it's friday, january 22nd, 2016 and squawk box begins right now. >> live from davos switzerland and the world economic forum, this is squawk box. >> good morning, everyone. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin and it's our final day of coverage. we will be returning to a weather event taking place on the east coast. millions of residents were bracing for a powerful winter storm that could dump more than 2 feet of snow on the region. american airlines is cancelling the bulk of its flights. over 90 flight cancellations along the eastern seaboard so far including all flights out of

washington, baltimore and charlotte and we can expect cancellations at new york's three airports beginning saturday afternoon. we'll have updates on the weather situation throughout the show. >> let's get to the market which is we eluded to because they're up. the u.s. futures are soaring this morning. up more than 200 points and in europe a similar situation. the dow jones up 188. europe better than 2% gains in some markets and overnight in japan, the nikkei surged nearly 6%. i'd like to see 6% in the s&p today added nearly a thousand points. check out the price of oil. this was a move that's not like 1%. 34 cents or something like that. this was an actual move that's got some teeth here. up 5.25 points.

$1.55 and nobody is declaring victory yet and i was joking about we solve problems in davos which believe me i'm joking about that. what actually goes on here. but it's good great parties at night and everything and the elites talk about income inequality and jump on their plane and go back home but if you wait for ka pitcapitulation guarentee you most people will be saying that's not it. we haven't had the wash out. >> wait until you're up. >> no one goes in. it's never clear to anyone. the bell doesn't ring. >> we'll see. >> are you ringing the bell? >> no. >> hear the bell ringing. >> maybe we test these lows. that's what everyone is going to say but there's the possibility. you're always scared because you're thinking there's more and it's never really that simple because there's a wash out. >> so you're with the -- they

have convinced you. it's going lower. >> i know. >> look at this ridiculous out fit. >> let's get you through headlines. we're going to get to him in a moment. starbucks first quarter profits heeding forecasts on strong sales of christmas gift cards and merchandise. rising 8% topping estimates but growth was slower than expected in china, europe and the asia pacific region. also disappointing investors. shares falling 4% in after hours and coming up later today an exclusive interview with chairman and ceo howard schultz on squawk on the street. that will happen at 9:40 a.m. eastern time. also credit card financial news, american express fourth quarter profit falling 38%. that excludes certain items. results beat forecasts. now here's the bad news. the 2016 outlook is below analyst estimates. company planning to cut $1 billion in costs by the end of

2017. that's of course an acknowledgment that it's efforts to boost revenue so far and have yet to pay off. >> boeing will be cutting production in half because of slowing demand. it will take a charge in the fourth quarter. it's mostly used as a cargo jet but it will also be part of an upgrade to the air force one presidential fleet but this is something they noticed at the end of last year. there was a significant slow down in that air cargo market that had been recovering since 20 13. >> i like that air force one. six people are going to hawaii. we have the paris thing so we're all set. but six people on air force one. headed to hawaii. a carbon footprint the size of davos. >> it's funny on the last day of joe's day. >> i'm still going to be nice.

did you see with john kerry last time. i just said we solved all the problems here andrew. you lead the panels. you probably lead the panels that solved the problems, didn't you. >> we're trying to solve problems. problem solvers. >> reuters is reporting that yahoo! will decide on the next strategic steps only after releasing fourth quarter earnings on february 2nd. sources say they spurned several potential buyers this month including private equity firms. last month yahoo! said it would seek a tax free spin off that could take at least a year. that stock up by about 2%. >> we have been talking about closing out a wild week of trading on wall street and around the world. our next guest says that we shouldn't hang on every tick coming out of shanghai. gary joins us now. he is vice chairman. the leading restructuring firm

in the world and with every crisis there's an opportunity and i bet you there's stuff in the oil patch going on that's interesting. >> you're exactly right. i was going to say all the negative talk in davos and there is one of the sectors that does have problems is commodities. the whole commodities complex inlei including oil. and we're still in the early stages. >> has it been in your view a supply or a demand issue across the board. >> yes. >> the answer is yes. it is and there's an interesting dilemma. they have a lot of debt and at the time to service and they need to keep pumping oil to service that debt as long as you can. >> exactly so there's still that dilemma. they have a lot of exposure to

oil industry. >> you would identify what type of companies. we're going to do this or to this with your debt. >> two categories. one is in the oil and other commodity industries. there will need to be a rationalize and some companies need to restructure their debt. that will happen in the next 12 to 18 months. in a number of other industries the low growth taking place means for any company trying to grow the top line it used to be five years ago you would wruz at the merging markets as a place to grow and now they're not growing. so about the only way to grow earnings is to merge and cut costs. that still is a catalyst to merger activity and consolidation. >> when does that change? >> i don't know. as to when will the world grow

faster i don't see it for the foreseeable future. >> why are you -- you seem to be mildly optimistic. >> i'm more optimistic. i'll tell you, it's interesting. in davos there's a lot of talk about the negatives but the bulk of the world is relatively stable. not high fwroegrowth but that'sa terrible thing just to have stable and even in china people saying whether it's 5 or 6% growth. the second largest economy in the world growing at that rate. it's going to be choppy and it will be volatile but fundamentally a longer term view, i'm not a good day trader at all. i wouldn't know but i'm more optimistic about that level of growth and what it means for the world. >> your thing is explaining or predicting moves in the equity markets obviously but what do you think we have been witnessing? what's the underlying route cause? uncertainty? >> three things come to my mind and all begin with c so it makes it simple for me. but commodities and they are

dislocation in the world. currencies and i know joe you have been on this about the u.s. fed and their activities but it's a global issue as to how the central banks are trying to manage their economies by managing their currencies. currency volatility is become a problem. and the third issue is china. so the change taking place in china and the lack of transparency. so those three, you take those and you do get a lot of confusion, uncertainty and volatility but that to me is market volatility as opposed to the still the underlying -- there's a lot of stability in a lot of places. >> when you worry about it, it's not what's happening. >> in merger activity that's what we see. they're managing toward low growth and what you do on a low growth environment. that does lead to some amount of consolidation.

and it becomes very domestic country by country. because global is a risky proposition. >> you represented some of the biggest banks in the united states for a long time. is there any opportunity for anybody to do any additional consolidation in the u.s. in the banking business or have regulators effectively said no? >> they have moved from three or four years ago. they did not want to have consolidati consolidation. now there's mid sized transactions. by that i mean $5 billion. if it's logical. if it's conservatively capitalized and add good management team. >> you covered the financial guys for a long time. do you have a view of what's going on at that company and what happens there. >> no.

i'll decline on a particular company. >> i think you said that what the central bankers around the world have done is a right thing which annoys me. >> yes if you have low growth. >> the banking system of europe is still way weak. one way is to keep moving currency liquidity and creating liquidity and helping the banking system to try to hold up the economy and the currency may move one way or the other but it's unchartered waters. >> i hope to live a long time. >> most people are managing toward assumption that rates will remain low on a global basis for the foreseeable future. whether they're right or wrong but a lot of companies are

managing that way and causes major changes. particularly for banks. pension funds, pension liabilities. there's big issues floating around. >> pensions are looking for 8% returns if they'll be able to pay out. >> that's the second order of consequence. a lot of companies with pension plans with a problem and or local governments in the u.s. but if you look on a global basis that's the real problem you always supported the beard. >> do you feel vindicated now. >> 30 years. joe the trigger is going to come to save it. maybe you just told me. the bell is ringing. >> it must be. >> you come over here and people go oh no they ask you for directions. >> not made that mistake yet. >> no, nobody thinks i'm a

local. >> well, not in that coat. >> hey, you know, i do what i'm told. thank you. >> nice to be here. >> thank you gary. >> folks two of the most powerful women in the corporate world are here in davos. gm ceo mary barra and sheyrl sandberg. i got a chance to catch up with them as part of the collaboration with facebook. it features conversation of a wide range of influential thinkers that might not otherwise share the same stage. >> we're optimists about technology. technology has come with challenges but improved lives and life styles and health and education for billions of people around the world and we think that trajectory will continue. >> what do you say to someone like elon musk worried about what could happen with ai down the road if machines take over at some point.

do we ever worry about that? >> every new technology comes with challenging. one of my favorite stories is in the u.k. they passed a law saying in order to operate a motor vehicle you needed two people. one behind the wheel and one walking in front of the car with a red flag. >> i never heard that. >> there's another one, in california when caller i.d. came out they tried to pass a law prohibiting it on the grounds of privacy. they thought it was a violation of the caller's privacy that you would know his or her number. now either one of you take a call when there's no caller i.d. because if they don't want you to know, they know you don't want to talk to them and that's why they're not showing their number. so of course cars have problems, caller i.d. has problems. every technology has problems. they all come with challenges but it's up to us to manage those challenges so that progress can continue. >> i absolutely agree. there's so many things that technology can help people with

and the good, we have to continue to solve the problems. >> how long until we actually see an autonomous car that i can get into and read my newspaper. >> my son is 10. he gets his driver's license at 16. that's my time line. >> well, i still believe he should learn to drive. >> i'm not sure. >> we'll talk later. >> how is the driverless car coming. >> it's coming but when it's going to be pervasive. that's a while off. i do believe quicker than we think and probably within your frame work. there will be places. >> thank god. good news. >> there will be places whether a city or specific route or certain areas that will have autonomous vehicles money. we'll have them in the tech center by the end of the year. >> one question for you, lower oil prices all over the place

changes consumer behavior, changes what people want. how are you dealing with that? because it's hard to make long-term plans. >> well, we're not changing our long-term plans at all. we're committed to meeting all the fuel economy and co2 requirements around the world but more importantly giving customers choices. that's why we were so excited to launch the chevrolet bolt. when you look at 200 miles range and affordable price you change the equation. people who had it as their second, third, fourth car now depending on their use case can start to consider it being their only vehicle. so that's just one area but we're not changing our plans at all because we think it so important to need to drive the fuel cells, continued improvements tht internal combustion engine. >> you can visit our facebook page to learn more about our series because there's several of them but they're all very interesting. check it out. >> we're just getting started

here in davos. next up, changing the health care landscape. the ceo bernard tyson joins us right after the break. and in the d.c.-baltimore area, nasty weather. how much snow can the east coast expect? remember last year? >> we can only hope. >> we'll have an update when squawk box returns. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. weyoung company around but if we want to keep the soda pop flowing we need fresh ideas! >>got it. we slow, we die. >>what about cashing out?

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>> best day we have had. >> weather wise. >> and market wise. >> it's all ahead of this. welcome back to squawk box. we'll be leading davos soon but we'll be going home to nasty weather. not like here. beautiful and it's mild today. you don't see the gloves. a little bit of -- >> you can still see the breath. >> but that's a great backdrop. >> i am going to throw something out. >> i don't want to litter. >> don't. i did that for you yesterday. >> i'm very selfish. i need to hear this. that is very important. >> we know that.

let's get to jen in atlantic city. that's getting close to where it's really going to be happening there tomorrow morning. >> it is. we're expecting big time winds as high as 60 miles per hour. we're talking tropical storm strength in terms of wind effecting the area. the coastline here in jersey is like that you might see with a tropical storm except we won't see a land fall. the storm will go out to sea. it's a coastal low and it batters our coastline. we saw hurricane joaquin in october. what it did here in the jersey shore was really certainly carve out some of the dunes. we see the concern that there's

three high tide circles. especially down the coast in jersey toward cape may they could see one of the top three tide numbers and that could cause coastal flooding and issue on the shoreline. they have been making sure that the entry ways, those are protected as well from the water. the scene behind me is calm. it was flat yesterday when i got here. now we've got maybe one or two footers. sunrise is happening behind me as we speak and as the wind turns around on shore we're going to see the waves start to pick up so by overnight tonight and tomorrow joe we could see waves up over 15 to 16 feet. winds 60 miles per hour and that's going to cause the coastal issues. back to you guys in davos. >> jen don't go yet. i need to ask you about the

airports because we need to get home. what's it going to look like? >> if you're going to atlanta city you might not actually, you're not getting into atlantic city, you'll probably fly back to jfk and that's going to be tough as well. a lot of cancellations and preemptive cancellations. the d.c. area and philadelphia area impacted by the big snow t. wind at the other airports regardless of 6 inches or snow or a foot is going to be an issue for flights. >> okay. >> thank you. i was going to ask you if you're going to a casino tonight or something. but are there any casinos left. the delay is too much. but she's working. are there any? >> there's still casinos there. >> not as many. >> darker lights along the boardwalk there. >> the health care landscape is evolving. looking to reshape how positi s

physicians are educated. they'll launch a school of its own where they'll focus on the new technology in primary care. joining us is bernard tyson. the chairman and ceo. it's great to see you. >> great to see you. >> let's start first talking about this medical school. it's not the first of its kind but it's very important. we heard a lot lately about how we may run out of physicians down the road in the united states. is that what prompted this? >> not totally. i mean, really we're motivated -- by the way, you're welcome to come to california. i think there are flights going to california. >> i'd be happy to do that. >> hopefully i'll be on one in the morning. >> we feel strongly that we're in a unique role to think about health and health care in the 21st century so we have done enough now taking care of now almost 11 million people to understand what is working with

human touch and having strategies because of technology. how do you work in an environment where they play a critical role in leading and working and orchestrating how a person should be cared for. allows us to monitor people away from the historical construct of the industry where everybody comes directly into the sight for care and for needs being met and the ability to go upstream and hopefully prevenn things from happening earlier on, so all of these things now we believe should be braug together in a medical school environment to complicate the education system now but be very focused. we are concerned that we live in a diverse society and want more

diversity in the medical practice so there's also a commitment to figure out how to make sure that we are educating people from all walks of life and that they have a chance to be a part of the medical educational system. >> >> is it still as bleak as it did 15 or 20 years down the road as to whether or not americans would have access to physicians if there are enough of them? >> yeah, it's changing. there's areas where we continue to have major challenges because of greater demands. primary care is a big one. so everyone is looking at how do we continue to recruit and retain physicians in a primary and specialty care. how do we start? this is back to the 21st century. and how do they best utilize and leverage the uniqueness of what

a physician really brings to the table and how do they begin to move away from unnecessary things that in today's world the physician might be doing that someone else can effectively carry that out. >> can i ask you about drugs and drug prices. we have seen a number of big drug company mergers and biotech company stock prices come down and a lot of debate about trying to cap prices. hillary clinton has come out and talked about that. where do you come out on what we should do about drug pricing right now? >> drug problem proois as good a big problem and concern where i know i condition rationalize why we're paying so much for the drugs to give to our members. i believe what's being promoted which is it should be a free market. so free market means that the regulations do not protect. they create a level playing field for us to negotiate drug prices in a more --

>> but you don't think it's a free market right now. >> no. >> because. >> because some of the drugs are priced and protected by the government is my view because the government is in some cases has its hands tied on whether or not they can negotiation. >> medicare. >> and also related to that is when the prices are established, with the government, therefore it becomes the ceiling, if you will, and so i can't go in and negotiate a lower price because then they'll have to give that price to the government and everyone else. >> you hear the g word again and again and again. and you already made the point that if you can go upstream and prevent things from happening or not have a hospital stay or not have a physician or some type of surgery it's a much better, in terms of cost containment. that's what they do for you. you don't want to cap innovation. >> i was going right there.

i don't want to sit here and come across like i'm mad with the pharmaceutical industry. i have a problem with the pricing but i don't want to throw out the baby with the bath water. >> the deal that the administration made with the drug companies to get this done was the medicare thing that you're talking about. so they screwed themselves. >> we're living right now with great examples where in my lifetime i'm a part of hepatitis c being cured as opposed to managed. i don't want to throw out the baby with the bath water. that's a big deal. >> and maybe more things like that hopefully down the road for all of these chronic diseases which will be much cheaper. we have to be careful who we demonize. >> great work shaping. now we have to figure out how we bring it all together because in the center of my agenda is affordability and that's what i'm after while we continue to improve quality and service. >> bernard, thank you.

>> thank you. great being here. >> that's the big case. >> the biotechs have come down because of martin. these are real issues. coming up waiting for the results from general electric. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep it all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberry apple scones smell about done. ahh, you're good. i like to bake. get expert advice for your small business at att.com/small business.

welcome back. general electric reporting moments ago interested to see where the stock is trading because the bottom line was 52 cents which was a gain of 27% which beat the estimate of 49

cents. however, the revenue was 33.8 billion. it was up 1% and that is below estimates. i believe that we're above 35. almost 36 billion was the estimate. it was driven by higher impacts of foreign exchange. obviously the strong dollar. shipments were pushed into 2016 and didn't happen in 2015 primarily in renewables. orders up 1% annually. up 80 basis points for the first quarter of the alstom deal. and ge capital $157 billion worth of deals and the guidance is reaffirmed for the year. >> you might think that it would improve the guidance at least on

a revenue out tps look. >> for next year. >> it's not down 39 cents. is that what i'm seeing? >> that's right. it's only down about 1.3%. >> yeah but not just with general electric but revenue growth's a chronic issue for a lot of industry companies. well we're shrinking ge capital but revenue is always sort of the issue. >> the currency exchange has been a huge issue for every multinational. >> before that. we executed well in a slow growth environment and accomplished all the goals in 2015 we outlined for investors and we recognize that the first few weeks of 2016 have been especially volatile. >> right. >> so you're hearing that as well. >> the rockerfeller foundation announcing here at davos that it's launching a huge program. $130 million initiative to reduce food waste from around the world.

this is just one of the global challenges that the foundation is trying to take on right now and as i just mentioned she is the president of the rocker f l rockerfeller foundation. >> imagine if you were the ceo and one of your managers said to you we lost a third of what we manufactured this year somewhere. you wouldn't tolerate that. that person would be looking for a job but that is the state of affairs of our global food supply and we have tolerated it for a long time. it is a trillion dollar cost. so last year the amount of food waste and loss caused more than a trillion dollars of loss which is the combined profits of the fortune 500 in 2015. >> so how did you identify this problem and the free market, dare i say, not figure this out a long time ago? >> well, corporates considered it part of the cost of doing

business. if you're a large sourcer it just gets priced into the consumer so we're all paying for it. that's one reason that it never got really addressed earlier and also poverty was not sort of the major issue and now everybody is saying 1.2 billion people in the world who are food insecure, if you reduce the third of food waste and spoilage 40% in the developed world in the industrialized countries between retail and garbage can then you could feed every hungry person in the world. so we said it's low hanging fruit. pushing against an open door here. >> yeah. it's one thing to be able to be the factory manager and say here's how we're going to fix it. it's a lot tougher when looking at individuals because you need to get into my house and help me figure out how to cut down the waste in my kitchen. >> definitely. that is what we're going to do.

a we're going to make consumers smarter and b make it profitable for retailers to sell produce they would have thrown away. so for example the canadian food company is discounting by 30%. ugly produce that normally they would throw away so the consumer gets a product at a lower cost and they increase their profitability. >> how do you train people to buy ugly food. >> lots of celebrity chefs are now. he's starting a huge initiative. we are aramark working on college campuses. they are on so many of the colleges and universities supplying food. they actually have competition on recycling and waste they produce. 16 million pounds of waste on college campuses. so those kind of things in developed world.

developing world is actually intervening. so lower cost technology is restored. and all kinds of companies more locally and then working with the multinational sources and coca-co coca-cola. and nigeria and making that link which the farmers never had access to is part of our role and why we're excited about this. >> i think of you as an optimist because the last day you talk to everybody out here. but all the smaller sessions are extremely optimistic about the public private collaborations

going on to solve big problems. >> make sure that 5%, you can wake up and do 5%. >> you can totally wake up and do 20%. >> 20% and that would be half of the people. this is such a great -- look at all the other stuff we think we're solving and when you can do something like this, when really, people are basically hungry and you look at dumpsters it's full of stuff that can be eaten. >> that's what we think joe. it's so amazing. a tech company we're supporting created an app for restaurants so that homeless shelters and other entities right in that city can go to the restaurant now and pick up what is thrown away. >> never run out. you can always get what you want but that means for some reason they're always throwing stuff away. you have to find a balance between making sure you satisfy everybody that wants it. it's hard. >> exactly. >> technology. >> this is really ready. >> thank you. >> thanks for being here. >> all right. coming up, getting the world

connected with cable. they are taking on the task with a string of international deals and mike fries tells us what his company wants to conquer next. squawk box will return in just a moment. technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients:

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i'm hacking your company. grabbing your data. stealing your customers' secrets. there's an army of us. relentlessly unpicking your patchwork of security. think you'll spot us? ♪ you haven't so far. the next wave of the internet requires the next wave of security. we're ready. are you? international cable giant liberty global expanding it's reach further into europe. expected to get approval on a $1.4 billion acquisition in belgium. liberty global has grown through a string of international deals. that's what andrew is always interested in but organic is interesting to talk about too. the ceo of liberty global joins us now with more.

mike, good morning. >> how are you guys. >> great. >> have you ever seen comcast and xfinity. you know what we can get in the united states. >> of course. >> how does that compare. >> we're doing the exact same thing. it actually uses the same software platform so our customers get tv on their mobile phones or tv on their ipads. we learned our lesson from netflix. we made that user experience incredible and now you have all the content you could ever want on that kind of user experience. >> are you old enough now where -- you'll always be doing this other stuff but organically that's where you think the real growth. >> we reach over 50 million homes with our networks and we see accelerating growth in the next three years. the acquisition in belgium is a

good example of that. we're more tactical but building another 5 to 6 million homes in the next three years just in our existing footprint. there's 12 million unbuilt today. so we have organic growth in terms of extending our network. >> you mention netflix. what is the impact of that to your business. >> not material. i think the strategy there for about as much as anything is blanket the world and maybe get 5% penetration everywhere. that's a big business. they're struggling in many markets because europeans have european taste and they want to watch their particular sports or particular news. so our strategy is in some cases we carry netflixs and put it on the box in the u.k. >> why that where most americans are. >> we're not as threatened. i think in the end netflix will be like an hbo. a great program provider and program producer that wants to be on the platform and available

on all devices and all systems. >> let's go back to the mobile systems. the wireless systems in europe. the complaint is the technology has not kept up. u.s. is already going to 5-g. that's not something that europe has the ability to get to that quickly. therest not been enough poured into the system. a lot of people blame the eu laws of not being able to put together enough of the broadband and the spectrum to make it worth your while. >> you have it right. it's been a very fragmented market. too many operators however that's changing. 5 go to 4, 4 go to 3 and benefit to consumers is more investment in networks and you're seeing this mixed mobile convergence. we offer a quad play product in every country. think about that and for us mobile is a great revenue growth stream. >> andrew, do you not love that. i think that's malone's idea.

it becomes part of the thick bundle. not some skinny bundle. >> the u.s. all we do is talk about the conversation about unbundling and what's going to happen and the skinny bundle and the idea of just everything going ott. >> a lot of that is price, right. in europe we're a fast bundle on a skinny price. >> but the price is going to ultimately have to come down. how much cheaper is cable. >> a third. >> it's a third. >> and the reason why it's a third, sir, is there's competition, am i right? >> partially but we also don't pay as much for content. so we have more margin to work with to provide -- >> is the content reflective of that. >> 300 channels of digital television. >> why are you paying so little for content relative to the american players. >> it's a fragmented market. nobody dominates europe. every broadcaster has their content there's different channels in every market and we

have scale and there's the balance of powers is better. >> you know, judith is still in there watching. the comcast board member. >> yeah, your skinny bundle, over the top. >> i'm not -- i'm on the payroll but i'm trying to be okbjective about this. you may not be. >> have you turned on the tvs here. >> watching you guys. >> and then the other was cnn. >> we have to go. mike, thank you. ♪ there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all.

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welcome back to "squawk box." we're live in davos, switzerland. a company at the intersection of big data and realtime information, data monitoring is in partnership with twitwitter, tweets too actual alerts. ted bailey is with us, back on the other side of the ocean. >> a little less snow. >> one of the things you do, or the thing you do is mine data from twitter. i was looking at twitter in the commercial break, but you look for different tweets and pieces of social media to alert investors what's going on. three days, day three here, is there anything you alerted

people about before people appreciated significance? >> believe it or not, a yos you looked at twitter to see feedback on the interview, you know, twitter is a global sensor network. out here, the alps of switzerland, people, in fact, are tweeting about this conference, and data miner, in fact, was able to find actionable information, for example, as you probably know, there were some recent cases of ebola that were confirmed, and merck announced they were giving its new antedote for free, so that was tweeted first, released, and it was a good example of, essentially, you know, twitter following the news even out here. >> you know, people were -- straight to conference, and then people see it, and --

>> how dependent are you on getting the right information? there's got to be a lot of misinformation on twitter. i see it every day. >> yeah, i mean, the key to twitter is, you know, to be able to ascertain not only the breaking, but that it's, you know, actionable, and relevant, but there's -- >> is there a human being looking at that, and -- >> we specialize in the patterns, so, you know, as you can imagine, someone -- when something happens, for example, a tragedy in paris, a bunch of people notice that in a tweet. that pattern in a time series is detectab detectable. we can spot, contextualize, get the elements, and give the right information to the right client at the right time. >> any anxiety people cut back on social media? people talk about cutbacks, and, look, twitter as not grown as much as it wanted to.

>> yeah, i mean, i think twitter is one. most significant companies. i think that, you know, essentially, you have a company that's revolutionized realtime communications, something that's connected the world and created a new sensor network out there experiencing everything. the eyes and ears of the world, and i think that social media is only in the second inning. so i think, you know, i may be biassed, but i think, essentially, we're in the beginning of, you know, the revolution that social media's bringing about. >> figure out how to get the economics to the people who tweet. you make money from their tweets. thank you for coming in. >> absolutely. >> thanks. >> thank you. when we come back, the global markets surging this morning. larry fink is on talking with us about the wild swings that investors dealt with since the start of the year, and, plus, battling isis, keeping the world safe, secretary of defense, ash carter, our special guest at

7:45 eastern time. "squawk box" returns live in a few minutes.

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welcome back to "squawk box" here on cnbc. magnificence, isn't it, what god has brought? unbelievable. first in business worldwide. i'm joe with becky and andrew.

>> loud and proud. >> east coast braces for a winter storm. travel tough over the weekend. already, thousands of flights have been cancelled. i just got a push notification on a swiss air flight tomorrow night i booked just in case cancelled at 5:00 to leave zurich. a full report in a minute. markets look to open higher today, a nice relief after the week that we've had, not that we're that long or short minded here. we just cover things, but it's dicey at times, up 191 on the dow, 25 on the s&p, and a lot of this has to do with a snapback in oil. we have not seen a move like this recently, up above 5%, over $31. $31 suddenly looks a lot healthier than $26. it's been higher as the cold snap boosted demand slightly. the ten-year moved back above 2% now, almost 2.07%.

and then the european and asian markets all did pretty well today, so we'll see whether the u.s. is able to hang on to the gains and extend them through the session. >> okay. headlines this morning. here's what's happening. watching shares of ge, general electric, company beat estimates by 3 cents with adjusted quarterly profit 52 cents a share. revenue short estimates due to delays in orders in 2015 rolling into 2016. two economic reports today. both at 10:00 a.m. eastern time. we'll get the conference board's index of leading economic indicators as well as adjusting home sales from a national association of realtors, and, also, we have to tell you, a national labor relations judge says walmart unlawfully retaliates against workers who participated in strikes against the retailer in 2013. walmart now has to offer reinstatements to the 16 fired workers. joe? >> andrew, it's our final day in

davos. a great lineup this morning, including the u.s. secretary of defense, ash carter, later in the hour, president of microstatement of fact international, and i'm going to give this a shot, jean-philppe courtois. >> you did well, sir. >> i think so too. this is rubbing off on me. the nyse group president tom farley on market volatility and global markets. a big two hours to come after what's been a week where -- is this the fifth cabinet member that we've had on? >> fourth. >> fourth. >> we had penny, jack lew. we're at four. >> right. how many major banks have we had? almost all, right? jp morgan, bank of america,

citi, morgan stanley, goldman sachs, ubs. >> all ceos. >> it's been the perfect week, this backdrop, china's major slow down, all of that sending investors, hedge funds included to the sidelines to wait out volatility. joining us now with his global market outlook is scott, the chief investment manager, and, scot, different morning from a couple days ago. look, green arrows this morning. we're not out of the woods at this point? >> i don't think so, becky. the question is, you know, is this just the dead cat bounce, and are we going to get another leg down? i think the overhang of issues we talked without two days ago, you know, whether it was china, you know, the continued supply and balance in oil. that's all still in place, and, you know, while i'm honored to get included with being quoted alongside george this week, i do want to be careful of the this

is not the end of the world, right? if we go back to where i think the s&p's going to go, which is 1650-1700, that's a 10% additional bounce from here. when you look further out on the horizon, you look at where we are, especially in asset categories like bank loans, high yield, this is a very interesting time for people to be putting money to work, and so this is not 2008 or 2009. >> when you say interesting time to put money to work, what's that mean? if you have an interesting haircut, it's not a goo thing. >> chinese curse. we live in interesting times. >> right. >> you know, i think that when you start to look at some of the things that are out there right now that are trading at prices, you know, 50 cents on the dollar, that our credit works, is money good. think of the 12% return on fixed income, it's probably a good time to be putting money to

work. if you think we're not coming into 2009. >> just to go back to the 10% issue, which is, if you're sitting on cash right now, and you believe what you were saying, i think, on wednesday, and what ray dalio said, risk to the downside, you wouldn't be waiting? it depends what the horizon is, but, by the way, look out beyond 12 months, if you can. >> sure. >> do you see a catalyst that then turns positive? >> look, i think so. i think the -- the policymakers, i mean, part of this rally we're getting is based on what mario draghi said. >> bad news is good news, and at some appointment, it's a bad became. >> it is. horizon of 12-24 months, you know, flooding the system again with liquidity, i know joe's in favor of another round of qe. >> couple. >> all the liquidity, even if we don't drive interest rates down, it sloshes around in the world finding homes lifting risk assets. >> virtuous, just another year

of this, right? sooner or later we need fundamentals, but that's what people act on right now, back up to wanting additional easing, i think. >> well, and every central banker around the world is basically offering it up. mario draghi offered it up, and i think it's only a matter of time until janet yellen offers it up, so, you know, liquidity trade worked for the last five or six years, and i think it will work again, but, you know, as joe says, this will eventually run out of steam, but i think that, again, given where risk premiums are today, it's time to start looking around at things and looking for opportunities. >> but not necessarily equities? >> that would not be my first stop. there's a lot better values in the world than domestic u.s. stocks. you know, i think if we -- i personally believe we're going to get the brazilian etf ewz below $10. below ten bucks in brazil on the

etf, i would be a buyer. >> wow. just in terms of what we hear next, the next sort of catalyst, there's a fed meeting next week, and you have to wonder how dovish they will be coming out of the statement given what the ecb said. >> i think they are, you know, they have this paragraph in there, and i refer to it with -- when i was with president dudley last week, i said it's the kitchen sink paragraph. it says, and, by the way, if we decide to change monetary policy for any reason, we can look at any condition. that's basically what the paragraph says, an i think they feel that kitchen sink paragraph is designed to give hemthem a l of optionalty, and as i said on the last time i was on, i don't see the fed raising rates in march, and i think the probability of a return to zero is dramatically increased, but not calling that until the second quarter. >> scott, thanks for being here. >> thank you.

coming up, when we return, a wild week in the market, larry fink is next, and he has a take on what to make of the volatility. oil prices, draghi's comments yesterday, and futures at this hour. look at what's going on here. you see the dow up 177 points. "squawk box" returns in a moment. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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our next guest is the world's largest money manager, and last time we spoke to him, he said investors should be bracing themselves for more blood in the streets. larry fink joining us now, chairman and ceo of blackrock. we almost got 10%, not quite. >> about 6. >> we got about 6. >> yeah. >> do we need another four? i question whether we do. >> you know, i think china's been acting a little more sensibly. they have been more rational, consistent, and that's certainly stabilized the market, but i will tell you, in our flows, the first few weeks, we saw some very large financial institutions selling. this week, we saw buyers starting on wednesday. >> right. >> big institutional buyers? >> yeah. >> that was the bell? >> that was last week.

>> 10% more, people don't know -- what day was that? >> friday morning. >> on friday. we got about six more. >> six more. but, you know, the markets are recalibrating. more bullish today. the mood in davos was negative, and last year, it was so wonderfully nice, and, so, you know, i come here to find out what consensus is more than learning anything that's really riveting. >> exactly. >> but, no, i -- look, i do believe, and i'll say it again, i believe the markets are higher by year end. i said that last friday. i believe there is a need for blood in the streets. we need to -- we need to work out all the access inventories in energy, and the only way that happens is through bankruptcies, some of the oil companies, they stop pumping, and so, you know, this is all good. this is a good process. actually, this market correction weeds out the weak. as i said, we didn't see much

major change from what we call long term client flows, and so i think these processes are healthy, and we need these. you can't have a market that continues to go up. you need corrections. you need to create, really find out what is a true foundation of a market, and we're testing that. >> can i just ask that you just use the phrase "blood on the streets" again, more pain from here? >> in some sectors more pain, sure. it's not over yet. we have not found the bottom in oil prices yet. we still are learning more and more supplies everywhere in the worlds. you have iran coming on board. you have better technology that is advancing exploration faster, and, demand is growing. one thing to be aware of, demand is growing 2.5% for energier ye prices. >> iran's on board, and john kerry said iran will not bring

as much on board. >> half million barrels a day. >> from infrastructure not being ready. >> but they need to investment that's over $100 billion a year to get the potential going again, and they have, so i think they are receiving $85, somebody told me $40 billion net, i don't know. they won't have enough to reinvest. they have so many other social needs to do. >> they owe money. kerry said that as well, somewhere around 50, i think. >> back to the equity issue. >> yes. >> scott said he would not be buying equities first. meaning there's other things out there in other places he thinks are more interesting. we talked about brazil, etf in brazil, and there's other more interesting opportunities. are there places you think are more unique? >> my view of mexico, consistent now, especially mexico now with the peso at its devaluing to a point where i think mexico investment is good. i actually like canada. i mean, our great northern neighbor. i, you know -- where the

canadian dollar is overshot itself. brazil, that's harder step. i think it needs to be another 20%, a 25%. it was 1.1 in 2011, and now it's four. it has to go another 4.4 in order to stalize, but there are parts in brazil doing well now. all agricultural sectors are selling, everything in dollars, if you're a producer, dollars, it's good. but, no. i would -- for the -- where most people who are not able to speculate brazil, stay invested in equities. be there in equities. these are just market corrections. as warren buffet says, it's a long, long race, and i think that too many people are panicking over these corrections that are necessary, and the

reality is, over a long cycle, you do fine. >> we tripped the low. it was 666 on the s&p. is that seven years ago or eight? >> it was march hadth, dwayne. >> so triple, more than triple from 666, and now we go in the correction, which you think is huffy. you don't get your 4%. maybe you do, maybe you don't. i mean, with the 6 that you said, so what i'm saying is it's so hard to go at the exact bottom, and a lot of times, up 10% before you say, you know, you should have bought. >> use market defiance to accumulate. i don't know where the bottom is. >> six might be enough. >> well, i don't think there's still enough carnage. >> lows not seen in oil. you have not seen the lows have been seen in s&p. >> they may not have been. >> what about the s&p? maybe? maybe not? who knows. >> corporate earnings are better than people feared. you know, everything's on the margins, and corporate earnings are better than they fear. china's acting more rationally

than you feared. >> you said your climates felt better. did you say that?buying, right? >> some bought this week, yeah. >> this week. >> yeah. >> what about draghi? >> what he said was great. he's basically -- >> printing more money. >> he said with his inflation rate and the issues around his economy, he has more ammunition, and he's going to use it. >> but that's bad news, ultimately. >> if you believe printing money -- if -- so, i have not heard you talk about qe 3 and h, was that bad? >> we have had that debate. >> okay. one thing, i think i said it. what i'm worried about, and i told this to many central bankers, i worry about -- we spend so much time worrying about retiemprement and savers. i worry the low rates are the cause of the market slowdown.

the average saver just doesn't have enough money in retirement. put in terms of annuity at 5%. put x dollars away to get to the nest egg. annuity at 2.5%, you need double. low rates force savers to save more, not to consume. what question asked last friday, could it be that the market is upsetled because we recognize countries in trouble because of the lower commodity in oil prices? we identify which companies are in trouble because of their debt coverage ratios with the lower energy prices. what we can't understand is a $4 billion human beings who are going to, you know, have more savings because of lower energy and heating, however, that's been happening now for a year, and we have not seen worldwide that incremental savings going into incremental consumption as

much as we all thought. some of my conversations with a couple central bankers, i asked, you are enjoying huge savings now because of you import all your energy. your economy's up a little bit. i thought it would be up a lot more. why aren't you seeing that consumption? no one has an answer yet. >> low rates beget low rates because low rates keeps consumers from spending less, and in turn -- >> i have that view, and most economists say i'm wrong. i'm not, you know, i don't want -- >> oh, geez, change your view then. >> well, i do believe that because we're in that for more and more of the savers. i have to save more because i don't have enough for the nest egg. >> what economist is managing $60 gabillion dollars? none, just you, larry legend. don't listen to them. they know nothing. >> but we need to really ask

ourselves about the narrative. that's a really important question, and we don't have the answer. >> right. okay. thank you, larry. >> enjoy the beautiful weather. >> beautiful day, it is. millions in the path of a major winter storm, an update on where the snowfall will be, where it's heaviest, and what it means for your business travel straight ahead. later, defense secretary ash carter will join us to talk isis and north korea and iran. wow. just getting in a good mood. when we return, all that stuff. lots to talk about, "squawk box" will be right back. time now for today's "aflac trivia question," what is the oldest stock exchange in the united states? the answer when cnbc's "squawk box" continues. ohh ah ah aflac! aaaaf-lac!

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now the answer to today's aflac trivia question. what is the oldest stock exchange in the united states? the answer? the philadelphia stock exchange. coming up, defense secretary ash carter's going to join us, and talking with bono and bill gates. they don't share the same stage professionally, they have a common goal. see what it is in a bit, and my

sit down interview with sir richard branson, talking startups to oil prices to the space race. his comments straight ahead as we head to a break, take a look at u.s. equity futures. back in a moment. it's hard to find time to keep up on my shows.

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markets opening higher this morning, earnings in focus. in the fight against terror both here, i mean, in the united states even though we're in davos, and abroad, where we are, confusing. u.s. defense secretary ash carter joining us. bracing for a major winter storm, 80 million people will be affected. thousands of flights already cancelled. update minutes away. you're watching cnbc both here in davos and worldwide. this is "squawk box" on

cnbc, with joe, becky, and andrew. welcome back to "squawk box" right here in davos, switzerland, and among the stori stories front and cementer at this hour, yahoo! deciding on the next steps after the earnings report on february 2, according to the reuters report saying the company turned away several buyers for the core internet business. u.s. auto makers recalled a record number of vehicles last year. government officials put the 2015 total at 51.3 million vehicles as regulators crack down on safety crashes. lagarde running for a second term, and she previously said she was open to the idea, and no others expressed interest in the job thus far. we asked secretary jack lew whether the united states would endorse her and hesitated to fully do that, but offered a

personal endorsements, but not on the behalf of the united states. >> not yet. starbucks beats same store sales, rising 8%, beating estimates, however, growth was slower than expected in china, europe, and asia pacific regions. starbucks' second quarter outlook disappointing investors, shares down 4% in after hours, this morning, down by 2.75%. later today, exclusive interview with the starbucks founder and ceo, howard schultz on "squawk on the street" at 9:40 eastern time. boeing cuts production of the 747-8 in half. it is mostly used as a cargo jet, but will be part of an upgrade to the air force one u.s. presidential fleet. they could be called the dynamic duo of philanthropy. bill gates and bono looking to

change the world, and i got to chance to talk with both of them in the face-to-face video collaboration with facebook. that collaboration features conversations with influential leaders and thinkers who might not otherwise share the same stage. announcing a $50 million match, and whatever red raises this year, we'll match it, to bring on new corporate spot sores. red's done a great job with sponsorships. >> it's political too. that's really important to me because the real money is in government budgets, so it's just when you see gap commercials or bank of america or coca-cola or apple, they change their app store, that's political. it's just like you think about red like that. this switch i hear about, actually, only yesterday, and thank you very much, i can do any of the work, give me a million in 2000, and that was great, and then it was a great

investment. suddenly, easier to raise money, and this is why we are here, and we need more companies because budgets have been cut because of the trouble in the world, markets sffalling, and in 2006, aids was the big news, here, top of the mountain, the 1% of the 1%, and two years later, financial crisis, and, you know, we have to -- we have to do everything to get people's tension on this, the next ten years decide if this greatest health crisis in vp 600 years i rid of it. we're this close on transmission. the gates' foundation invests in a vaccine, we hope to have one -- >> yes.

so i want more asian companies. that's what i would like. i come here because there's people who can help or get in your way. beatings become muggings. handshake or arm wrestle. that's why i am here. visit cnbc's facebook page to learn more about the face-to-face series. there's a number of them out there, and do take the time to check them out. >> i caught up with virgin group founder, sir richard branson, talking about everything from the impact of plunging oil prices to the space race, potential bubble in the unicorn market, and that's where we began the conversation. >> i'm sure that there's always something of a bubble in the valley. there's going to be good companies that are going to come through and do enormously well, and there's going to be companies that fall flat on

their face. there's certainly -- you certainly have new companies that have come to the market or not even come to the market, but have been around the last couple years i suspect were well overpriced, and, you know, some come unstuck for investing in them. equally, got in early with air bnb or a number of great companies, you would have done very well and afford a few failures. >> what do you make of oil prices? >> it -- oil prices are good for the consumer. they are good for most businesses. they are good for the airline businesses, and, affable, if you're an oil company, they are not good for you. what the market missed is with oil below $30 a barrel, likely to stay there for some time, there's no need to try to make up the recession. this will be the greatest boost to the economy you could

imagine, and everyone's going to have money in the pockets to spend. >> does this mean higher profits for airlines or lower prices for consumers? >> i think a bit of both, i mean, i think at the moment the hedges have come off airlines, and then, you know, they can't afford to reduce fairs, and that will stimulate demand, and they can also afford to make decent profits, so i think for the airline industry going forward, it's, you know, it's -- should be a very, very good time to be in the industry, and it's, you know, i remember $149 a barrel, and now it's $26. if you can't make money today, you can't make none any time in the airline industry. >> virgin ga latic back on track after the accident. how quickly will we be back in the air? >> i learned not to give dates. they, you know, we are respect

the space spin in two and a half weeks time. i can tell you that, and it's going to be a day that all the astronauts in waiting, all the engineers worked on it. we'll be celebrating. >> do you and musk and besos get together to compare notes on how to get to space quicker? >> unfortunately, we keep, in a friendly way. i'm friends with elon. jeff i don't know enormously well, but, you know, you need competition, and the public benefits from the three of us, you know, getting out there and competing. you know, our spaceship comes back and lands on wheels. theirs don't. you know, we'll banter like this, and that's good, and people have a choice what spaceships they want to use to go to space, and because ours is shaped like an airplane, we hope to do point to point airline

travel one day. theirs is not. if you interview them, they give reasons why they have advancing over us. >> he was being polite. there was -- underneath that, there was trash talk among all of them. >> here's why our plan is better and why we will win? >> yes, across the board. >> i don't want to go to space. >> you don't snow. >> no. >> he's not seen the martian yet, but he sounds like he and matt -- >> he's only on mars, and he's, like, we'll see you in four years. we get back in four years. eat potatoes that you grow in your poop between now and then. how does that sound? >> delicious. >> runs out of ketchup. >> trying to use all the produce. >> that's right. >> ugly stuff too. coming up, the fight against isis, another cabinet member joining us today. how to keep americans safe, isis, how iran plays into the middle east turmoil, and ash

carter will join us after the break. meanwhile, check out the futures at this hour. 187, up 187, 25 on s&p, and 71 on nasdaq. "squawk box" will be right back. ♪ lost shipments, international regulations, security breaches, lost revenue lost respect. well crafted solutions for today's problems in commerce. pitney bowes, the craftsmen of commerce. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here.

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britain, france, and four other countries met on wednesday pledging to intensify the fight against isis, and joining us now, and we're pleased to say, u.s. defense secretary, ash carter, secretary, great to have you. >> great to be here, thank you. >> the piece in "politico," take the fight, increase to isis, published today, wasn't it? what i just read, yeah? >> i don't know what article you're talking about, but, yes, we are increasing. we are doing more because we needed to more because we need to defeat isil. i'm confident we will, but i want to accelerate that process. >> with our coalition? >> well, talking to others about both the defeating isil in iraq specifically taking mosul and

what roles they can play. guys who are already doing quite a bit but can do more, and in two weeks, bringing together defense ministers of everyone else who is on paper a member of the counter isil coalition, but many of them are not doing enough or doing nothing at all, and i -- you know, we're prepared to do a great deal because we have the finest fighting force the world has ever seen. we can do a lot ourselves, but, you know, the united states doesn't ask people for favors. we don't grant favors either. so we're looking for other people to do -- play their part and by describing our operations plans, they can see how they might fit in and their capabilities. >> do you feel comfortable describing our operational plan? >> outline, sure, yes, i can. good for people to have a mental picture. in your mind, think of two big arrows -- well, first of all, think we have to get rid of isil in iraq and syria, where it started, claims to be the beginnings of the state which we can't have. that's necessary.

it's not sufficient because like a cancer, that's the parent tumor, but it's spread around the world, and we have to fight it elsewhere. by the way, we have to protect people back home as well. those are the three fronts. on the first front, iraq and syria, has to be done. think of, if you're thinking of world war ii newsreels with big arrows on them, think of one arrow going towards mosul in iraq and one going to raqqa in syria. mosul is the biggest city they occupy in iraq. it needs to be retaken. raqqa is the capital of their so-called state. it is, by the way, where people sit at key boards and try to get americans to attack americans, orchestrate jihadi attacks in paris. we can't have that. we have to destroy in those two places, and i'd like to get on with that as soon as possible. as i said, we're prepared to do

a lot, but, you know, when they're defeated, we'll remember who helped. >> the elephant in the room was always the b room, the boots on the ground. if we get help from other countries, that's going to be part of the whole -- >> we -- i got to say, though, we have boots on the ground. >> right. >> but a larger amount. >> well, we'll probably have -- i just gave basically the campaign plan description i just gave you to the 101st airborne division in fort campbell, kentucky last week. they are the next unit to rotate in there and do advise and assistment to be clear as everybody knows, we have boots on the ground. our strategic approach in iraq is to enable the iraqi security forces to take and hold territory, not because we couldn't do that as a military matter, but because once you've taken a place, somebody has to hold it and govern it. we've been to that movie.

it's difficult for a foreign army to do, so our strategic approach is to enable capable motivated -- they are hard to find, but they exist. >> hearing from analysts and other military experts who say the only way for this to work is significantly more boots on the ground. you say, not necessary? >> we'll do more, and by "boots on the ground," they mean to substitute for opposed to enable iraq security forces or kurdish forces or syria-arab forces. i don't think we or anybody outside at the end of the day can substitute for them, but there's a lot we e can do to enable them, including being on the ground with them. we don't have any -- we're looking for opportunities to do more, and there will be boots on the ground. i want to be clear about that. it's a strategic question whether you are enabling local forces to take and hold rather than trying to substitute for

them. that is a strategic intention that we have, and they do -- remember, it was iraqi security forces that took ramadi. they didn't do it alone, but the prime minister is proud of what they did, and that generates momentum. when people feel success and victory and feel like they are getting their own homelands back, that's further incentive to them. that's how we approach it. we'll have success that way, and we're going to, but requires us to do more and requires that other countries do more, and that's why i'm trying to round up people who say they are part of the coalition and have not yet done enough. >> whose side do we take in syria as part of the issue? secretary kerry was trying to get the middle east partners at the table choosing sides between whether assad stays or find the

right rebels in the area. it's more problematic than sending troops in. >> it is. it is a different situation. by the way, if we can cut off communication between raqqa and mosul, which we are doing by taking control of the roots between, now with raids and bombing those routes, that will be essentially separating the iraqi theater from the syria theater. with respect to the syria theater, that's right. the end state there has to be one in which the structures of syr syrian government survive without the person of assad. and marry up with moderate opposition forces, put syria back together in a decent place, which people richly deserve, and then turn against extremist with us. you know, in the meantime, we play the game on the field, considerably more complicated than that, and so we're looking for and finding people who share

our objectives, whom we can back, and then we bring the huge might of the american military machine to bear, the word i use, enable them, make them successful in their own territory. >> mr. secretary, we talked to secretary kerry about -- it's very troubling issue for me. i think a lot of americans, and that's gitmo, and it just tesee like there's all bad answers, all bad options in this. i'll tell you what i mean. we let ten guys out, some not necessarily gentle individuals who are not completely rehabilitated. recidivism is 20% on low end. out of the ten, say two go back and join the fight. a lot of americans, the idea that we're going to have to maybe try to kill these guys on the battlefield with a drone.

we got them now. they go back in the field, joining up on al qaeda, and now we'll rid of them another way. we got them right now. does habeas corpus and good of the eight we let go make up for puts the guys back in the fight? >> let me be clear. i do not support and don't allow -- because i have the final sign off, release of anybody that i don't judge can be kept off the battlefield by the government to which we're transferring them. you're right. there are people who are in gitmo whom i'll never make that decision about. i can't imagine sending them anywhere. now the question is, if you'd like to close gitmo, which, on balance, i would like to do, and the reason is simply that i'd like not to pass this on to the next president of the united states and secretary of defense, if i could, but i can't close it

by letting people go that i know are not safe to let go. what do you do? find another place where these people can be in prison, presumab presumably, for a very long time. that's forbidden by law right now, so we have to get the congress to agree, and i made a proposal that the president sends to the congress, and we'll see if we get agreement. i hope we do. reach across to people who, like me, want to close gitmo, but only safely. there are people like that in the congress. many people like that, makes common sense, and see if we can get somewhere. i just rather than not hand it off, but it has to be done safely. >> topics to north korea. there was a delegation invited here to davos to speak. their invitation revoked two weeks ago, and in part because the world economic forum found that most u.s. countries, or most countries including the

u.s. probably wouldn't come here if they were here. if -- should there be some form of communication going on that isn't? >> that one didn't come to me. we don't have diplomatic relations with north korea. we, on the defense side, have a very narrow, but very important channel at the dmz. i was just at the dmz awhile ago. you're talking about counter isil, and we have a lot of issues around the world, but this is a place where we talk about we have to be ready to fight tonight, every single day i think about our posture. for many people, it's a throwback to old days, and it is in many ways, but it's something to watch every single day. now, we have some narrow, again, communications across the dmz where we exchange messages and try to avoid accident talal try to avoid accident tala

conflict. that would be a very large war to wage with allies in south korea. we would win, no doubt about it, but a very unpleasant war to wage. we'd like to avoid it if we can, and only way to do that is to have some form of communication. you know, i -- the biggest worry about north korea has been, other than it's sort of strange and isolated behavior, has been the nuclear program. there, there are talks in which we do participate, and not the defense department, but secretary kerry does of the so-called six party talks, which are china, russia, and south korea, and japan, and the united states, and north korea. that's where they have not got anywhere yet, but hope they will, but in the meantime, it's fight tonight, we deter every single day on the korean peninsu peninsula. >> thank you. i know you have somewhere to go, but if you want to hang out, you can. you have other important things happening? >> i do, but to add, one the reasons i'm here other than see

other world leaders and talk about security affairs, i told you, it's my privilege to lead the finest fighting force the world has ever known. that's a gift i would like my successors and successor's successor ten to 20 years to have. therefore, we have to continue to be the first with the most in technology, in great people. we're an all-volunteer force. we have wonderful kids. we want to make sure the next generation is wonderful kids. i'm talking to people here who don't know anything about the military, but know something about business about technology so we stay close, and, also, how they manage people. how do they motivate young people to want to be part of their organizations? mic microsoft or the others represented here that i've met with because my duties are to, today, but they are also to tomorrow and the next thday. >> part of the incue baiter. >> that's the region for the

reach out to silicon valley and other hubs. when a started my career, i'm a physicist, as you know, when i started my career, it was a habit, it was engrained that your knowledge created with it a responsibility, an obligation to contribute. because people don't serve in the military as many, and so not as many people are taught that way. at the same time, i think innovative people are frequently patriotic, and they like to do things that make a difference. to, here's something where you can make a difference. we have problems that are really consequential, really great. you could work on them today. go home, tell your family, i've been part of something bigger than myself all day. and that's a great feeling for a young person. i'm trying to build bridges that allow people who are hot shots elsewhere to come in and have the experience of contributing to security, not for lifetime necessarily, not necessarily by joining the military and staying

in, but by spending the time working on security problems, and i find a lot of uptake in doing that, and we need to build and rebuild the bridges. it's been technology and great people that make our military the greatest. i want to keep that going. that's what i'm working at. >> that's great p. >> thank you. >> thank you, thanks for having me, appreciate it. when we come back, the first major winter storm slams the east coast. an update after this. check out the futures this morning, up sharply. a gain 200 points for the dow, s&p up by 27.

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the world economic forum, a great week of news makers comes to a close on a high note. >> joining us this hour, russia expert, bill browder, microsoft international, tom farley and jim briar. plus, bracing for a blizzard, flight delays and cancellations, a quarter of the u.s. population under a winter storm warning. >> we are live in davos, switzerland at the world economic forum, and the third hour of "squawk box" begins right now. ♪

first in business worldwide, we are live in switzerland, and look at the futures because they are pointing to a positive start at the open, and looking like they will open up and perhaps open up big, dow looks to open 182 points higher, nasdaq 72 higher, and s&p 50025 points higher. look as what going on with oil. crude, of course, wti crude, now at $31.07. things have ticked up pretty materially. joseph? >> yes. and a few stocks, also, not just the overall markets, but watching these today. we talked about this earlier. i hope you were watching. general electric posted results today. the bottom line was 3 cents ahead of estimates, but revenue was a bit short of expectations, and market may be up, but ge is pulling back a little. elsewhere, this next stock is getting a boost from piper jaffrey, invested in what i'm talking about since you moved up

so far, apple stock ahead of next week's quarterly earnings, 98.25, and the firm says the stock could jump 50% by the time of the presumed iphone 7 launches in september. >> boeing cuts production of the 747-8 models this year dealing with declining air freight market. mainly what nay are used for as the hub and spoke model has taken over. you don't see a lot of 747 gas guzzlers around. other than going to maui for the first family. >> ecb president bringing the dovish market rallying message today, speaking this morning, saying the ecb has plenty of tools and the willingness and determination to act. steve leisman has more on the draghi effect and what it means for the u.s. federal reserve,

steve? >> becky, good morning, mario draghi surprised markets yesterday by promising more stimulus in march, but. reasoning suggests something the fed could follow. asked how to come forward after the major expansion of the stimulus and says it needs to do more. does that damage the ecb's credibility? here's how draghi responded. >> the credibility of the ecb would be harmed if we were not ready to review and possibly redr monetar reconsider monetary policy stance when we don't have full information. >> the simple had changed so the ecb needs to change. the inflation outlook changed dramatically, so what's changed here in the u.s. since the fed's last meeting? three indicators. the s&p, since the fed last met, down more than 9%. oil down more than 11%. and maybe one of the more important things, our tracking survey for q4 gdp growth,

average of guys on the street, has fallen by 1%. what was a 2% fourth quarter outlook is not just 1% in the cnbc rapid update. what might the fed do? well, you can imagine it acknowledges softness in the data, notes volatility to the extent, tightening financial conditions, and, third, underscore the data dependence of future rate hikes, that is, they are not on auto pilot. the fed is a long ways from reversing course, but next week signals in the words of evercorp., quote, time out. and this is delay in any future rate hikes until inflation and growth outlooks become clear and markets calm down, andrew? >> okay. thank you for that, steve. we appreciate it very, very much. we should turn to the turmoil in the global stock markets. yesterday, russia hit a record low, falling to 85 against the

dollar. joining us now, a russian expert, we only see you once a year here in the mountains to talk russia. you have an extraordinary book that came out last year. >> yes, indeed. >> could be a movie? >> working on it. you could work on it with me. you're an expert in movies these days. >> we could talk. russia, in particular, the price of oil, how long this -- if it stays at the prices, the government, at least as you see it, remains stable? >> well, basically, it's a situation where the two critical things are at critical prices. oil is, i mean, sort of $80 was their break even, you know, $30, $28, $33, it's bad for russia. on top of that, you got the situation where sanctions where there's about $600 billion parked in currency debt, bang

reserves which of people say 150 of that is fake, stuff like 3 billion to be owed by ukraine that's never to be paid, stuff like that. 600 billion in debt, 200 billion in cash, and they can't borrow more in the west. as this money -- as the debt repayments start to run down, they run out of reserves. that's the problem for russia. they have to get sanctions lifted or oil prices have to rise, or you're talking somewhere between 12-24 months, and they have real problems. >> understand two pieces. one is your expectation for oil. you're not an oil analyst, but you say what? >> realm, i mean, i look and say i was in davos last year, and no one predirected the crash on oil. i'm not the guy on the record saying -- >> you short russia. the question is, the thesis, investor out there watching this, you do what based on your view of what happens? >> well, first of all, don't invest in russia in the first place. it's arbitrary. whether the oil price is high or low, you say the oil price doubles from here, and then you

don't make money because the russian government seizes the companies you invest in. where's oil going? up because it's down so much. i'm not an expert, and if i was, none of the experts knew it was going to happen last year, and i'm not the guy saying it's going up. >> as an invester begin this thesis, the knock on effects -- how do you make that thesis play out, if there is bun? >> talk about this a little more globally. if russia is in a situation where they are going to have an economic -- a serious economic crisis, which i believe they are going to have, what does putin do in the economic crisis? he ends upstarting more international invasions because that's how he gets his popular support, and if he does that, it creates more uncertainty, and if, you know, the -- the bombing in syria leads to more refugees going in germany, and that creates more problems for merkel

there creates more uncertainty about greek debt. everything is related. what i say putin's problems become our problems with the oil prices this low. >> talk more about putin. there was a long term british inquiry out this week that suggested that putin probably knew about the poisoning of niko. in is something people around the world remembers for a long time. does the ruling make a difference? >> two parts. one is, you're right, we knew that putin was a stone cold killer for a long time, and they passed a law in 2003 in russia allowing them to do assassination of people who are enemies of the state. we knew that. what's special about this and what's interesting about this is you have a 326-page report produced by one of the most unimpeachable high court judges in england putting all this stuff on paper. it pretty much certifies that this was a state sanctioned assassination using nuclear material in the center of london. the fact it's so certain from a

high court judge is really important. the second thing, and this is the thing i find most disturbing about this is the government -- the british government's reaction. the british government basically said we're going to have a stern word with the russians over this, so they are so interested in appeasing russia that they are ready to allow nuclear attacks on british soil without consequence. i find that disturbing because i'm a disdent, enemy of putin from my own experiences. i live in london. he has the green light to do whatever they want. >> thank you. always interesting to see you. can i ask one, separate question, you've been here, and we are asking people last day, we're in davos. >> yep. >> you walk out of here in a better or worse mood? >> good mood. i -- >> yeah? >> it's been interesting. >> no, no, what you think about the markets and global economy and how -- >> well, basically, you know, everything has gone down so much

recently that the most likely thing is we're going to see a nice little uptick from overt pessimism to less pessimism, but i don't think the world is going anywhere good in the next year. a lot of big problems ahead. we have china slowing down, syria, you got refugees, all sorts of things that keeping things unstable, and it's not like i'm bullish leaving davos. >> fair enough. thank you. >> thank you. >> great to see you. up next, why aria huffington believes the media should stop covering trump as a conventional candidate running for president. stay tuned, we'll be right back. here at the td ameritrade trader group, they work all the time. sup jj, working hard? working 24/7 on mobile trader,

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the government has imposed sanctions that prevent enrolling new customers in medicare advantage and stand alone prescription drug plans. move does not affect current customers, though, related to the handling of appeals and grievances saying it's fully cooperating and working to resolve the matter as quickly as it can, but decline today.

>> i sat with aria huffington and will.i.am, and not surprising surprisingly, the election was front and center and asked how the huffington post covers trump if he becomes the republican nominee. >> with we continue to cover him as a clear and present danger, and i feel it's very important for all of us in the media to stop covering him like a conventional candidate. somebody who says he would stop muslims from entering the united states that is deeply un-american, contrary to what america stands for. donald trump is main stream extremist. if he's not treated as a mortgageal candidate, 60% negative ratings. truth is that many people were

incredibly distracted can be elected. it's our responsibility to keep telling the truth about this. >> what do you think of sarah palin's reemergence with trump? >> deserve each other. >> cooper says, how do we, the voters, ensure our voice is heard and our voice counts? >> you know, nowadays, to be able to cast your vote and then statement take the conk letting everyone know you voted, you would think we could vote from the phone. if i can bank from the phone, i should be able to vote through my phone. >> because of social media, voices are heard better than ever. >> she not comparing donald trump to hitler specifically, but almost going close there.

interesting. see the entire conversation and all our series on facebook.com/cnbc. joe? >> up next, more than 77 million americans are in the path of a major winter blizzard set to pound the east coast, mid atlantic, and tomorrow, mostly, latest on the storm, impact for travelers and airlines after this break. hundreds of crash simulations. thousands of hours of painstaking craftsmanship. and an infinite reserve of patience... ...to create a vehicle that looks, drives and thinks like nothing else on the road.

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i believe markets higher by year end. i believe there is a need for blood in the street. we need to work out all the excess inventories and energy, and the only way it happens, oil stop pumping, and, you know, this is good. this market correction weeds out the weak. >> that was blackrock larry fink, joining us in the last hour, talking about the current market environment. futures now look up, looking up big. looking the dow opening up 200 points higher, nasdaq up 74, and the s&p 500 looking ining to o

27 points higher. joseph? 77 million people in the u.s. covered by winter weather warnings. almost a quarter of the country's population. hampton is in washington, d.c. with the flight delays and cancellations this morning. >> reporter: joe, we have updated data on flight kapslatikap cancellations today and tomorrow, and right now, the number looks to be more than 2300 flight cancellations today, and tomorrow, around 2500 planned tomorrow. those stat from our friends at flightaware.com, and major hubs including here at reagan national, are, of course, impacted quite a bit. the charlotte hub and american airlines in particular hard hit, losing about 766 of their flights, 24% of their schedule, and southwest, nearly 470

flights plus, 13% of their schedule. now, here at reagan national, it feels, frankly, like a saturday more than a weekday. about a third of the traffic we would normally get for the morning launch as far as people trying to get out of here, most of whom believe they are getting out ahead of the storm, no real snow on the ground here as of yet, and the other thing, because of the airlines, too, are also waiving the fees to change flights, and some even giving folks the opportunity to reschedule, that's lessened the amount of stragglers or those stranded in the country as well. again, the storm is coming. the airlines are bracing for it in advance, frankly, by cancelling in the neighborhood of nearly 5,000 flights over the next couple days in advance of the big storm. back to you guys. >> thank you.

we'll be watching, wishing you the best with the weather there. we're going to be coming home to a lot of it as well. coming up, a digital revolution, how can large companies protect the cloud? that's the question the president of microsoft international's going to join us after the break. first, though, look at u.s. equity futures. we're looking at the dow opening up close to 200 points higher if it stays this way. back in a moment. >> if we go back to where i think the s&p is going to to, 1700, it's a 10% additional downside from here. when you look further out on the horizon, look at where we are, especially in asset categories like bank lopes, high yield, this is a very interesting time for people to get money to work. this is not 2008 or 2009. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph,

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>> welcome back, everybody. the digital revolution and role in globalization was a topic this week. companies move in with disru

disruptive technologies but as more and many data shifts into the clouds, there's questions about security. we have the president of microsoft international, and thank you for being here today. >> you're welcome. >> before we talk about the cloud, give us insight what's happening internationally? we had hp here yesterday, saying that despite all the concerns, we hear about a global slowdown, they are doing well in a lot of the markets, and sales are up. what can you say what you see internationally? >> as a troubled world and also here, 30 ceos of companies, this is actually a very exciting time. why? because all businesses in the world, banks, retail, manufacturing, garment as well, try to reinvent, actually, their purposes as businesses, and the way to do that is by embracing digital platforms, mobile, cloud, combine those capabilities to disrupt before they get disruchted, and the

good news is, the first company we inspire and really enable those companies to define a different future for their business. >> meg whitman talked about how they exceeded the public cloud computing to guys like you, amazon, those battling for the top. when you lack at that battle between you and amazon, who is doing it better? >> well, you know, as a company, i decided to be a platform, not just about infrastructure, but she's also a platform to get applications to run and help businesses to raise the productivity. those are things we are trying to do as a company, enabling us to help, as an example, to reinve reinvent a services business, which is about predictiveness, and the way we do that is by applying machine learning, so very smart algorithms on top of the club called azure, to

actually have a higher level of service agreement between companies and their customers, and millions in the world. that's a very new business model, very disruptive too, and that enables us, i think, to innovate and help many other companies. >> you recently brought down prices on azure after amazon did the same with their products. there's people that wondered, does this business get km commoditized? how do you make sure it does not. >> there are a lot of opportunities to build things on top. this is about moving from a product manufacturing business centric to a services business. the way you do that is basically by capturing a tons of data with a connective things like, for example, car as well, and not just data, but reasoned data, realizing that, and predicting what could happen to actually build a set of services that could really help innovate.

>> what's an example? because we have this data we captured from your car, this is what we offer as a service? >> exciting example for us, china is a country that we have been working with a company there, a car company, to build all the services, all the services for traffic, litigation, entertainment, and more to help the driver do a better job and manage the car in a separate way. that's in the cloud. which, by the way, is managed in china with a chinese company. we're the only provider of doing that. the other guys don't do it, so we are able to accommodate needs of chinese and global companies. >> can you speak to the privacy and security concerns? >> yeah. >> the big issue just this week is what's happening between europe and the united states in terms of sharing data or not. >> yeah. >> the other disconnect to me, at least, which is, you know, you talk about the cloud, all the data we're going to need -- we're going to give over data to

companies like yours so it all works together, and, yet, at the same time, we want to encrypt data and keep it close. how can we do both at the same time? >> it's a very important issue and questions asked by all customers and governments of the world. as a company, we stepped up in many ways, by embracing privacy security across the world. in the e.u., we have policies that are implemented in europe to comply fully with the european needs. in china, we build off china. in germany, we have a partnership with deutsche telecom so they understand their private data stays in germany. the core of what you do is adapting your platform to uni e uniquely meet needs of unilateral requirements. what we learned in the last few years, they are a big player in the space, and we have -- >> there's technology companies, by the way, that are doing -- might be regulations, but there's companies, apple,

google, others, phone encryptions, encrypt everything. forget about regulations. there's an element where technology is ahead of the regulations? >> that's not the philosophy. philosophy is not just to comply, but help, and blanching the needs to secure privacy of data for your citizens. we're not a blocker for development. it's a fine balance. >> right. >> i think we are trying to participate with policymakers, and enabling us to do fine limitations and deal with that without being an obstacle. >> thank you very much for joining us today. >> well, thank you for having me. thanks. >> coming up, a rough start to the year for the markets, and, therefore, major exchanges too. joined by nyse boss tom farley next. see oil at this hour, a quick look, it is up about 6%.

>> you. >> heading to break, here's a look at this week's news makers and what they've told us they are taking away from davos. >> what i hear ceos talking about is top line's going to stay tough. it was tough in '15. we'll manage our companies through real focused expense discipline, manage our shareholders through buyback, m&a probably with valuations where they are, probably remains quite active. >> so business around the globe seems strong to me right now. there's a lot of challenges and a lot of economies, but we feel good about the technology and offerings, and so there's a slowdown in some economies, but i feel good where we are. >> the ceo community i talk to, which is our clientele, across all industry groups and all geographies, and most the climates are global in nature, so there's businesses all over the world, they are clearly feeling some type of slowdown in the businesses. >> what we're not seeing yet is

financial contagious, so to speak, has not passed over the wall to the consumer, and hopefully, it'll stay that way.

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2 hur 200 points higher, and they are suspended from enrolling more, and the government imposed samgss come after complaints about cigna's appeal and grievance procedures. dismiss the by agreement between the two sides, according to the court filing. the case involved in oklahoma, a mailman injured in a crash of a s saturn ion model. buying apple ahead of next weak eagle earnings as shares could jump 50% by iphone7 launch in december. starbucks beat, but the shares have been under a bit of pressure after the coffee chain gave a soft current quarter outlook, and howard is on with the gang, "squawk on the street" this morning. joe? >> major exchanges come off the

worst fourth quarter for initial public offerings nearly ten years, and the turmoil in the markets, the first 2016 online lender elevate credit postponed the bid to go credit, and joining us now, tom farley. amazing it's that sensitive, isn't it, tom? postponed it. can't write off the year, but write off the first quarter for not being an easy time to go public? >> thanks for having me on, but, boy, a negative lead in. >> yeah. i didn't write that, though, as you saw. >> fourth quarter, actually, as an exchange, was fine, but what you referred to in terms of ipos is right, volatility up, ipos down. not a single one in january. there's cause for optimism. the pipeline's very big. we had a couple dozen companies in the fourth quarter that were prepared to go public that just didn't, and they include great

companies, big ipos, and univision, soul cycle, a lot of opportunities, they are not going away, but waiting for the window to come back. >> after you sigh volatility like this, people worry because it's the beginning of the year, looking at the first of the year being, like, wow, how long does it take for confidence to build back up? you don't flip a switch, going public tomorrow. >> no, absolutely. it's fact based, look back 20 years, see periods of heightened volatility, how long it takes generally is six months to a year. the good news to the extent there is some with respect to the ipo market is this period of volatility goes back to late august. >> oh, okay. >> this week, again, seen heightened volatility, but it's been heightened since then. given the extreme volatile think this week, last week, i don't expect the ipo market to roar back soon. it's a matter of months, not

weeks. >> the other piece of this, silicon valley and everybody, the valuations dropping like a stone. the unicorns talked as a unicorpse. what's your sense? >> they have come down in the public market. more interesting to me is the availability of financing in them, in the private market came down very, very quickly. you've seen traditional public market investors who were investing heavily in the private market are not doing so nearly as -- >> do you think -- do you think a lot of the unicorns eventually go out of the business because they don't get to the window they been waiting for in the ipo market? >> first, there's unicorns here just fantastic companies generating profits, growth is explosive, changing how we live lives, those are fine of the it's the next batch to watch. the ones that are losing a lot of money and don't have access to capital. they are going to have to be clever in how they fund themselves and get in the public market. >> wow. so at this point, 2016, when we look back on it by the end of

the year, great year for the new york stock exchange? things move forward? organic growth? you always have to be optimis c optimistic, i guess, right? >> i don't always have to be optimistic. honest, pragmatic, but to explain something for you and the viewers. our business is more about trading, frankly, than ipo. >> it's good? >> financially speaking, we are doing well. two days ago, the volume was 12 billion shares, nearly double average volume. i don't like to quote about it too much because there's companies back home, oil and gas sector on their backs right now, but as exchange, yes, it's a fine year. i don't want to get into projecting our business, but just like last year was a good year, i suspect this year is a good year. it's the ipo market that's somewhat troublesome. >> great, thank you. great to see you. >> i'll find out who wrote the introduction and there's hell to

pay. >> thank you, thank you. >> okay. when we come back, is there a tech bubble brewing? we'll be joined by jim breyer with choice words for the unicorns out there. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ they speak louder.

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2015 known for a stampede of unicor unicorns, there's 150 companies valued together as a herd at $525 billion, but 2016 may be a different story, and many are calling for a unicorn apocalypse. or the unicorpses. joining us now, jim breyer, founder and ceo, and you, if i read headlines correctly, you think there's a lot more blood on the streets? >> there will be a great deal of blood on the streets. the risk-rewards that developed over the unicorns simply have

become and have been for about a year, completely out of control. i do believe there's 10-20% that will be up over five years, a couple hundred percent, but there's great carnage for the vast majority. >> 80-90%, suggesting that those go out of business? they get bought up? what happens? >> combination. some will be forced to be bought. >> right. >> some will go out of business. the vast majority will have to do significant down rounds, restructurings, and work out a long-term strategy where traditional metrics of cash flow, operating profit, and long term sustainability matters. >> talk names, or differentiate between the categoriecategories there's uber and other tiny guys that are literally just crossing the billion dollar mark. >> my great concern are the tiny

that are crossing the billion dollar mark to $5 billion and have no revenue model, and in some cases, not even an extenseble interesting product. that's where i think is the most carnage. on the other hand, i will say one of the great themes here in davos and great interest is art official intelligence, combining that with media, entertainment, medicine, and this has been a great davos when it comes to how artificial intelligence transforms many of the great businesses and create great opportunities for entrepreneurs. >> hey, jim, this is different than 2001 because most of the -- the companies did not go public. it's not retail investors burned this time around. that's the good news. who does get washed out? who will be hurt in these down rounds? who is losing out? >> there are a lot of sovereign wealth funds, large institutional investors, in some cases mutual funds that will see significant price corrections. >> wow. >> that's what i was going to

ask about. can you speak to the public investors? you're right, it does not feel like 2001 from a public investors' standpoint, other the fact that t.rowe price and others play this. except they argue that it's such a tiny portion of the funds that it's insignificant. is that right or wrong? >> i believe that's right. this is one where it's institutional investors, large, outside investors who poured into technology over the last two years that will suffer the most pain. >> are you going to be buying stuff, trying to buy up the carnage? is there opportunity in that way or just sit on your hands for the next year or two? >> investing very aggressively right now where artificial or human assisted intelligence meets health care, education, financial services around the block chain, and media. >> like what? what's the coolest one to talk about? >> legendary entertain m. we're in the process of selling our company for $3 preponderate

5 billion to wanda, and we'll have a chinese owner, a wonderful chief executive in thomas stahl running it from los angeles, and we applied data an will t littics to the film library. >> what's it do for a movie? >> monitoring how people react to trailers on facebook. we then change the trailers based on responses we've been monitoring on facebook, "interstellar" a prime example of a movie we did that and use a.i. to see where to open. it's exciting. >> what did you change as a result? >> not much. nolan had a lot of up cut footage. i wanted a longer director's cut. >> speaking of a.i., google's doing a lot with it and they talk ethics. they are already starting to think about when computers are going to be smarter than us. do you believe computers will be

smarter than us and be able to make decisions the same way humans can? going to the larger question about jobs and what's going to happen to the world, but should we be optimistic about all of this, and do you have any fear about all do you have any fear about this? >> i don't have any fear because for me the investments we're making are around human-assisted intelligence. doctors learn from algorithms how do jobs better worldwide whether it's cancer medicine, sharing diagnoses, prescription information. i think a lot of the power of these technologies will be delivered to the customer and the consumer, and that's why i'm optimistic about investing in these businesses and also optimistic where we sit in terms of technological innovation. >> thank you, jim breyer. really good to see you. let's get down to the new york stock change.

jim cramer. where are we? >> we're up. clearly oils managed to go 30, go higher. the actual earnings and the underlying indices are not that good. so the question will be do we take advantage of this increase or leave and decide that, you know what? the market is oversold? it can bounce. things are better because oil's higher. this is a difficult confluence. i think a lot of people are going to find out, all right, it's a little too hard. howard schultz. people don't like the quarter but the quarter long term is good. short term they don't like it. i guess what i'm saying i've never seen a level of confusion this particular morning than i've seen in some time. >> jim, again, what's driving all that confusion is just the mixed messages people have been getting, or is it like this mixed emotions that investors seem to have reacting to all this stuff? >> becky, this is -- this cuts to the heart of it. it's an emotional moment for

investors. they seem to have turned on the market. at the same time when you see oil go higher, people are now interpreting that as demanding are getting better. i'm going to put this out. i don't agree with it but i'm going to say it. there's going to be some worldwide stimulus move, japan, china, europe, and all that could happen in the next 72 hours. that's part of the enthusiasm. i'm not buying it, but i have to tell you, that's the chatter. >> we've got a fed meeting next week. that will give us more clarity. i guess all they have to do is sound dovish and people are like, game on again? >> the banking industry is very interesting. jamie starts by saying, listen, we can take a bunch of fed rate hikes. yesterday they said, wait a second, we can take one fed rate hike. all of this is happening in a shotgun fast incredible market where we're thinking the fed is going to say something positive

because the oil is going to 20 and,000 we're thinking maybe they won't because the oil is going to 30. thinks are changing every minute. i'd love to slow it down and say it's not perfect, it's coming down, maybe there's opportunity, but that's not been the message in the market. >> it certainly seems a lot faster, i'll definitely give you that. >> too fast. >> i agree. >> thank you. when we come back, davos and the incredible moments. "squawk box" when we come back. >> a lot of people can help. a lot of people can get in your kwa. the meetings can become muggings. whether they're getting a handshake or an arm wrestle.

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attracting the talent and companies of tomorrow. like in the hudson valley, with world class biotech. and on long island, where great universities are creating next generation technologies. let us help grow your company's tomorrow, today at business.ny.gov it's been a big week for us in davos, switzerland. we've interviewed some legendary

investors and some of the top in the world. much has been with regard to the tumultuous start we've had since the new year. >> energy, financials, housing, media. every single one of them is down precipitously in three weeks. what happened? what was the trigger point here? i'm just not seeing it. >> consumers' confidence is down, wages are down. we seen that. that's kind of a tug-of-war. it's going to be interesting as we play out the first quarter. >> i think the risks are asymmetric on the down side. that's why i said i think the next move will be thwart a quantitative easing, not toward a tightening. >> i don't believe the selloff of oil is really reflective of an economic selldown. overall it was up. what we're not seeing is a demand for oil is a massive

oversupply of oil. >> the combination of china, oil, and probably a different outlook in terms of fed stance or policy from a month ago, having them mix the partnershor and we think the market's adjusting to that. >> the market is recalibrating. i'm a little more today. you know, i come here to find what consensus is more than learning anything that's really riveting. >> exactly. >> andrew, i have to say that's kind of the arc of the conversation over the course of the week. it started with people being so pessimistic. by the end of the week people are feeling a little more resolute and trying to look beyond it. >> the question was was that mario draghi and then we thought, good news. always the question in davos, is it a concurrent indicator.

i thought we actually got a really diverse view of what was happening. >> i think so too. i think part of that was the issues facing us is the market right and it's forward looking and looking at a real economic slowdown or is what we're hearing okay so far. we've had a lot of representatives on both sides it's been an amazing week. thank you, becky. >> thank you, andrew. it's been a lot of fun. >> the one thing i do wonder when we get back -- and we have the weather that's going to hit the east coast, will we all see each other on monday. >> i don't know. i don't know what odds i'd place on that. maybe 50/50 shot we'll all get there. one of the things we always do is have fun in davos. >> this is true. >> a lot of work. >> i knew this was coming. this always happens every year. not every year, but, you know.

>> what else -- go ahead and throw it back at those guys. >> we should do this. >> it's been a great week it's been a remarkable people who put this together here and back home. >> can we take a shot? >> here and back home. >> thank you, everybody. that does it for us. that does it. hopefully we'll see you on monday. right now it's time for "squawk on the street." good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer. the dow back. comments by draghi in davos, also watching euros. japan up nearly 6 as some see the boj adding. the question is can oil hold 30. our roadmap this morning begins with two dow components