a very warm welcome to you and a happy new year as well. this is "worldwide exchange." i'm wilfred frost. >> and i'm julia chatterley. these are your headlines from around the world. >> mario draghi says the ecb is at grater risk of price stability as he and the governing council stand to act early this year. manufacturing data splits sending the market into negative territory. general motors forced to recall another 83,000 suvs and pickup trucks due to more problems with ignition switches.

>> and the french government says it is honorable and they should get on to growth. we've been having manufacturing pmi data out this morning from the likes of france, germany and italy all disappointing. 4/ 4/it was forecast at 50.8 and it's come in at 50.6. so a little less than was expected. 50.6 is that number. a four-month low with the manufacturing number and as far as the french numbers, too. >> indeed. and that is contrasting to ireland. slightly lower than the number did come in at 53.8 marking 13 months of growth. the german number, as we touched

on 50.2 versus 49.5. i suppose the interesting thing about this is it's no longer that simple call strong call weak periphery. there's a lot of divergence and it makes it hard to know what the right course of action is. >> i believe it's really simple. europe is struggling. there is no growth in europe. it's a very easy decision to make i think, snars qe is concerned in europe. look at disinflation inflation, arguably, some of that is needed. >> even though mario daggy said they're ready to do that the issue he said was the government and physical policy as well. so the germans are going to continue their rhetoric saying you don't deserve quantitative easing until you start making difficult choices.

>> do you think very interesting, we were talking about italy earlier in "squawk box" and some of the reforms that they've done. the new jobs act with matteo renzi. we're talking about a country that has one of the most explosive and public sectors in the world and he's reducing the amount of impact it's going to make on his called revolutionary jobs act. i have to agree with you on that point. >> in december, new orders weakening. the number coming in through december 49.4 from november which is 49.1 but remains below the crucial 50 mark suggesting that we were still in a decline period at the moment. for the stoxx 600 as we stand is just off 0.5%. it's weakened steadily throughout the day as the pmi

data has. >> mario draghi to see about the germans to qe. we'll continue to watch that with baiteded breath. let's take a look at what's coming up on the show today. >> for more details, obviously, i have no idea about that, of course. and it's the new year yes. with our website, cnbc.com where you'll find 2014 and planned for

the year with health and fitness. if you have any comments, you can e-mail us, "worldwide exchange"@cnbc.com. don't believe a word of what julia just said. let's have a look in at the markets which are in the red. we kicked off in disappointing fashion. last year he with kicked off in positive fashion. we were up slightly at the open. we're down 0.45% and that has come, really as we just touched on. some of the pmi data coming out, more disappointing than expected. particularly france and italy. although there were some positives, indeed including germany and ireland. but nonetheless, the markets in negative fashion, the stoxx europe 600 down 0.4%. germany off 1%. france off just under 1%. italy down 0.3%. let's look at bond rates. the last three trading rates of 2014 did see a little bit more of the yields. bond buying really off the back of the greek and a decline in the oil price despite concerns in libya.

we saw yields just below the level at 2.9%. germany is at record lows again today. the uk is below that of the u.s., even though both of those countries have the prospect of rates going up but nonetheless, we are lower in the uk than we are in the u.s. and italy and spain on the back end of the trading year both hit record lows on the ten-year in italy. let's look at forex rates. the year of 2014 was one of dollar strength. the broader dollar index rose 12% over the course of the year. that's the strongest year for the u.s. dollar over the last nine years. we've kicked off with euro weakness dollar strength. down 0.5% at 1.2043. we've got a bit of strength in the u.s. dollar similar amounts

against the yen at 1.23. aussie/dollar is off 0.5%. sterling is at 1.5522. >> the iranian deputy foreign minister has called on saudi arabia to intervene to help halt the price of oil prices. in an interview, they called saudi arabia's lack of action -- it's hurt numerous countries across the middle east. neal, great to have you on the show. happy new year. >> happy new year to you. >> a strategic mistake? the iranians would say that wouldn't they? >> they want because they're in the direct economic situation. however, for those of us that have been around the oil market analysis game for a long time should harp back to 1986.

back then the oil price collapsed from $30 to $10 quickly. during 1986 saudi arabia and its colleagues successfully cut production to prop up the price. all that did was provide a path for the growth production at that time. fast forward to 2014 we have weak demand opec faced with a dilemma. we've got the u.s. growing its production quickly. they have not put a floor under price giving the u.s. a free pass. >> just giving away market share. >> exactly. >> what about what we saw in the last couple of weeks of trading are concerned? we saw further weakness. are we at the floor yet? >> no we're not 37 i likened this to a bit like a bungee

jump. the market has jumped off a cliff and it goes down and down and down. but we're not clear that we've reached the bottom yet. >> in '08-'09, it was around $36, $37. on monday of this week the supply side started to get a little outlet. where about will that floor come in where demand really kicks back? >> point one, it's guesswork. point two, if you look at the underlying demand numbers for the first half of 2015 what the numbers show at the moment is they continue to be a fairley significant surplus of supply and demand. on the basis, that dynamic doesn't change then there's nowhere else for prices to go other than down. four far down they can go

frankly is guesswork. who knows that the same thing could be repeated. as you considered in your question, the impacts of lower prices will, of time do a combination of two things. number one, it should restrict the growth of product, particularly from the nonopec countries, and number two, it should encourage a faster way to demand growth. if both of those things happen in some combination, the market should find a balance and it should find a floor. frankly, whether that floor is $50, $40, $30, i'm afraid nobody can tell you that with any degree of -- >> what about as we head into earnings season? we've heard a lot from the oil majors in particular. goldman sachs had a trillion dollars of risk right now. what are you looking at here and what are you expecting? it's a long life is cycle.

>> these are very very long-term projects. the companies aren't going to switch things off. yes, they're going to look at all their projects. they will run areaos that if the price stays at 50 60 40 whatever it is for a significant period of time then they go look to see if there are ways in which the projects can be made more efficient and most cost-effective. number two, if they think there isn't going to be sufficient price over the next day five years or so then dwre they will put projects on hold. but these are long-term projects. and in the long-term, for gas and goal energy demand is going to rise simply because of the population growth. and in time as production growth will start to peter out in countries or the geology doesn't allow for an increase in

production and prices will start to rice again. but that may not be for five years or maybe ten years. >> and who is the biggest beneficiary of this? >> well countries such as china and indonesia are -- if some are already taking advantage of lower prices which cost them a huge portion of the gdp. it is going to benefit any country which is importing oil in any form of large quantity. it is a massive wcht to those economies. the economies of the middle east, however, that's another master. they're usually dependent on oil for no mc. >> there's a lot of speculation with regard to the king of saudi. there is al of speculation this could have some kind of impact

as far as the saudis are concerned. >> it was interesting. harkening back to 1986 in 1986 the saudis cut their production down to about 3 million barrels a day. the previously unassailable sheikh was sick. fast forward to 2014. what the saudis are doing now is not the oil ministry working by itself. however, if for the sake of argument the price were to slide significantly lower than it is today and look like it's going to stay there for some time there are other members of the royal family other interests that might desired that this is too much pain to take domestically even though they have significant reserves. and perhaps if there were to be a change dwb then perhaps the policy could change. but that is speculation at this

stage. >> speculating when oil prices are going to rise will be a crucial factor. neal, great to have you on. >> indeed. just one final comment before we move on we just got a flash coming out iraq oil exports reached 2.76 million barrels per day, a record high the oil officials have say, the highest since 1980 coming from iraq. >> impressive numbers, neal just quickly before you go. >> what wove seen consistently since 1991 is there has been no interruption to exports from iraq at all. and as long as the fields that produce the oil which goes to the pipeline system flows uninterrupted and that's been the case for the last six months exports should continue to grow and indeed they go grow further.

general motors closed out 2014 by issuing more recalls. the largest involves ignition switches which can affect engine power and air bags. gm says no crashes have been reported. this affect 30 million cars worldwide. in frankfurt trade, it is up 1.3%. a new 10% fall in december sales compared to the same next year. elon musk has divorced his wife for the second time. this time the billionaire did not take to twitter to share the news. they later remarried in july 2013. he has great to give her $60 million in catch as part of the divorce. the couple say they remain

friends. the hype over the wearable market apple's watch could be a big slot according to one start up investor. and snapchat picked up close to $5 million in spending. we'll find out what that means for the value of the social media app. stay with us. we're back in two.

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welcome back to "worldwide exchange." germany's newspaper, draghi underlines that the ecb would be ready to act against those early in the new year. qe was still on the cards. eurozone inflation is currently at 0.3% a far cry from the 2 pergs target. a lackluster performance in 2014 ending the year down just over 2.7%. this despise an improved economic picture in the united

kingdom. prime minister david cameron warned the year would remain uncertain. andy did morning, happy new year to you. >> good morning. happy new year to you. the ftse 100 probably has the best economic outlook in the eurozone. why was it the performance? >> when people look at the ftse 1 hunl been they assume if the uk is doing well the ftse 100 is doing well it's all big pistons. they have to drive forward and they need to be working together. it's rarely fallen on all four systems. and you look at the ftse 100, you've got the miners traveling around the country this year all over christmas i found no evidence of mining activity. so that depends on what's happening around the world. you've got telecommunications the drug sector and you've got

the banks. they've done well with the activity. then you've had the miners doing badly because of china's slowdown. it's been very hard for the ftse to drive forward. it's up on the year and that is very much for a uk focused area. a lot of those have -- populations of countries growing. the social demand twice in the uk, and the price of the uk stocks particularly the ftse 100. >> and i mentioned it there because what you haven't mentioned is particularly with regard to sterling's weakness. it's political uncertainty. >> well, yes. i think no one really believes

we're going to have -- the time about doing his job. i think this is the most interesting general election that we've got. in the past it was pretty easy to see who was going to win. the dream coalition ticket, or is it going to be sort of the steel, as well. uncertainty over labor. the businesses in the uk economy are doing well. the epic game on new year's day. epic in terms of german -- who are in the construction industry. and, you know it's happening in that particular industry.

that could be good news. we see one area of the economy and they cash they're going to be splashing it around and that's going to start feeding through to the rest of the economy. >> we have to see some wage improvement, as well. tesco, they've got strategic plans coming out next week. what are your thoughts there? >> you know that is obviously the hardest job to turn that around. you wouldn't start from where you are, would you? and it's just -- it is already cheap for tesco. back in november she dragged me down there and you could buy booze at 50 a bottle. prices are still quite low. the dynamics of the industry are

such that it's going to be a real challenge to drive that forward. >> why have they suffered so badly? if we forget about the internal issues b, it's not just that the discounters are cheaper, but is it form of their operations are going to suffer? >> i think so. if you become a market leader and any wildlife program you want to watch, the young cubs coming in and as soon as they start stepping out of line, they're squawked or eaten. rather than saying, you might be a danger jump on them then. they grow and get some traction just as jjb with let exports directs grow and consumed themselves.

if you see an you better jump on it straightaway. >> if you look at the dividends, is it something to stay the heck away from? >> you know that boor guy has all these factors. a $3 billion pound bengz deaf sigz as well. >> just very quickly, a one liner top picks as you head into 2015? >> i would still say uk domestic but keep an eye on that currency. it's 155 against the dollar now. i think long-term, it's a great win in 2015 with the currency what it is. it's going to be very beneficial to them. >> achdy, great to have you on. international experts have joined the search for the crashed air asia jet black box.

analysts expect the pilot may have made an emergency water landing before being overcome by treacherous seas. the operations director of indonesia's search and rescue agency told reporters that there is evidence they're getting closer to finding the flight fuse language. china's government is being criticized after 36 people were killed in shanghai on new year's eve. the government took responsibility for what it described as a lack of vigilance and sloppiness. they're questioning why thousands of people flocked to shanghai's water front to celebrate the new year and there

weren't more people on duty. a diplomate has been fired in president xi jinping's organization. the diplomate has not been charged. >> we have to take a quick break. still to come, the italian president says he will step down down. we ask what it will mean when we return. stay with us.

mario draghi says the ecb is at greater risk of not -- its mandate as he and the government council stand ready to act early this year. french italian and spanish manufacturing data split sending european markets into negative territory. they've recovered from a 17-month low. general motors forced to recall another 83,000 suvs and pickup trucks due to more problems with ignition switches. >> the french government talk about growth. >> we have just had uk december manufacturing pmi, which has come in at 52.5. it had been forecast at 53.9 so it has come in below expectations.

kweef seem sterling fall against the back of that. down 0.3% on the day. so that comes in as i said at 52.5. the november reading has been at 53.3. we've got more coming out on lending, the lending data has gone up. plus the mortgage approvals have gone down. >> consumer lending, beat economists and an annualized rate to december. a significant boost in consumer lending. did fall and had been expected to fall a bit more. it came in at 59,029 in november down from 59,511 in october. so that is the lowest level

since june 2013. we did see gains this morning, now turned to lows. the ftse 100 down 0.7%. the german markets relatively flat. italy weaker today. the most level in 19 months. let's have a look at bonds, as well. the last three or four trading sessions have been risk off ones. mainly in europe bond buying but the correlation of global bond markets have continued in the u.s. as well. germany is at 0.5%. italy now means that the spread between -- well sorry. and spanish yields as well

which aren't on there. but the spread between spanish and german ten-year are below basis points for the first time. italy is pushing lower and also narrower. >> euro/dollar this morning trading at 1.14. we've gone through that june 2010 low. taking out the low, it's 1.20 who. over in germany, suggesting there is more risk now than six months ago of not meeting their price stability and that qe remains on the table. a quick check on dollar/yen. the dollar strength in the trading session today. economists thomas picketty has refused -- ets it shouldn't be the government's will to decide

who is honorable and they should focus on reviving france and europe's economy snet. the book made the amazon best seller's list having sold more than 11 million copies. louisa spoke to the author about his predictions for inee quality. >> we give to a regime of below growth which, naturally, we stand to return to its situation which we had prior to world war i where the rate of return to capital tends to be -- and the growth rate of the economy. and this time to push throughout a large concentration of wealth. this means the large share was going to the middle class and, you know i think this is a

concern for many people right now. >> a lot of arguments, we're seeing it all over the place. hasn't this always been the case, though? >> if you look at the 1987 2007 period the entire 26-year period they've been rising about three times as fast as the size of the world economy. so, you know if this continues for another couple of decades, this means the share going to the very top is going to rise possibly to eye level. at some point, it will have to stop. but, you know i don't know where it will stop and nobody knows where it will stop. so i'm not saying i know exactly what is going to be should show a rate of return a large wealth in the coming decades, and we

should try definitely to use growth and have higher growth. but i think it would be a mistake to believe that just relying on market forces is going to be enough to keep us from becoming you know a world distribution of wealth. actually even china is now talking about bruising some form of production tax or wealth tax. and, you know, in north america and in europe, you know, where we are attached to the rule of law, the taxation is a better way to regulate the dynamics of concentration. and also to produce no -- from transparency and no democrat

iblg transparency about health dynamics. the italian president napolitano has announced he had to step down soon. the 89-year-old says his age is the main contributeing factor to his decision. joining us now, a policy analyst at open europe. pavel, about morning to you. thank you very much for coming in. >> good morning. >> first avenue, is this essentially a toxic twagz for prime minister renzi as the greek voice facing prime minister cameron? >> no. and unlike in greek, in italy there is no amount of surrounds that can take place before the president is elected. we can have five, six, seven eight rounds which makes it possible that at some point someone will have the majority unlike in greece where they have that ridgy system. >> you're talking about several rounds of election for the

president. that is good luck as far as any progression on the form is concerned. that is very toxic for the country. >> sure. it wouldn't risk any immediate collapse of the government. in the longer term it deextracts even more from these reforms that renzi has pledged to implement. certainly if it were to go to such lengths, then it would be a big problem and it would undermine his authority because it suggests the candidate wouldn't get enough support initially and it would require a long process. >> could he turn it the other way around use it to benefit using someone to appease his opposition and use that momentum into his reforms? >> that would be the ideal scenario from renzi's perspective. but there's a lot of opposition within his own policy.

because it's a secret ballot unlike in greece where you have to stand up and not vote for the presidential candidate, here it's secret. that's why one of the front runners, who was a candidate back in 2013 he failed to get the majority support within his own democratic party. so because of the state or take prolonged system it does -- it can be quite risky for renzi. >> at the same time, the demands of brussels right now as far as reforms are concerned. how does he balance those two things? who does he choose? >> so if he were to get to -- the former president of the european commission and very strongly admitted to european integration, that is someone who

would not necessarily give him the support he would need to stand up more for brussels in trying to resist the stability or austerity, however you want to call it. given the strong anti-politics in italy, which has been further axer as baited by corruption scandals, maybe there would be a -- from someone who has not been a tradition politician actually, and -- >> how about appeaseing some of the other parties perhaps in parliament. i talked to in rome as much as two months ago saying what he's doing right now in come sole dating power, he's put people in key positions. if you look the police chief and authorities now have a key

position in the parliament too. it is right now about consolidating power. if you look at reforms, that jobs act where he excluded all the -- what is going on here as far as renzi is concerned? >> renzi needs to deliver reforms because that is what his credibility rests on. and in the longer term there is a contentious reform which it needed to prevent a repiece of the last election. the debt lock in the two houses of parliament. he needs to consolidate his power to push through these reforms because otherwise inter internationally and domestically it will be gone. >> we'll see whether we get some kind of resignation because they're talking like he's already resigned and it's not yet official. it's great to talk with you. now the approach of a new year has us turn to go what 2015

likely means for economies. we recently spoke to the european market strategy and charles merck head of developed economics. we started by asking if it's infected into the bank's 2015 outlook. another engineer, the huge wave of the fixed income market less than zero. you have to give credit to the ecb. they put so much now off to investors that they've caused a massive move of money up the chain which is going to go into quality credit. you can always think of it as investment and the high yield market becomes the investment grade market.

i certainly put a lot of faith in the existence of negative yields. they reach for returns. >> isn't it also an impediment to initiate qe? why would i as a banker as an investor -- my government bonds when i know you have to put it as negative dmoft rate of the ecb? wh are we going to get the fair cut? it's about getting a fresh start and getting new perspectives? the debt to gdp around europe is massively higher than it was three years ago, five years ago. ironically, this year greece

becomes more competitive than germany for the first time since 1999. the one thing probably is the haircut and i don't get the qe. i understand negative interest rate, negative impact. but isn't it an impediment to starting qe? one of them is to generate inflation or inflation expectations because real interest rates aren't that loose in the eurozone. the idea of qe is shock and awe policy. if you compare it to when the u.s. or uk did qe the difference now is it's going to pull a massive squeeze in asset prices. >> uk and u.s. is net critters. clearly from metrics operation, it's less of an impact. >> if the ecb come out and say, look we'll do 40 billion to 50 billion a month and keep it going, it's how it's signaled. >> qe seem to be a very

different beast than what we see in the u.s. europe would have banks rated from the banking channel. so the question for the ecb, it was interesting yesterday is how you reconcile qe with the bank in general. and i think quite belatedly, the story behind it to say if we completely flatten yields we will finally kill the carry trade which has allowed again not to lend. the day you bring italian and spanish yields to year zero you force banks to stop doing what they're supposed to do. then they would buy, what? nonyields and maybe assets triggering the drop in the value of the euro. so i agree that some of the channels recently the sector in

particular how it's not going to be a strong in europe. there are other ways actually for which qe can work. the german chancellor angela merkel sent a message to warning against dangers arguing immigration is an issue for everybody. merkel appealed to germans not to turn their back on refugees. as the uk enters an election year, uk prime minister dave cameron has used his to bench the economic plan. cameron claims there is good news on unemployment, lower taxes and a higher state pension that warns the global economy remains uncertain. >> there is a lesson in angela merkel's comments for japan. there's only one country in the world with worse demographics than germany and that's japan.

much bigger is their demographics and they don't embrace the labor cycles they need in order to offset that. >> and then if you look at the populous i think it's interesting that she chose this. the likelihood is at the end of this month, we see the extreme leftist power take place. >> the other thing, interestingly, is that we're getting anti-austerity and anti-european parties coming to the fore but through quite the political spec truck. in greece it's coming from the left and it shows when we were in tough economic times, it's so easy for parties to make

populist calls. that is something that brussels is used to. they're not coordinated. it would be far more concerning if they were able to pull together those strings and relationships and be a moreco heative force as far as the population is concerned. that doesn't mean it's not a worry. we have to take a quick break. still to come it's been a rocky road in russia's economy in 2014 with sanctions, plummeting oil and turning the situation around this year. we'll discuss. we're back in a few minutes. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000

businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2.

the new year and in california, a statewide ban on plastic shopping bags at supermarkets. that stays effect this summer. also in california chickens get a little more freedom. egg producers are now required to give birds in cages enough room to extend their wings. don't think about posing for a photo with a new cat. new york has banned tiger selfies, especially with young men on dating sites. wilfred! >> that's not me.

you're saying you're not allowed to post them you're not allowed to take pictures? there's not a lot of tigers in new york you can take selfies with, is there? >> i'm a little confused. would you use that as a way to perhaps attract a woman. >> would it work? we'll see. on that note, we want to hear from you. what new law would you like to see brought in where you are? perhaps you'd like a ban on the selfie stick which was being doubted as a possibility given how nowing there are to some people. if you want to joins the conversation, get in touch with us us @cnbcwex. >> how about we only work the weekends? >> switching around the other way. >> yeah. >> i quite like that. i think that would be too much. >> i do like the idea of a four-day week and a three-day weekend. that perhaps is a little bit more demanding.

so if our producers are watching please consider that. if not, we might -- >> let's move on. the russian government will allocation the 150 billion rubles that it takes to support a major energy project. it is part of a plan to restore confidence in the country's banking system as the country faces pressure from sanctions, oil prices and a weakening ruble. we see further pressure on the ruble midweek after what seems like a brief reprieve. this is a support for the government to the russian government and it's a stimulus for exporters, too. >> yes. behind the decline in the value of the ruble are likely to remain fair. we're talking about low oil prices although it's very difficult to predict oil prices.

but it seems like we are entering a new phase in the cycle. also the other factor will be sanctions. it's difficult to imagine sanctions will be lifted. there might be some compromise coming in the next months. truth is unlikely to give -- in the future. the futures sanctions likely to wait on the ruble indirectly. so i do expect that to remain. >> and that they'll continue to allow it to appreciate. i guess those things are static. are the central bank going to try and intervene to a great extent as opposed to maintaining a more calm dissent, i guess is the question? >> yes. the central bank has been under huge pressure over the last month on o two. they have intervened verily in november and december.

it was in some cases counterproductive because it was fueling expectations that would then count on intervention to step in at the precise time. so they say no let's free float. however, they retain the right to intervene if and when they feel the fall is particularly dramatic dramatic. but i think the main realization is that these interventions are not going to solve the problem and they're depleteing the reserves. >> other measures are supporting the corporates and the banks that we've seen and we've got debt repayments of $20 billion across the banks and corporates next year. trust bank has had to merge trust bank in order to secure that. going into q2 we've got rates at 17 parking lot. what's the excuse in q1? what should we be looking out

for? >> we have to remember the banking sector in particular and the economy, as well there is more sort of intervention going on even in normal times than you see from the service. in other words it's an economy that is dominated by personalized relationships and the banking system was sort of this top down metric of ally yaens finances the right project with the right person than the most productive the most

appealing process with the likely return. so such an environment multiplies when there's a shrinking liquidity situation and the need on repay foreign denominated debt. >> we saw protests rise up in moscow a couple of days. is that significant? >> they're fairley worried about even a small process and even other forms of demonstrations. there's been a tightening of control to the extent that russia has become more of the -- and we are not expecting any kind of mass projects any more within the next 12 months simply because most russians particularly in the provinces are heavily dependant on the state and because the cost has gone up in the last several years in terms of heavy fines, improvement, potentially and so on. >> the sentence was interesting there. we have to take a quick break. let me give you a look at how the u.s. futures are trading on the first day of the trading year.

stay with us.

welcome to "worldwide exchange." mario draghi says the ecb is at greater risk of not fulfilling its mandate for stability and he remains to act early this year. interest rates following a new year's eve sell-off. the s&p turn in their biggest daily fall since december. general motors forced to recall another 82,000 suvs and pickup trucks, even more problems with ignition switches.

according to business insider reports would pick up its table channel properties including the food network. >> yooir watching "worldwide exchange," bringing you business news from around the global. now u.s. futures are point to go a positive bounceback after around about a percent of declines across the board on the final trading day of 2014. of course that didn't take away from significant gains that we saw in the u.s. over the course of last year. the dow is up 7.5%. the s&p is up 1 1.4% for the year and the nasdaq is the best performer, up 13.4%. it like we're going to kick off 2014 with more gains. that is not the case nin europe throughout the day.

we've had pmi data out from many countries. france and italy, in particular the disappointment that sparked. but there were positives, as well. germany was a positive bounce back and ireland in particular showing that there are green chutes of recovery in some of europe's most fragile economies. as you can see, the dax in germany, down 1.6. italy managing to surprise to the upside, 0.75%. led us let's look at bonds, as well. this week as a whole has been a rather risk off sentiment and the bond yields high like that fact. we've had oil price weakness through most of the week despite some surprise issues in libya. pushing yields in germany to 0.56%. the correlation in global bont markets meant we saw some buying in the u.s. we're at 2.19%%.

the uk ten-year yield is at 1.77 and in italy and spain, as well we've been at record lows during the week. the spread has fallen below 1% for the first time in a long time. let's look at forex. the u.s. dollar was the story throughout 2014. the broader u.s. dollar index rose over the course of the year. and we've kicked off this year with more u.s. dollar strength. the u.s. dollar gaining about 0.5% against the yen. similar amounts against the australian dollar, which is at 0.814. and also against sterling so about 0.5% across the board on the major currency players, selling 1.54.7. despite the dow and the s&p posting their biggest daily declines, it was a seller year for u.s.s.

meanwhile, the u.s. dollar index turned in its best annual performance since 2005. the market now focus owes when janet yellen could first raise rates. joining us from america is anthony chan chief economist at jp morgan chase. very good morning to you and happy new year. >> happy new year to you. >> let's talk about that big question. when will we see rates rise and when will that mean for markets? it's important to distinguish what the reason is for the rates going up as its effect on equity markets. >> well i think that's true. it's very important to ask the question why are they raising rates? because the u.s. economy is improving, labor markets getting tighter and it is not because they face high inflation. as you know the whole world is under a sea of disinflation

trend. but when they will raise rates is important and i think sometimes along the middle of this year the federal reserve will start raising rates. but even more important than that, i think the pace will be gradual. i don't think it's going to distort or upset financial markets all that much. >> let's look at the performance we've seep. we've got a chart that you sent us. the s&p 500 performance since 1990 when looking at rate rises. that's pretty encouraging the nerms of the charts. >> yes, it's encourageling. what you see in some work that i've done when the federal reserve is raising rates because the economy is getting better and i measure that by looking at the changes in the federal funds rate being greater than that of the federal funds rate. when that happened the equity rate goes up more than 10%. when it occurs because inflation

is accelerating even more because of the change in the fed funds rate we tend to see the end market isn't doing well. so in a world where the economy is improving, which is what we're going to have in 2015 the u.s. equity market does better when the fed is raising rates. >> on new year's eve, the u.s. still decided to release a few data points when many people weren't looking. we see the u.s. chicago pmi. both of those did disappoint a little bit. is that any cause for concern? >> not at all. you're still seeing the manufacturing sectors in expansive mode. they're going to get the overall ism survey for the united states today. by and large, manufacturing expanding. is it slowing down a little bit? yes, it is. initial claims went up a bit, but they're still at levels consistent with a very strong

employment report that's coming. if you look at the first 11 months of this year what we saw, in fact was that the employment report grew almost 20% more than the market consumgsz expected to grow at the beginning of this year. so when you're looking at nonfarm payroll gains averaging close to 240,000 in the first 11 months of the year you cannot go away with a message that the labor markets are getting weak. by the way, that initial claims number that we got when no one was looking is in that period of time where everyone knows that the data starts to become distorted because of the holiday period. the week before and weeks even before that you continue to see nns that were very encouraging. even with the slight disappoint in the in the holiday week these numbers are still not bad. 13.4 for us national dak, 7.5 for the dow. was that justified?

was it driven by multiple sxapgzs or was this driven by earnings? >> i think this year you saw much stronger earnings. margin res now at record levels. i would love to tell people that stocks are cheap, but they're not. when you're looking at price earning ratio in the 16 level looking at forward earnings for 2015 they basically are in line with historical levels. what can we expect for 2015. what we can expect is the equity market will grow by the pace of corporate earnings and, of course, dividends. so i think a reasonable expectation is for 2015 you might see it growing from 8% to 10%. we can see a surprise in the s&p 500. maybe 1% or 2% a little higher than that. the thing to keep in mind is stocks are no longer cheap.

but at the same time 8% to 10% when inflation is running well below 2% is not a bad place to park your money. >> anthony, thank you very much. chief economist at jp morgan chase. an though noon will stay with us while we have another chat with him later in the show. the december ism manufacturing index is out at 10:00 a.m. eastern. the sector is growing. still do come here on "worldwide exchange," yahoo! may have its high on becoming a major media company to buy the food network. we'll talk more about that after this short break.

welcome back. mario draghi says the governing council is ready to act early this year. futures point to a positive u.s. market open after the sell-off on new year's eve. and problems at general motors force the company to recall another 83,000 vehicles. ya should may have desires on become ago major media company. beside insider reports the

company looks at buying others. yahoo! began talks with scrips to buy a food network. business insider says there's rumors this past summer yahoo! was interested in buying cnn from time warner. yahoo! is up 1.4%. the apple watch is one of the new year's more anticipated gadgets, but not everyone has it on their must-have lists. fred wilson predicts the device will be a flop. wilson runs union square partners and has been an early investor in twitter and zinga. he says the apple watch isn't the home run product like the ipod, iphone and ipad because not everyone will want to wear a sxurt on their wrist. a sovereign bond buying program may boost the ecb's balance is sheet.

we recently sat down with the chief european economist at nomura and tony morris global head of quantitative strategy to find out why that he have this view. >> on the 22nd of january, we're fairley comfortable with it given what's happening in terms of deflation. we think inflation next year will be 0.2 on average. we have negative inflation numbers. we might have it slipping into negative territory. i think the attempt is different from the impact. and where we defer is on the impact side. so i can't see how, you know it's really bond buying or 500 billion of bond buying as we expect,.much of a difference in

terms of the labor market, for example. the channels within the monetary union are very, very difficult. we've got a labor market situation which is incredibly difficult at this pick juncture. so i find it hard by reducing further the costs which will happen, we will see much of the difference in terms of domestic demand. >> is the reason that companies are not hiring and not investing in their own businesses one of real weak economic -- or real end user demand or is it ultimately down to confident? and if it's about confidence the let of action from draghi or the threat or this or promise of this new investment program from the commission surelily these will all work in a positive way to encourage ceos to spend that money .hire those people. >> let's hope so. i think we can start with the

investment program. which investment program, right? juncker's program, you put one euro on the table and you hope you get 15 euros on the table. i'm not sure this is going to work. even if you take it full scale, that's equating to 0.25 of gdp per year. that's sufficient even the assessment we're making in terms of the demand gap we have in the region. it's growth in the right direction, of course. but the question is how much investment do you need now to keep the inflation target over the next three years or four years that the ecb has? and i don't think that what is going to grow on the table is going to be sufficient for that. we've got half of the consensus forecast of the ecb forecast a week ago, including qe program and including juncker's investment program. >> how does that express itself in quantitative strategies?

>> well, i think there is a lot of reason to take's jack's view seriously. our answer is usually you don't have to worry about that because it's already there. europe is already worse than japan if we measure it from the economic peak. so you can make money in these situations. it's not a no-win situation. however, you have to pretty much throw out the textbook. everything we ever learned about investing usually is not going to work in this type of environment. and the japanese institutions that did the best in this type of environment were those who were the most bold in basically throwing out whatever they were told to do in the u.s. and europe. >> so what do you do?

>> yeah okay. >> what are the strategies? >> very very good question. one of the big surprises of the japanese context is how badly equities do. most people are programmeded to believe, buy equities because they were deliver you. you hold them for the long-term, if you ask a japanese person what their long-term view on equities, they won't have such an interpretation. now, the new year means that a lot of new lords coming in as well. in the u.s. and california there's now a statewide ban on plastic bags. also in california chickens get more freedom. don't even think about posing for a big photo with a big cat.

tiger selfies are now banned. we're going to use this moment to get opinions from you. we want to know what new law would you like to be brought in in 2013? perhaps a ban on the selfie stick altogether. we've had one e-mail in already from robbie guerrero. he said it would be nice if starbucks could give you a grande coffee once a week for free. it's a very nice idea. i'm not sure sadly, that we would be seeing it. join the skas here on "worldwide exchange." worldwide@cnbc.com or @cnbcwex. social networking site ello has its a alternative to facebook. can it stay for long? read more on that story at cnbc.com. plus a food scandal staring

youngsters towards new ways of buying fresh produce. find out more by heading to our website, cnbc.com. coming up, 2014 was the year when companies said let's make a deal. mr on the global m&a market after this break.

welcome back to the first episode of "worldwide exchange" in 2015. the s&p is likely to he up about 7 points. the dow around 65 points. that didn't spoil a stellar year for u.s. return markets. now, the euro has hit a 29-month low following comments from mario draghi. speak at germany's newspaper, draghi jurndz lines the ecb would be ready to act against low inflation earlier in the year adding quantity taken easing was still on the card. eurozone inflation is currently at 0.3%, a far cry from the 2% target. the iranian deputy minister has called on saudi arabia to

halt the fall in oil prices. still with us, is anthony chan from jan p morgan chase. let's talk about the oil price and its likely impact on the u.s. equity performance. you've prepared an interesting chart on this which does ug that even if in the short-term there is correlation with ek markets, it's almost always beneficial for equity markets. >> it really is, will forget. if you look at u.s. equity markets, whenever oil prices drop by more than 40%, i know there's a big department. i've looked at it since 1990 during economic expansion. as you start to see that through, you get really impressive gains in the equity market, close to 13.5% for the s&p 500 six months later.

how about during recessions because some people will say during a recession there's less demand, therefore, the decline in oil prices symbolize the trouble ahead. six months later, the u.s. equity market still grows 10.6% on average. that is. stronger than what you see in oil prices when they're not declining. whatever the channels or the mechanism mechanisms? we know consumers get a big windfall of money. a about part of it will be spend where margin is spend. keep in mind that when you look at main street america, the ones that spend their money in bigger oil, or higher visits most people spent a little bit more. by and large, it is a positive. so consumer discretionary stock and things like that are going to benefit. by the way, i think at some

point in 2015 oil prices will stabilize sometime around the second half of the year as they oil -- start too just oil levels. >> what about the energy sector itself? would you be dipping into that at the moment? are valuations attractive? >> i really do. i know what you're seeing is huge declines in many of these energy companies right now. if we see stabilize in oil prices, what you tend to see is those equity prices tent to start rising well in advance and certainly will do much better in the second half of the year. we're not going to see $125 in brent or certainly not even $1 00 in the next six months. but we are going to see oil prices moving higher. when that happened equity prices that have suffered dramatically will start to outperform. and i can that's why dipping in

dollar cost average and buying some for longer periods of time maybe in the next six to 12 months or longer is probably going to be a good investment in this environment of depressed energy prices. >> i want to touch on europe quickly before we let you go. mario draghi's comments seem like he's more ready than ever to get on with a bit of quantitative easing. do you think january 2nd will be the moment he does that? >> i think on january 22nd you're going to see a lot more clarity clarity, a lot more transparency. not only is mario draghi telling us that he's concerned about in flagz and that they will continue to do whatever is necessary to stabilize inflation pressures, but one of the things financial markets should

understand, never underestimate the power. we know monetary policy has improvement has long and variable acts. when you start to see all this stimulus, just like people were nonbelievers when the federal reserve started doing quantitative easing in europe i think in 2015 we can possibly get very close to seeing 1% growth. not 5% growth. a couple of years ago, they had no growth. we are starting to see improvement monetary policy in europe is going to work. close to 1% growth in 2015 and the central bank is not going to stop until they skeet. and that doesn't mean kwaufb tafb easing is going to stop. they're going to continue to do more things until it sticks. in. >> anthony, thank you very much for that and a happy new year to you, as well.

now, liverpool football club has confirmed that captain steven gerard will lead the club at the end of the season. he will not retire from professional football, but no decision on a new club has been made. the club is concerned that the duty won't put him in direct competition with liverpool. i wonder if his next move will be in the mls in the united states. bono says he will never play the guitar again after his plane crash in new york. he said the recovery has been more difficult as i thought. as i write this it is not even clear that i will play my guitar again. former new york governor mario cuomo died on thursday at the age of 82. his death came on the same day that his son, andrew was sworn in as a second term for the state's governor. cuomo turned down several -- to run for president.

now, just before we head to break, let's have a look at u.s. futures for the first trading day of 2015. it's expected to be a positive one. the s&p likely to he up around 7 points. the nasdaq by 18 points. we're back in a couple of minutes.

welcome back to the new year and welcome to "worldwide exchange." the s&p showing their biggest fall since december. mario draghi says the ecb and the governing council stand ready to act early this year. general motors has another 83,000 suvs. and yahoo! may have its eye on becoming a major media company, according to a business insider who says it's important to pick up its cable channels, including the food network. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. a very warm welcome to the show. now, u.s. equities have a little bit of a sell-off. we're down about 1% across the

board on the final trading day of 2014. but that didn't dampen what was a stellar year for u.s. equities across the board. 13.4% return to the nasdaq 11% for the s&p and the dow was up 7.5%. it looks like we're going to kick off this year with a little bit more positive returns. the sow likely. let's look on european markets for the story are not the same. the ftse 100 down 0.2%. germany down 0.6%. france just below flat and italy up bucking the trend up. this comes off the back of quite a broad range of pmi data we've had out of europe so far today. ireland and germany doing pretty well on those readings. italy and france disappointing. let's look at forex where the story of 2014 was the u.s.

dollar's rally against the broader index. the greenback rose 12% as a whole. that's the best year in nine years for the greenback. and it started this year in a similar trend. it's up around 0.5% for all the major currency players. that comes after mario draghi. there's about a 0.6% decline for the yen today. the aussie/dollar is at 1.813 while sterling is at 1.54 so far today. let's look at bonds. we've had oil price weakness which hasn't helped despite supply in libya, the oil price has continued to weaken over the past couple of days. in the u.s. yields at 1.29% prm. germany around a record low,

0.45%. the uk continues to be highly correlated with what is happening in europe and we're seeing yields on the ten-year in the uk below that. 1.76. in italy, 1.81. in italy and spain last week -- sorry, earlier this week both seeing record low owes their ten-year gold government debt. despite the dow and the s&p posting their biggest daily declines, last year was a stellar year for equities. the russell 2000 hit new all-time records for 2014. >> hilly, i wanted to kick off with the new year. we saw strong returns in the u.s. bond market. this coming at a time when it was a new evening. does that mean one of those two

asset classes is due a correction as we kick off 2015? >> ultimately we will see tightening. it's a 2015 or 2017 story. so we could persist with these very low interest rates and with a booming stock market for another 12 months. it's very possible even though the nay sayers are pessimistic. >> and, hellry you write in your notes that this lack of oil price inflation gives janet yellen lots of room to be patient. do you think she welcomes that situation, given that it's not a demand-led oil price weakness

that's causing it in the u.s.? oh, yes. it's quite a relief for janet yellen. it's a debt cat balance. you have texas, north dakt, mexico. what happens if the price tumbles so much that we start to have tumble weed downs in the united states? right now i'm excited, the market caught a bid with oil prices. but also, we might see a stabilization in the entire political economic landscape. countries like venezuela could certainly implode any day, not any week. and that could, of course have ramifications to us. >> let's talk about that in feeo politics generally. there have been so manibyo political issues in 2014. they didn't seem to derail the markets. they haven't derailed global markets. do you think geopolitics is a big risk for 2015? >> geopolitical risk always is because the market absolutely abhor's any kind of uncertainty. just like we saw for 2014, we were able to maintain and march higher, it it was ebola or isis.

we can be at 2250 on the s&p 500 as we end 12 months from now, 2015. >> let's talk about some of your best picks. first of all on a sector pick for 2015. you still like health care and biotech despite a strong performance last year. >> well we're finally at the place in biotechnology where we're realizing the actual benefits of the therapeutics. i love the stock regn regeneron. i see it marching as high as 6 to $7. it's probably not an acquisition story, it's a company that has a they'repy for macular go generation and a drug that will reduce cholesterol. now regeron bought a fast track

packet from the fda. we could see this drug coming to market in 2015. very important for oncology and neurology. but a company like this that has real revenue, a decent pe and many drugs on the horizon, that's one that you want to own. it's no a year just to buy the indexes. it's a year to although at selective stocks. >> can you clarify whether you do hold any of the companies that we're looking at? let's talk about one of the beneficiaries for the oil price, virgin america. >> this is my number one pick for 2015. as inverters stop me and say, hillary, what's your stock? that's what i do. it's virgin america.

virgin america benefits the 19% bump up for them in terms of revenue and profitability margin because of the lower fuel prices. jet blue is the model, virgin america takes it to a five-star version of a jet blue. and just think about the market caps. you're talking about a company to be 20 times bigger. i know it takes time but virgin america is doing it right. with the fuel prices low, the other thing is the float is very low. institutions will eventually get in. most institutions have to wait a few months if not a few quarters. for the new ipo. virgin america is the way to go. >> hillary, both of those stocks, you own them? >> the firm owns both of those stocks.

and general market outlook, will jan january be positive or is there a little bit of a correction? >> i expect to see a correction. it's inevitable, it's natural, it's going to happen. we've, of course seen the volatility spiel. and watch those junk bonds. the prices failing, yields rising tells us everyone should be careful, keep their powder dry and then get in there and buy. >> thank you very much for joining us today and happy new year to you, as well. let's take a look at today's other top stories. thomas pickety has refused france's top award. he says it shouldn't be the government's role to design who is honorable and they should focus on reviving europe's economy instead. his book capital is the amazon's best sellers list having sold more than 1 million copies. snapchat rang in the new

year with a little more cash. it closed its $486 million round of funding. this follows a long series of talks with investors that began in april. last year, reports set the fund-raising value at $10 billion. ya should and venture capital firm -- have been linked to snapchat in recent months. sales of music downloads fell in the u.s. and the uk last year. the financial times says technology tall song sales fell 112% in the u.s. according to nelson. 2014's top selling artist was taylor swift. coming up 2014 was the year when companies said let's make a deal. we wrap up the staggering

numbers in global m&a markets after the break.

welcome to cnbc. for more on the story, let's get

out to cnbc hq are landon dowdy is standing by. good morning to you and a very happy new year. >> thank you, wilfred. good morning. this past year was one of the best for m&a activity since before the start of the financial crisis. more than 40,000 deals were announced in 2014. worth nearly $3.5 trillion according to thompson reuters. that's the most activity since 2007. just the fourth quarter, more than 9 the 00 billion in deals were made with the u.s. accounting for 41%. many of the same factors that had existed since the end of the federal crisis were responsible for the surge. giving buyers a more valuable currency to offer targets. the s&p 500 rose more than 11% last year. energy was the busiest sector with nearly 12% of the merger market. pharma was the secretary with nearly 6% of the market. the biggest transactions of the

year are two potential changers in the telecom industry. comcast comcast, a parent of cnbc, offering $45 billion to buy time warner cable and at&t's bid for directv. the resurgence in m&a means it was a good time to be a financial buyer for both buyers and sellers. goldman sachs tops the rankings. morgan stanley was seconded followed by jpmorgan. corporate advisers say companies have adapted well to up certainty certainty, be i geo politicalpolitical concerns in ukraine. wilfred, back to you. have a good weekend. >> thank you landon thank you very much. international rescuers have joined the search for airasia's black boxes.

so far ten bodies and pieces of the airbus a-320 plane have been recovered. while the operations director of the understand meeshan search and rescue authority says there is evidence they're getting closer to finding the plane fuselage. the state run news agency in china says the government must take responsibility for what it describes as a lack of vigilance and sloppiness. and questioning why so few police were on duty as thousands of people flocked to shanghai's water front to celebrate the new year. china's foreign ministry didn't specify what the violation was and said a diplomate has not been charged. before we go to break, let's remind you of our hl headlines. the ecb is not at risk of achieving qe.

pints point to a positive u.s. sell-off and problems at general motors forced the company to recall another 83,000 vehicles. we'll be back in a couple of minutes.

welcome back. let's update you on how market are trading in europe on the first trading day of 2015. we're in the red, but not too significantly. the stoxx europe 600 is flat. the markets did weaken off the back of disappointing pmi data in particular out of italy and france. we've had decent numbers out of europe and france. the result is a bit of negativity in the german market. that is jau set by gains in

italy. france and the ftse 100 up flat. this follows a year where european markets were broadly flat. of course a very different story for the u.s. in 2014 was there was very strong market returns across the board of the major indices. it looks like we're going to kick off 2015 in a similar vein. this would offset a 1% decline across the board on new year's eve 37 the dow is forecast open up about 76 points. the fravt likely to he up about 20 points. let's take a quick look at the forex markets. today the u.s. markets are up around 0.5% against all the major currencies. 120, the price of the euro. the u.s. dollar is up about 0.5%

against the yen, 120.44. cable is at 154.5. let's give you a rundown of what to watch this trading day. this will remain well above the reading of 50 which the sector is growing. now, let's talk with been lichtenstein, president of traders audio.com. he joins us from the cme. a happy new year to you this morning. my guest guest i had on did say a small fraction of around 4% to 6% was inevitable in january. would you agree with that? >>. >> i think a small correction around 4% to 6% has been inevitable for a year now at least. the big question is when is it going to happen? anyone that sits here and tell us you when it's going to happen

is lying. you have to look at areas of value that could establish within that activity. most recently we've seen values saubld near the highs which means that we've seen a meeting of the minds, if you will between the buyer and the seller. that being the case, most recent price activity reflects there's no indication that the perception of value isn't still higher. so we continue to give the benefit of the doubt to the bulls as we have been solid throughout 2014. it seems like the trends continue right now into 2015. certainly seeing that across the board in the dollar. limited conviction trade in the medals and yet the energies have been coming off significantly. so, yeah, i think equities right now are king if you will. it seems to be a continuation of the patterns that we have been

seeing with no end in sight, if you will. >> what is your top pick in the u.s. for the year ahead? >> that's a great question. i think rite now we're seeing some interesting activity in the small caps. i think with the recent surge we saw in the russell above that 1200 level, baermt that's the one kind of fly in the ointment if you will right now in terms of you know the uncertainty associated with this recent rally. keep in mind throughout 2014 the russell lagged severely. closing the year out, we saw a big serve in terms of the resolution, so a pullback. we have to keep a close eye on the russell. >> thank you very much for joining us and happy new year to you, as well. >> you, as well. >> that's it for today's show. that's all we've got time for here on "worldwide exchange."

i'm will freft frost. happy new year to you. "squawk box" is up next.

sfwhoo and good morning. wrapping up another strong year for the major stock averages. the s&p 500 with its third straight year of double digit percentage gains. that is the first time it has done that since the 1990s. winter isn't coming it's here. the new year bringing in snow and plunging temperatures across america. should step up the travel nightmares. and the death of a political icon former new york governor mario cuomo passes at the age of 82. it is friday, january 2nd, 2015,

and "squawk box" begins right now. good morning, everybody. happy new year and welcome to "squawk box" here on cnbc. i'm becky quick along with brian sullivan. joe kernen and andrew ross sorkin are both off today. let's get to some of the big stories that we've been watching. wall street is posting very strong gains. marissa mayer could be turning to table division for a possible acquisition. and jeb bush resigning from all nonprofit boards as he moves one accept closer to a run for the whose. the major market averages closing the year with the gain of 7.5%. that is its sixth straight year of positive gains in a row, but it couldn't close above 18,000 after losing steam on the final three trading days of the year. the s&p 500 rising more than 11% with the nasdaq having its strongest performance of the major averages.

it was up more than 13%. both the s&p 500 and the nasdaq are on a three-year winning streak. that hasn't happened since 1995 1990s is the last time that happened? >> good old days. >> people are going to tart to get their end of the year investment accounts 401(k) statements. they're going to look a little better. by the way, the morning theme song should be -- what's the bill weathers "just the two of us." maybe we can cue that up. certainly one of the big stories of last year was the oil shock. the price slide just kept going. oil finishing the year down 46%. it hit 5 1/2 year lows earlier

in the week. the low trade was $52.75 a barrel for wti. right now, we are just above that level. now a iraq is a huge part of the story. the company saying it is now pumping 2.94 million barrels a day. that is the highest average daily output for iraq since back in 1980. >> really? >> yeah. have lost nothing due to isis. that is part of the surprise problem, actually. the ten-year yield moving a little bit, still a very low 2.6% for the year. the u.s. dollar stays strong. last year was the best for the u.s. dollar against the other major world currencies since 2005. >> the euro by the way, that is a 4 1/2 low for the euro. >> i think it was last year the dollar rose against every major world currency for the first time in, like 20 years. >> central banks, that's the action we're talking about. and exactly. we're just a little ahead of the curve, i think. gold, we're down what a buck? 1182.20 per ounce, becky. 2015 starting off loss of a

political icon. mario cuomo has died at the age of 82. cuomo served as governor from 19 1983 to 1994. he hated not being in his own bed. i died just hours after andrew cuomo was sworn into a second term as governor. turning now to corporate news not a good start to the year for general motors. a number of vehicles it's not big, but it is not linked to fatalities thankfully. the automaker expects in numbers will be added to the effect. impact on autos this time include the 2011-2013 silverado,

certain uconns and cadillac escalades. 2014 was also the year for the recalls. if you have a problem, a defective auto part something like ta ka ta air bags affect just about all of the auto measures. >> it didn't appear to impact buying. the best since 2006. yahoo! an interesting story are they targeting a cable network? the business insider network could be looking to buy a cable insider. there is talk of yahoo! get this, having a potential interest in cnn. we should talk about snapshot. that is the app that let's you take pictures and send them those pictures disappear after

viewing them. in a new year's eve file snapchat disclosed it raise $423 million, no names just yet. snapchat is among several tech start-ups with a $10 billion plus valuation. and elon musk doing a filing of his own on new year's eve. the founder of tesla and his wife with are divorcing for the second time. his wife and he talula riley announced they are splitting amicably after they remarried in july of 2013 following a previous divorce. musk agreed to give riley $16 million in cash and other assets as part of that settlement. a new year often brings new opportunities. markets get the chance to hit the reset button. plus 2014 proving to be a solid year for stocks. the s&p 500 and the nasdaq were the standouts with double digit percentage gains. given all that, should investors be bracing for a bumpy ride or a

bumpier year ahead? joining us now, boris schlassberg. and dan, let's tart with you. we are talking some of the technicals here. we are looking at three years in a row of double digit gains for both the s&p and the nasdaq. that has some people starting to worry. can this trend continue? >> long-term, we think it can. certainly you're starting the new year with the markets extended here. there's a lot of thought coming in a time of people talking about the small cap, the fed. i think you should see some shop over the short run. longer term we think the technicals are still there. we don't only look at sore of surprise trends but we look at trends and valuations. we look at trends and the economic data. typically a secular bull market which we believe we're in right now, that doesn't end until

valuations and multiple on the s&p 500 hits until the middle and upper 20s. so from that vantage point, we're starting the year in the mid to high teens. you could see some pullbacks in the markets here. >> is 28,000 a key peckal level or is that a nice, round level that people kind of pay attention to? >> yeah. it could look good on a t-shirt, maybe. what weir looking for -- and there's a number to go by, but we're watching the full year presidential election cycle and we're heading into the third year. typically the data with that statistic was very promising for the markets. in other words, going back at least to the industrial revolution, u.s. equity markets have been up approximately 80% of the time in the third year of a approximateliat election system. that's what we're heading into.

in fact our call has been for the last year and a half or so that u.s. equity markets have transitioned into what we call a reflationary growth cycle. we think u.s. equities are going to continue to outperform both the commodity markets, general commodities, but as well as long treasury bonds. we think there is a bottom interest rates in this country. we've hit the bottom. that doesn't necessarily mean rates are going to go straight up from here. we're going to have any type of hyper inflation or any spiral. then on a relative basis, we think equities are going to continue to outperform as rates start to push higher and as commodities continue on region that trading range that they've carved out for themselves. >> let's talk currencies a little bit. we're looking at the currencies hit ago 4 1/2 low against the dollar. is this telling us about the trend for 2015? >> when it comes to effects, you may have a very divergent story.

i think the euro is going to get there because the ecb is definitely going to ease. it may even stries the market and begin qet beginning of the year, at the next meeting next week. because i think at this point, draghi has made up his mind. he's going to ignore the germanes. but, you know looking at 2015 after the last two weeks, we've been getting this feed in my facebook feed for a movie called the most violent year. and i've been thinking maybe 2016 is going to be the most volatile year as we go forward. the one thing i see is an enormous amount of come place eptsy. 1996 to 1999. what happened in 1999 when you look at equities? it was the setup for a very dangerous year. >> but that was more than three years. it was like a five-year run before things actually crash. >> and we may extent further. all i'm saying is i think there's an enormous amount of danger signs.

both of those are send to be a very, very dangerous signal. the u.s. economy is doing much better than the rest of the world. the key will be whether a lot of that is going to translate into wage growth. if we start to see wage growth yes, you're going to see continued strong dollar trends because the interest rate story is going to many much more positive. but if we stall because the rest of the world simply cannot jump start itself, we may be in a push-pull cycle for the nmt conduct of months. >> what are mer chas levels right now? >> 50i78 sorry, what are the what? >> the margin levels. >> they're now at record highs. i think it's 2.5% of gdp. that is a brand new record high. that tends to be a very very scary signal because it tends to show a tremendous amount of

complacency. >> we were looking at the ten-year yield just a moment ago. 2.2%. you can't tell me there were more than a hand full of people predicting a number like that at the beginning of 2014. strange things have been happening in recent years that throws all the expectations off, that changes and goes against consensus. if you were to pick one thing in the consensus right now, maybe it's oil, where the dollar is headed, if you were to pick one thing and say this may not be the correct consensus, what it it be? >> let's seem we have a correct in equities. number one, i think yields continue to go lower because of this trade and secondly the fed tightening goes right off the table. the fed is not going to tighten if equity prices drop by 10%, 15%. no matter what they say. they're not going to exacerbate

the situation by tightening rates. at this point right now, the one thing that is keeping rates low are low oil price. it's very difficult to see how rates are going to start to go up. dan, how about you? predictions, counter predictions for 2015? >> certainly. i mean, the amount of predictions for 2014 a lot of people thought rates were going to go up and there were a lot of people on the wrong side of that trade. there is a lot of complacency out there. there's not a lot of euphoria but there's a lot of complacency. rates lower would be a contrarian call here. i think you have to have that on the back of a sideble significant market correction. i think that would be in excess of 10% down on the s&p and dow. that would be a contrarian call there, becky.

>> boris, what do you like for 2014? dan said the u.s. stocks could continue to climb here. what about you? >> sticking to my own domain, i like the euro lower. all the forces are aligned against the currency at this point. i think the case for qe is so strong, we're going to get at least 115 in the euro going forward. >> gentlemen i want to thank you both for being with us today. >> thank you. happy new year. >> you, too. still to come here on tr friday "squawk box," if the oil slide will continue and how low your gas prices might go. plus, your political play book for 2015. and later, the new year has just begin and already who is in

the hot seat? as we head to break, take a look at this day in history. what happened? we're back after this.

good morning and welcome back. happy trading new year. the stable is now set for the first ever college football championship at the highest level. the playoff kicked off with number 2 oregon and number 3, florida state. oregon capitalized on florida state's many, many mistakes. their way to a blowout, 59-20 win in the rose bowl. the oregon ducks racked up 639 yards of total offense. that's a lot of offense. they scored 41 points in the

second half alone. >> dude did you watch this? >> i watched the first game. >> i watched a lot of what happened here. afterwards, florida state, something like 70% of the players walked off the field without agreeing to shake hands with the other team. >> jameis winston came out and shook hands. how does the coach allow that to happen? >> i thought it was a crappy move by florida state. go out and say good job, you beat us. >> and congrats to the quarterback for making that move and doing it. >> the upat is he the of the data goes to the ohio state buckeyes. they rolled the tide, beat alabama 42-35 in the sugar bowl. ohio state racked up 537 yards of offense. the stage now is set. ohio state will play oregon in arlington, texas. cowboys stadium on january 12th. there's going to be a lot of ohs. >> o for ohio state, o for oregon. >> they both make that symbol. you're going to have the green and yellow against the silver and crimson. >> i know you you weren't up for

that second game. someone else in your family was? >> my brother and sister-in-law both went to ohio state. i thought ohio state would lose the game. i doubt they're watching because they had a big night last night. his name is brian, also. brian, brother-in-law, if you happen to be watching need i remind you, the only loss came for ohio state came to my virginia tech hokies. >> didn't you wake up your house this morning? >> no. >> maybe we should call him and say congratulations. let's get to the national forecast right now from the weather channel's alex wallace. alex, happy new year. great to see you. >> happy new year to you guys, as well. everyone is excited about college football players. now we have to deal with this weather. now to the northern extent we have cold air in place farther south. not as cold. that's what you'll be dealing with, the bulk of the rain. that's what we'll see today spreading from eastern portions of the rain into the southeast. could see more freezing rain

across parts of oklahoma and texas. tomorrow, that severe storm gets going. mississippi down in the southwest of louisiana. that includes you around new orleans. but the northern extent is where we'll be focusing on the wintry stuff. freezing rain sets up for you tonight and into tomorrow we get more of a mixture in the pink. we'll find snow spreading up into portions of the upper midwest where we could see areas 3 to 5 inches of snow. even more than that here across the u.s.-canadian border. as we move into new england, some areas here for ski country will do pretty well in these spots. and behind all of those skies, we've got more cold air coming in. the end of the weekend, the jet stream dives way south. all that cold air bottled up in canada, that will move in. high temperatures will be 15 to 25 degrees below average and that means a lot of areas will be seeing highs in the single digits. back to you. >> all right. thank you very much. we'll talk to you in a bit. meantime the free falling gas prices have meant big savings really for all of us.

according to aaa, americans saved nearly $14 bucks on gat last year. what will the new year bring and how do energy exports look so far? joining us this morning, matt smith of snyder electric. matt, good morning. i paid $2.11 in new jersey the other day, it was spectacular. lowe how low will gas prices ultimately go or is this the bottom? >> i think we're probably bottoming out. what you see is gas prices on a retail basis hitting the lowest point in deet. we'll see a gradual increase as we move through the first quarter and into the second quarter. the national average is 225ish at the moment a gallon. that is like a dollar less than at this time last year. we purchased sort of 9 million barrels of oil a day of gasoline, that's 378 million

gallons. that is $378 million of savings each day for the u.s. consumer. year over year last year we averaged around $3.20 a gallon. if we see that around 206, that is a savings of 80 billion for the u.s. consumer. that is an excellent thing. >> it is an excellent thing and it impacts everybody in a positive way. how much lower can prices go given that eventually low prices tept to increase demand which then tends to stabilize prices. there has to be a floor somewhere as americans drive more. >> i would make the case the u.s. is seeing the best benefit of this wsh although demand isn't necessarily going to increase. we're not going to drive more because our prices are lower. but in terms of growth and demand, we're going to see that tempering. that was something that we saw

last year. we're going to see that ongoing. what you are seeing in the last 24 hours, we've seen indonesia, india, back stan all come out and lift fuel subsidies that they had in place for many years. the impact of lower oil prices aren't going to be felt in these countries because of the benefit of the lower price is going to be taken away because they're going to put sales taxes, fuel subsidies in place. so the ongoing theme of rise and supply is an ongoing theme for this year. >> you are right in that history shows we don't drive more because of lower gas prices. however, what we know is more people are now shopping for the big suvs and trucks. even if you drive the same number of miles but your car gets fewer miles to the gallon there you'll see the demand. >> well that's right. those countries that aren't your

rush yaess, venezuela, etcetera means the net impact of lower oil prices is potentially a necessary thing for the global economy and i do believe this year we will see it somewhat kept in check just because of that. >> you're a smart guy, matt but i'm going to ask you to put yourself on the spot right now, okay? >> okay. >> be honest with us with this global audience. did you anticipate this level, this steepness of price decline? >> did i predict it or expect it? no i didn't. it's been an incredible time to live through. and i think the next six months will be an extremely volatile thing. but italy, the drop in prices that we've seen is just an incredible thing for the economy. >> appreciate the honesty. i'll tell you what anybody that comes on this program and says they anticipated it i'm calling them out because nobody did. matt thank you very much. >> thanks. up next this morning, new

year new congress. what will the republican wave on capitol hill mean for the markets and your money? the 2015 play book right after the break. plus north korea's kim jong un has a new resolution. >> drop a couple of pounds? >> i don't know. >> meet his people. >> anyway will he keep that resolution? we will talk about that when we come back.

good morning. just to two of us. i'm becky quick along with brian sullivan. joe and andrew are both out today. but we're here we're manning the ship and ready to go. two economic reports kicking off the new year. both of them at 10:00 eastern time. the government issues november construction spending. guess what? the hov very industrial didn't have quite as good a year as it did before. american box office received $10.about approximately down more than 5% from 2013's record high. and dick network is the first company to make "the interview" available to viewers. fios is offering it. it's being played and pushed heavily every time you turn on the tv. >> you saw it? >> no i didn't seize it.

but they're pushing it heavily. >> there's a lot of people out there. you kwies probably did it last week and i know we did it on street signs at 2:00 eastern, this could change the paradox. if this works, this could be this inadvertent block bust move to change the way movies are distributed. >> although i think there is a one off. this is a movie that generated publicity than anyone could have anticipated. i'm going to make sure i go out to the theater and see it or at least download it. it seems to me this is a can't that can't be replicated. >> there's the school of that that maybe this could lead to talks or some form of reconciliation. so let us blow your mind this morning. james franco and seth rogen may inadvertently help north and

south korea renew talkes. >> reunite. >> james franco global ambassador. and the star of that film kim jong-un has new resolutions, getting tot gym more and to talk to south korea. the communist leader paved the way for dialogue with south korea's president christicly saying depending on the mood we have to reason not to hold the highest level talks. let's get your market setup. stock futures indicating what could be a pretty decent day. we're seeing dow futures up 63% versus crude oil. trading higher but still in the mid $65 per barrel range. brent crude, 67.45. the benchmark, 2.6%. mortgage rates should stay low to begin the new year.

the u.s. dollar strength continuing. that was one of the market stories of last year. we're seeing the dollar 1.20 against the euro. and the price of gold is basically unchanged. we'll call it maybe down fractionally 1.5 bucks per ounce. gold down now exactly $2 per owns. and as 20114 draws to a close, cnbc is breaking out the pro book looking at what is ahead in the coming year. this hour is the year in politics. here is john harwood. >> 2015 kicks off a new presidential race making this the beginning of the end for the obama era in washington. you'll see theest in my first predictions of the year. presidential candidates in both parties are going to high jack the issue agenda from the obama white house. sure president obama will give his state of the union address in a few weeks and lay out his plan. but the republican-controlled congress will be more

interesting in the emerging platform of candidates to skeet mr. oh bam in, especially on the economy. hillary rodham clinton will lay out a plan for revival. she tries to convince voters she has something fresh to offer, even though she's likely to be the oldest candidate in the 2016 field. conservative mavericks is rand paul and ted cruz. for the republican establishment, there's jeb bush chris christie, scott walker and john kasich. there's marco rubio. bush would be the party's strongest candidate, but he won't get a chance to prove it until voting starts in 2016. either jeb bush is prepareing for that race. he's been divesting himself of a whole bunch of business investments and ties to organizations that he wants to leave behind for 2515.

the question now is is he ultimately going to take the plunge? and what happens to chris christie and others who could potentially compete with him? >> jan, you're basically saying it's the beginning of the end for the obama presidency. you don't think he's going to call too much of the shots over the next couple of years? >> obviously, we've seen from the last month, there are a lot of shots the president can play as long as he's in office. but when you look at where the energy is going to be and where the skeptdalzation of the next platform, the next set of legislative issues that are coming down the pike that is increase going going to move away from the white house, especially given the fact that this republican-controlled congress is not expected to find so many areas of agreement with the president. although we could see some like on trade deals. >> the trade deals in particular, that's something both sides have held out. is that almost a given that some united states are going to pass?

it seems like that could be conventional wisdom if this is don't get passed. >> i expect them to pass but i think it's going to be a difficult ride getting there. you have considerable anti-trade sentiment within the democratic pauk and some within the republican party. that is why the president hasn't gotten fast tracked so far. their strategy this time is to show people the deal and make people on the hill feel good about the deals. whole see where that takes us and how quickly it takes us because there is going to have to be some debate play out on this. >> john, we're going to speak with chuck gabriel more about

what's happening and what we can expect from congress. but before we do, i want to point out what's on the cover of the "new york times," the daily news and that is remembrance of former governor mario cuomo who passed away yet just hours after his son was sworn in for a second term. this is a man you followed for a long time. >> sure. he was a very coming pelg person in american politics, somebody who was an inelectal, a tremendous speaker. we all remember the year the democrats were beaten soundly in the presidential race. he's somebody who might have made a strong run for the democratic nomination for themselves. for various reasons at different times chot not to do that. this is somebody who served three terms as governor of new york, sometimes under adverse circumstances, but was a very compelling president to the american politics much more so than his son, andrew who took office yet. they pointed him out, saying he was a tie hard liberal. he was forced to constantly go back and try to figure out what you could pay for, what you had

to cut and how you could raise taxes. i wonder if those are more of the same conversations we could expect to have over the next couple of years. >> sure. if you read the terrific obituary to governor cuomo by my colleague, adam nigerney in the "new york times," he talked about mario cuomo saying i regret that i didn't have one big accomplishment the way rockefeller expanded the state university of new york. we'll see what andrew now beginning his second term what becomes his legacy as governor. he's somebody who has had some interest in running for president and maybe after his father stepped away from that threshold, maybe at some point around rue will step forward. but we're going to miss mario cuomo and certainly new york state will as well. >> stick around and let's talk more with chuck gabriel.

check, what do you expect in 2015? >> it is all going to be about 2016. the president will start on defense and he's you know really taken a bold set of strokes and since the elections to try to regain some traction, to put the republicans off kilter, so to speak. we'll sort of fall prey immediately to the schedule. he'll give his state of the union in january and release his budget around groundhog's day. there's a story that suggests he's going to reach out and he understands election ves consequences. he's going to have to deal with a republican congress. he knows he's going to have to go through some tough nomination hearings for his secretary of defense, his attorney general, so he's going to reach out to them on trade and taxes and maybe a highway bill. a time of republicans, that sounds like kim jong un saying

he's going to negotiate with north korea. >> just as plausible, right? >> exactly. but actually if the president knows that he's going to start on defense, what better way to actually gain a little traction than to begin negotiationing with them. then if you wants to as they get tough on the budget -- and that's what we think. we think the budget cycle is going to harden partisan minds and bring to a narrow close this era of this very narrow window of bipartisan comedy. but he may want to put a clintonesque move and seem roent on taxes, trade and infrastructure than if republicans start behaving badly in the budget then you can lunch back to the left again. the last point he made is wonderful. mario como who articulated that progressive message better than anybody in the history of the party did so just before walter mondale wiped out badly.

this party needs to more for 2016. barack obama will lead that or impede that. >> chuck, it's interesting. i think 44% of americans now identify themselves as centrist or political independent. i think people on both sides are kind of getting sick and tired of all the rhetoric from those parties. do you foresee in the next few years a move to the center where things might actually get done? if we go back to the 80s and nients, you look at mario cuomo, some of the hard core rib rals back then might be considered liberalists now. >> on the part of the, the economy is finally beginning to improve a little bit and it is a much more difficult economy. so for young adults today, you know somebody -- if republicans would call come up with somebody like reagan with a really

positive capitalist message, it could really move us more towards the center. in any way, liberal simple has had its problems as we saw in the midterm elections. >> john we were talking earlier about how jeb bushed has steps down is from any of the boards he was sitting on. do you foresee it being another bush or clinton campaign or are there people out there that we haven't thought about? >> lots of pocatellos buckeye, but i think if you look at the field today, the likeliest scenario is a bush versus clinton campaign and i believe that would be a pretty good race for the country. both hillary clinton and jeb bush are solid, experienced, smart, exemplars of their parties' portions right now. jeb bush has been cutting against the grain of the current republican parties on issues

like common core and immigration, but he is a chaurchb conservative gosh governed that way in florida. ask any democrat would went up against him in florida. and hillary clinton would walk into this race with the mantle of her husband's report and i think that would be a good test for the country. i have one question about 2015 because i've got broep broke the last few years predicting bipartisan compromise on issues like immigration. but i want to know if chuck thinks there is any realistic point that we get some sort of corporate tax reform deal in this congress. >> we're a little bit skeptical on that john. i've gone broke, too, by the way. but the door certainly would seen ohm, but as you know well the problems,ite hard to deal with corporate tax reform surgically and not deal with that top rate for individuals, as well.

the approximated has had a real bias which underlies much of the corporate tax structure internationally. it would require a lot of comp miegz on both sides, but it's something that you know you've got some stars now, you've got paul ryan who has taken over house ways and means. you've got a budget process that will allow him to try and move a tax bill through the senate with as few as 51 votes. it's out there. perhaps an easy one might be trade ago you pointed out. the problem is you're going to need at least 70 maybe 80 democrats in the house for a

trade bill. so we're a little skeptical on trade and tax. as for an immigration deal, yeah, we need to reup the highway funding bill, but the funding source is broken. the gas tax doesn't deliver any more. >> guys, i don't know if you saw this because people are celebrating new year and the who holidays, but quietly, japan announced they're cutting their corporate tax rate from 25% to 35%. now, becky, japan is cutting its corporate tax rate. this is going to leave the united states at the highest level for marginal corporate tax rates in the world. by itself. we're number one. chuck, a reaction to that. >> you don't look like joe. no, i agree and i think -- >> i'm a lot taller. >> i think even the obama administration the white house understands corporate corporate rates are in for a redo, so to speak. the top rate for the small businesses are creating jobs.

most of those small businesses file under corporate tax rates. how do you keep the individual rate of 39? >> you don't think we're getting any answers? >> no no don't forget about anything. it's a new year. the president needs to lead the party at the center. he doesn't want his administration to be over. if he wants to do anything he had an has to deal with a republican coming. >> chuck, john, thank you both. we'll see you again soon. on deck, ceos on the hot seat. what corporate leaders could be shown the door this year? and all is quiet on the day after new year's day. thank you. bono may never play guitar again. details on injuries he suffered on a bicycle accident in new york back in november. coming up next. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates.

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welcome back everybody. u2's front man, bono, was in a bike crash in new york's central park back in november. he broke his happened his shoulder, his elbow and suffered injuries to his face. we knew about some of this before, but the details are more grisly than we realized. another person, bono said he woke up in a new york presbyterian hospital with his humerus bone sticking through his leather jacket. bono's surgeon said the surgery to repair the broken arm took five hours and required three mental plates and 18 screws. bono writing, recovery has been more difficult as i thought. as i write this t not clear that i will ever play guitar again. he is in good spirits, though and he jokes neither the band more western viflzation are depending on him to play the guitar. but that still is a little bit of a wake-up call. >> you know what bone that is.

>> i -- >> that's the big one right here. >> shoulder to elbow. >> i'm reading this. stop stop stop. >> sticking through the leather jacket. that's bad. >> yeah. >> that's their best song by the way. anyway coming up this morning, it is only the first trading day of the new year and already we are talking about ceos who are on the hot seat. could we see changes at some of the top companies? names like mcdonald's, coke yahoo! amazon. that's what people are

welcome back, everybody. 2014 turned into a rough year for several high-profile companies. mary thompson tells us which ceos might find themselves on the hot seat. >> these ceos will be closely watched as they work to reinvigorate their companies. costolo failed to hold on to managers. and to gin up new services to attract new users. the investing world will be watching. now, january brings a menu revamp at mcdonald's. as ceo don thompson looks to the biggest market here in the u.s. thompson said an advantage or maybe disadvantage in that investors will be able to quickly see the results of this new strategy.

yahoo! stock up over 128%. in two years up 27% in 2014. but marissa mayer needs to do more after the stake in alibaba. mayer plans to return half to shareholders. and will she be able to revive the firm's business? after a flattish year for the stock, sales, and a weak one for profit, coke lays out a strategy for the low margin bottling business. the question for the ceo is will he execute it fast enough to satisfy investors? last year ginnie rometty had a plan to reinvigorate last year and this year's or 2014's worst performing dow component with the focus on cloud computing mobility and security for corporate clients. again, the speed at which the plan bears fruit and the question will be is it enough. that's likely to hover over big blue.

2014 it was the worst performing dow component. something that hasn't happened since i think in the '50s for it to have the same stock two years in a row. >> we make fun of predictions. she told david faber that's not going to happen. they solidified their balance sheet. but you look at ibm, 400,000 employees. it's so big. >> i think that's a question that a number of people will be asking especially as they watch another ceo who will be closely watched meg whitman when she splits up hp and is this the solution for hp and should ibm follow suit. >> we mentioned in the tease the potential of amazon even. then we started talking about it in the break afterwards. he's the biggest shareholder. >> listen it's always hard to have change in the ceo seat when the ceo is the founder. but i think it'll be interesting to watch amazon in large part because the stock's performance was one of the worst-performing stocks i believe in the s&p 500.

but the stock's performance, does this suggest that wall street is tired of his strategy of low profits, high sales. >> in four years i just looked it up margin has gone down by a couple percent. revenue growth went up. those are not good combinations. >> but again he's the biggest shareholder. >> he's the boss. not tony danza. >> there could be pressure on him one way or the other. >> mary thank you. >> sure. when we come back the sector that ends 2014 on a high note. stick around.

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. the markets ringing in 2015. will it be a tough act to follow after the dow advances for a

sixth straight year? and will crude keep crumbling? the forecasts are straight ahead. move over silicon valley. find out which unlikely places are looking to become the next tech hubs of america. and new rules for 2015. no selfies with tigers. that's right. you heard us right. there is now a law on the books. find out what else is a no-no in the new