, every -- it's a vacation, every day. thank you for joining us.

much more ahead. ♪

betty: now time to get you caught up on all the action around the world. stocks rebounded in asia from a three-year low and the big story out of the region is china's economic road numbers. they missed estimates, authorities struggle to manage the transition to a consumer driven economy. just saw its weakest quarterly growth since the first quarter of 2009 at the death of the financial crisis. they had slightly below estimate global growth. other monthly indicators like industrial production, urban investment and retail sales in december missed forecasts as well. the premier said they are facing

increasing downward pressure. pressure despite that, you did see markets rally and also in europe and here as well. we had to europe where mark barton is watching stocks rising . welcome back, you are greatly missed, yesterday. -- you were greatly missed, yesterday. chart foris, to date the stoxx 600, yesterday, lowest level in over a year, today we have rebounded. interesting what's going on in stimulus will see more , but does it even matter?

in interestcuts rates, the yuan is weakening, we have had the reserve ratios being cut as well. what more can stimulus do? betty: is more psychological, perhaps. been interesting about this whole market route so far is that there is not been much that has fundamentally changed, it is basically all psychology, we are all going crazy. mark: we are, and it is playing out in the markets. shanghai rose, today is the biggest in a number of months. i want to show you the chart of the day when it comes to currencies. carney, the governor of the bank of england has spoken and says now is not the time to raise u.k. interest rates. lowestg falling to its cents 2009 -- its lowest since 2009. betty: i know we will be talking

about that in the next hour in the european close. mark: we are and we are joined from btb global who will talk about mark carney's comments. data?even trust the we will ask miller -- we will ask leland miller. david gura interviewing christo of christo and jenn: faith buty: i am neutral on that, i am a fan of brendan and you and i know you guys are going at it in a battle of the charts. we will be back. ♪

betty: 11:00 in new york, 4:00 p.m. in london ,elcome to the european close mark barton is joining us from

london as we wrap up the trading session in the next hour. mark, we are watching this big rally. mark: european stocks at the biggest jump in a month after china data raises prospects for further stimulus. the european close starts right now. ♪ betty: we will take you from new york to london in the next hour and are, he kicks things off for us. mark: biggest increase for the stock in a month after dropping to the lowest in over a year on monday,'s china stimulus talk is track gain today, helping the price of metal as glencore. interesting to see gold down. energy companies are