hi, everyone, welcome to "on the money." i'm becky quick at beautiful davos switzerland with the economic world. tom frooed 23457b of "the new york times" why plummeting oil prices aren't necessarily a good thing. one of the doctors on fighting cancer. bill gates on poverty. and if you looked your retirement savings lately, you're probably nervous. what you should do no matter what your age. "on the money" starts now. >> announcer: this is "on the money," your life, your future. now, becky quick. this morning, we're reporting from the small ski town of davos, switzerland,

which once a year plays a huge role on the global state where leaders in business, politics and money gather. but what exactly goes on at the meetings and how does it impact the world. that's our cover story. for 45 years the who's who of politics descend on the snow covered town of damp vos switzerland every january to find out how to improve the world. a look at how science and technology are transforming the society. also on the agenda, discussions on some of the biggest challenges affecting the world including terrorism and income equality. the meeting is by invitation only. this year, it includes 40 heads of 125i9s including david cameron. high profile business leaders like jamie dimon. and even movie stars like leonardo decap pro. davos including 250 settles although many are private and

the world economic forum sometimes criticized for the secrecy around the event. and since 2016 began, it's been a year unlike any other. three weeks of turmoil led by oil prices that continue to fall have sent the global markets into a slump with worries that economies are slowing down as well. what's behind the worst new year in recent money, in all time. thomas friedman is "the new york times" foreign affairs columnist. he's here with insight. thomas, great to see. you. >> great to be to here. >> you said when you come to dinner parties, it's not much fun nowadays. >> the thought was just occurring to me last week. what if, this isn't just your typical market episode, but what if this is really being propelled box a whole bunch of eras come in at the same time the era of 10% of the year chinese growth.

for last 30 years. the era of high oil prices between $80 and $100. since the mid-'90s, we've gotten used to that. the era of the american two-party system. the era of the european union. these are pillar, pillars geef yo politics and geo economics. if luke at all four, i don't want to exaggerate, they're not collapsing, but there's some cement falling off, you know, of these pillars and a true cracks appearing. where i'm wondering if that is what's rallying the market. what if all of this happens at the time when america isn't the dominant power it was. and the traditional adult that can fix all of these things. you know, might be another era. >> let's talk it about a couple of those things. $80 to $90 oil. that's a terrible thing for consumers. it seems like it should be

fantastic when you're looking at their or below for oil that could be particularly important to countries like net importers of oil, companies like the united states. >> and saying that $27 now, markets down 500 points. now, people will tell you it's not really reacting to the low price of oil. but the low price of oil say proxy for the global economy. >> you mentioned china's growth. it's not going to be 10%. not even 7% at this point. but it is the second largest economy in the world and we're still talking about 5%, 6% growth, potentially. >> whatever the real number is. the economy is not just shrinking. the economy is -- this is the cause and effect of enormous structural form. so the economy is in good shape. export by domestic demand. an economy that will not be sustained just on industries. but going to be depend more on the private sector. and that's going to involve.

and if you do get masses of unemployment here. people take to get streets, what then does that mean for the stability. >> when you start looking at that same sort of political instability. what's happening in the middle east. how thing, falling apart with the refugee crisis that's creating here in europe, and what that can mean politically, that's the type of thing that i don't have an answer for. >> we now have more refugees internal and dex turnal more than anytime. ed flood say little slower. when spring comes there's reason to believe there's going to be a tidal wave. the germans are already saying if you, greeks, and italians, don't take some of these, and stop just funneling them our way, we may put up a fence. then you have the european union that was built to be the perfect engine for the free flow of people, goods, services and ideas.

that doesn't work very well. the european union is the united states and europe. i live by the motto that the united states -- and we're talking about the great mobile engine for the promotion and subcitizen unanimous. and what happens if this amplifier, god forbid, blows up or just evil. at the time when we're going through this crisis. >> give me one reason for hope and optimism? >> because you cannot walk around here and meet young people here who are starting things. whether ngos or businesses, who don't tell you that it is just amazing how easy it is to be leveraging the cloud. that for month money, i started this ngo.

i started this business. i started, you know, this collaboration. today, it's between makers and breakers. and the truth is the breakers get a lot of attention. isis, we hear about them every day. there are so many more makers than breakers. thank god that's in our favor. >> i'm go together go to sleep tonight think about the makers. tom, great to see you. now, here's a look at what's making news as we head into a new week on "on the money." it was a wild week for money if you have any in the stock market. the holiday shortened week, the s&p 500 closed at its lowest level on since april 14th on wednesday. the market has a modest rally on thursday and kept rising on friday. the producer price index, the true measure of inflakes, fell in december, dropping by 0.1%. the federal reserve closely

watches inflation and wants to see a rate of about 2% in the economy. and gm is going where it hasn't gone before. the automaker is launching a car sharing service called maven in u.s. and germany. it will have a small complete in michigan, chicago and new york. and hopes to compete with zip car. if you've been watching wild swing ngts stock market and are worried about your retirement, you are not alone. everyone should have a plan in place to avoid the sudden drops and volt title. joining us with more on that is senior correspondent sharon epperson. >> sharon for those at home, what should we do? >> don't make any rash decisions. now is the time to look at what you have but not really to take action until you figure out what your goals are and what you need to do. you need to figure out what your risk tolerance is but your

capacity to take risk. how much risk should you take and must you take in order to meet your goals. for many people that means staying invested in stocks in some way or another. >> sharon, as you go along the time line for somebody who is a millennial or about to retire, what should you do? >> there's time for that money to grow and ride out the market with the ups and downs. but when you have generation x or show, in their 30s, 40s, you may think i have a lot of competing interest here. i'm trying to save for my child's college edition, how much i have in stocks, you still need to have growth. that means 70% of your investment portfolio should be in growth. the stock market. when you talk about somebody near retirement acres boomer, there you want to scale back a

little on the allocation but not too much. when you take a look at a balanced portfolio, 50% of that is in-n stocks, and the other 50% in mixed and short term investments. about 10% in short-term investments. here's the part that might surprise folks, were your in retirement, you should still have money in the stock market. in the early years. you're still going to need growth. the first years of retirement where you need cash to live on, that is certainly the case. what about the second decade of retirement. that could very well happen. you're going to have to have money in growth assets for that, in stocks, 20% or so of your portfolio if you're a retiree should be in the stock market. >> is there ever an appropriate time not to have money in the market? >> well if you need the money right away, in the next five years, it should not be in the stock market. if you don't have an emergency fund, put your money there, you

don't want to be racking up credit card debt if something happens. you want to make sure you have money for that rainy day. >> sharon, thank you very much. up next, we're "on the money." is the cure for cancer getting closer? in davos, yearses of science and technologies toward a breakthrough. later. fortune, fame and giving while dock to bill gates and bono.

welcome back to davos. with more than $30 billion in federal funding the national institutes of health is the world's leading medical research agency. the nih is working on scientific and technology breakthroughs to find causes for diseases around the globe. dr. francis collins is the

direct of the nih. thanks for being here. you were here with joe biden. talked about how here going to cure cancer. this is something that president obama said he wants to make sure we advance this. we've been hearing this in 1971 from president nixon. >> what's the deal here. for me as a scientist, i do believe we're at infliction point for cancer. let's be clear, cancer not one disease. it's hundreds of diseases. we are at a point where we have ideas about how to find answers, treatments and cures, compared to where we were a few years ago. maybe people are a little cynical because it has been a time since the war on cancer, but when it was declared we didn't have a clue what was going on. now we know what is going on inside the cancer cell. >> how much of this has given us

a new glimpse? >> that's a big part of it. cancer a disease of the d nome. that happened in dna in vulnerable places that caused the cell to grow that should have stopped. now, we're able to look at exactly what are the changes and which genes are involved in that person's cancer and how cow match that up with the strategy to stop that growth or even kill those cells altogether. that's a new concept. we didn't have the ability to do that until the technology came along and made that possible. >> that's a real reason for thinking we're there, that we're on the cusp. >> that's part of it. the other part is the ability to activate the immune system. we're probably all of us fighting off little cancers every day that we never know about that our immune system is looking for. sometimes, the cancer cells get clever and they hide behind various smoke screens and the immune system didn't see it.

we can teach the immune cells to, hey, look over there. >> take down the camouflage. >> particularly with melanoma, with leukemia, with lymphoma, we're seeing dramatic progress there. we have to figure out how does that work for pancreatic, and brain and breast and colon, all of those other areas once the cancer spreads we don't have answers. we can get there but it's going to take a big push. >> what about research on other chronic diseases like alzheimer's and diabetes? >> we're making progress on those fronts. i must say it's a big shot in the arm with nih and all that we support that congress came through with an increase in the budget because we've been really squeezed losing ground for the last ten years. >> extra $10 billion. >> an extra $10 billion is going to be enormously helpful. with alzheimer's congress said

let's push hard and gave us an some $350 million for that disease. we are finally seeing benefits from clinical trials for alzheimer's disease. as long as you start early. you don't want to wait until somebody has far advanced symptoms and lost memory. you want to find people at high risk maybe before they've shown any symptotimymptoms and then i. >> intervene meaning stop it? >> we don't know this. with a few early trials, a few months since we learned this, not reverse it. but that is the goal. i think with a lot of trials and a lot of sense of pessimism, that field is turning around. >> dr. collins, thank you for being here. >> thank you for everything you do to spread the word. up next, we're "on the money" we'll have bill gates and

bono about the future of their charities and making the world a better place. >> the united states has been leading the greatest intervention in the history of medicine.

welcome back to davos. one is a rock star. the other, the richest man in the world. what they have in common is fighting poverty across the globe. we spoke to bono and bill gates in davos as part of our collaboration with facebook

called "face-to-face." >> the biggest thing that now built, also got red in part of it. and that is telling the story about the progress, our people meeting their commitments. making sure we get people out to see the work, first hand, which is really a powerful thing. >> we have this organization, one, which is sort of unify fied poverty. for some people, it's compliesk indicated putting on your boots. we invented red as a gateway mark. people were upset with what they're seeing with the aids crisis. the united states is now leading the greatest intervention in the history of medicine. it's remarkable. i don't think americans just what you've done. and it took not just the left, the left and the right working together. but it also took corporate

america. and again, as with rock 'n' roll people to get snippy about corporate america is the volatility there. it wasn't just money. real money, saved, but the actual secret, or the really agenda that's going on was actually all of the advertising. >> let's talk about some of what's been the overhang here in davos. financial markets in turmoil. a lot of chaos in the world in the middle east. the refugee crisis here in europe, too. it's made for a pretty dower group of people here. but bill, last year, in your annual letter, you wrote about how we are making massive progress in the world. and we're really taking on inequity. and these are incredibly hopeful times. how do you spread that optimism with this sort of a backdrop? >> overall, we are making

progress. the innovation that's coming along, whether new vaccines or connecting up farmers with money, giving them better advice. all of these places, africa india, all of these places with poor people, and lifting their lives up. yes, there's some acute problems. syria has not been solved. think of the problems, like low cost oil, for most countries that's a blessing. for nigeria, that's a huge challenge. they've got a big budget hole. there will be a big adjustment there. but it's not like a tragedy that things are less expensive than they've been in the past. >> the paris attacks this year, u2 had to cancel a couple events there. and you reached out to the band playing at the bataclan.

how has that changed your goals? >> we were rehearsing a mile from the first explosion. all of the people were safe. the band was not safe. they were stuck. it brought, of course, up the nature of terrorism but with the local climate, we're now going local. but you'll never get used to that. but you've also got to used to the defiance, the joyful feeling in paris. i just thought with that image, you could defend europe, and that sense of being european came if you bottle that that's not many that can't fix it. >> gentlemen, i want to say thank you to both of you. we appreciate your time and everything that you're working on. up next on "on the money." a look at the news on the week ahead. and as we go to break, take a look at how the stock market ended the week.

for more on our show and our guests, you can go to our website, otm.cnbc.com. earn season peaks with apple and microsoft reporting.

also mcdonald's and visa. on tuesday, the meeting. and thursday marks 31 years since we are the world was recorded. the charity single raised $63 million to fight famine in africa. on friday, we'll get the first read on gross domestic product for the fourth quarter of 2015. that's the the show for today. i'm becky quick. thank you so much for joining me. next week -- move up to business class. we'll show you a new way to get an upgrade on your business flight without the sky high fees. each week, keep it right here, we're "on the money." have a great one and i'll see you next weekend. sure, tv has evolved over the years.

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