caterpillar, gm among the laggards. david: not everything is down. microsoft and proctor & gamble are up. they are really the exceptions to the rule in this market. we did it. it is an unhappy record we break today. the dow is down for the week 3%. for the day close to 2%. we're over 300 points to the downside, down 310 points right now. this is the worst that it has been all day. looks like we're trading at day's end, at day's low of the that is not good going into this weekend. we'll hear more from the from cme about the futures coming up in a moment. all the indexes are down of the we focus on the dow. we shouldn't. other indexes are down even further, with the worst, small and mid-sized caps which have done so well in 2013, really taking it hard today, down about 2 1/2%. we'll talk about all the markets all the time in this hour. a very busy day "after the bell" starts right now.

david: well the markets big downturn is not just dominating the conversation here, it is also making its way to the world economic forum in davos, switzerland. that is where we find our own liz claman rubbing elbows with people that make the markets move. let's go back to liz. liz: david, the sun has gone down on day three of the world economic forum. big names in the conference center. rock star bono. former british prime minister david cameron, al gore. some ceos don't make it to the panels because some come before our cameras. i had the opportunity to speak with brian moynihan ceo of bank of america and asked him about today's slide in the market and today's paired together. here is what he had to say. >> the market had a good start to the year and i think it

backed up a bit. fundamentals of u.s. market we think is very strong. consumer spending continues to grow. the debt deal helps unleash people's views that maybe the debate over fiscal situation is behind them. and that will, i think have ceos and business owners be moring a aggressive. we're very constructive. we will predict to grow 3% gdp last year. they raised that recently. that is not what we like to go. but more solid. liz: bank of america's stock is up over 40% year-over-year. brian moynihan, president and ceo of bank of america and biggest plans pour the bank this year. stay tuned. david: we will, liz. we'll come back to moynihan in just a second. we're settling at day's lows. it is worse than i last reported. dow jones industrials looks like settling 320 to the downside. all indexes, 318. 24 for the dow.

s&p well off the 1800 mark, off by 10 points. down 38 points. that is the 2% loss on s&p. nasdaq taking it even harder, 2.15% loss. russell 2000, small and mid-size caps almost 2 1/2% off. let's break it down with our all-star panel. we have yu-dee chang. scott wren with wells fargo with sectors he says you should overweight even with the downturn and chris gersch in the pits of the cme. chris, start with you. what are you hearing from traders? are we in the midst of a correction? >> we're in the midst of a correction as indicated by the volume behind me as an intense close. we're seeing s&p futures continue to sell off after the equity close in new york. like you said, 2 1/2% in the russell, that is up 40% last year. we're seeing russell index sell off later in the hour. david: chris is the word going

out from the floor from the brokage desks to clients saying hey, you have to take money off the table right now? >> exactly david. you hit on it right there. the brokers desk as seen, market-on-close orders, those brokers that are really saying you know, we should take a little off the table right now of the we had an imbalance on the sell side of over 1.5 billion shares on the nyse. you're seeing that carry over to the s&p pits behind me. excuse me it is so loud. a selloff correction definitely came through this week. david: before we go to yu-dee, i will stay with you one more time, chris, this question about what it is trading into. the losses are deeper into the trading day. does it looks like that in the futures? >> on futures side we're continuing to come up on the low of the session. we're on lows of the session on futures side. indicating a poor open again on monday. david: stay with us, chris. yu-dee, i want to go to you.

you've been our beacon of hope. you've been a bull all along. does this make you less of one? >> on intermediate term basis, i'm a bull. but on a short-term basis i feel there is more coming. if you look prior to the that, buyers turned reluctant of the we don't see the last year so-called buy on dips. we hit the so-called perfect storm where china started, we're off having weaker-than-expected manufacturing data. now get getting to latin america debt and currency concerns. followed by the fact next week, don't forget that there is rumor fomc may do further tapering. that is the worst of all worlds. david: that this continuing downturn in the markets one would think that would make them a little skittish to do that. but, scott wren, let me talk about industrials. it was industrials like boeing, like ge, like caterpillar, like 3m, they are the one that is

took it hardest today. does that make you reluctant because i know you were betting in industrials before. >> it absolutely does not, david and what we're telling our clients who have way too much cash and way underinvested in stocks is they need to be chomping at the bit here. i hope this does correct a little bit more. we could maybe see 1700 in the s&p 500 but that is a total opportunity to put sideline cash to work. i think industrials, technology, the consumer discretionary sector, all the probably, the worst-performing sectors in a pullback like this, you wish it happened a little bit slower. we had a big down day today. we're only 3% off the record high or some this is purely an opportunity for retail investors who are wait undervested to buy stocks. david: but scott, wouldn't you advise, at least a little weighting -- waiting period to see how this turns out, maybe another couple days? look if you think stocks will go to the upside and continue

through 2014 you will not be hurt too much if you wait three or four days, right? >> i think so, david. the way the market feels to me we'll definitely have a few more days downside but i don't think we'll have an extreme amount of downside. you mentioned the news out of china. you mentioned the em currencies. these are not trend that just started in the last couple weeks. emerging market currencies started losing value against the dollar in mid 2011. the stock markets are 44% behind, underperformed the s&p 500 over the last two years. none of this news is new and that is what investors need to realize. the fundamentals here in the states, we're not going to grow fast but we'll gee at dependable rate -- grow at dependable rate, 2 1/2%, low inflation. you need to buy stocks on the pullbacks. david: speaking of emerging markets, we have the former finance minister of argentina coming up. they had to devalue their currency yesterday. we'll talk to bill that.

chris, i want to go back to the floor of the cme. russell 2000, they were hit harder than any index today, the small and mid-size caps. will we see any continue wages on that. >> you will see risk off position as traders clearly indicated at close. the risk off, so smaller mid-cap companies are not longer as attractive. you will see a flow into higher dividend and to your last guest, if you believe there is a 1700 forecast on the s&p, you got to, tell your clients to wait. 1700, that is a 6% pullback. >> that is extreme. you have to leg in. david: hold on, go ahead, scott. >> not for retail investors. david: what that's scott? >> retail investors, retail investors can't get in and out on 100 point moves in the s&p 500 and can't wait for the exact bottom. they have to leg in. they have to leg out. you can not, if you're a retail investor who is way underinvested in stocks you can not sit there wait for the

absolute bottom and jump in with the full amount that you have on the sidelines. david: hold on, i want yu-dee in this on conversation. yu-dee, at least monday, don't you think considering we saw a lot of selling at the end of the day, according to chris we're seeing it in the futures, don't you think it is likely monday will be a bad day too? >> i think so. i think it will be couple bad days prior to the fomc i agree with chris, maybe long term eventually go back up. you never know that, nothing is guaranteed, right? nobody picked back in 2008 the market would drop 50%. so you still have to be careful with part of your portfolio. i actually agree you can't just go in there and catch a falling dagger. let it fall. let to start making bottom before you get in. i agree. overall basis i like the correction. i want to wait. a buying opportunity dbut not t. ii want to see stabilization before i get into it. david: scott, hard to find a

silver lining with what happened today. proctor & gamble was up. we should mention they had good earnings. people are selling things. apple selling a record number of i phones. do you go to the consumer stocks where people are buying what these companies are selling? >> david, if i thought we were going to have a 20% correction we would be in staples, health care, utilities. i don't think that is going to happen. we don't want to get defensive. we want to be on the offensive. those are not kind of stocks i would look to buy here. i am looking to buy ones hit hardest because they're most sensitive to the global economic situation. david: wow. yu-dee i'm interested that you're into chevron. why are you liking energy stocks just as china is beginning to slow down? doesn't that mean more of a hit for energy stocks. >> yeah i do, but don't forget i think some of that is already factored into the energy group. if you look at top 10 s&p groups, energy appears to be cheapest, believe it or not. extracting technology has been very efficient.

it is hurting energy stocks a little bit. by the same token i think that will start to give them a little bit more profit as far as profit margins is concerned. that's why i like the so buy the dips on energy stocks. david: chris what do you see happening worldwide? do you think market was too optimistic about world growth? that in fact they were betting on kind of growth we're not beginning to see? >> i think worldwide, what you saw is that the froth really taming down this last month. expectations across the world have been hitting the margins or slightly below. as far as we are concerned, on trading floor we're looking to have relative relationship trades. so on the energy side, we have the natural gas. us traders are trading with our gloves and our hats, very cold. it has been bought up these last two months. so short natural gas if you're looking to get into the energy sector and longer the crude contract, if we're at depression level you should use that as one

product. i wouldn't go long here with crude itself. i think natural gas cops at mean reversion trade here on the futures side. david: we don't know what will happen on monday. i can bet these three guys will do a lot of work over the weekend trying to prepare for what happens on monday. good discussion, guys. thank you very much. yu-dee chang, scott wren, have a great weekend. we appreciate it. i know you are working hard. chris, we'll check back with you when the s&p futures close. thank you. bank of america has had a stellar 2013 outperforming the broader market but with today's selloff and fed taper and more regulation what is ahead for the bank? liz sits down with ceo brian moynihan in davos, switzerland. if history is any indication of the future that the red you see on the screen today, that could mean it is time to run for cover. big-time. we'll tell you exactly why. you will want to stick around for this next. tell us what you think. is this the start of a bigger

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david: there wasn't one sector that did well today but transports were down 4%. that was more than twice what the down market was on the dow itself. whoops, over that shoulder. let's go to nicole petallides on the floor. why did transports do so much worse than the regular market? >> they were led lower by kansas city southern. ksu was a big loser on the transports. the transports are 20 members that comprise that index. truckers, shippers, airlines, railroads. they're very telling of the economy but sksu was the big laggard today. that was down 15.5% that was number one. what is interesting about the transports today, that all 20 members were lower. it shows you one of those days that were risk off. people were worried not only about the u.s. economy but global economies. we've been talking so much about china manufacturing being weaker this week earlier in the week. we talked about that. last but not least, the drop that we saw today here in the transports, we're seeing the

biggest drop since september of 2011. they're really very sell telling. however, we'll see what monday brings. this has been a tough week on wall street as you know, dave. they're not used to seeing big moves lately. we'll see whether or not this is a market that was in fact oversold. and whether or not people begin to pick and choose the names that may have been sold off a little too much today. so we'll see if there are going to be some nice low-hanging fruit for monday. we'll see if that comes to fruition. david: we might get indication what happened from the cme where we will go back to. you have great weekend. stay warm. >> thank you. david: chris gersch, what was happening in the final minutes of the trading of s&p? >> david, some going out here shaking with adrenaline from the selloff at the close. i can't speak here. selling was intensified. it got very, very intense down here on the selling side all the way through the close. so you know monday is not looking great at this point. david: well, i'm glad you didn't

say it is cable so i can say those words. you stopped yourself. >> yeah. david: thank you for that. but clear indication we'll start monday. who knows where we'll end monday but start monday to the downside big-time. talking triple digits? >> closing on the lows. we closed on the low, that last candle of one minute of trading we saw a huge selloff, two points coming off on futures side. coming down almost 43 points on the day. that is incredible for a futures contract. david: chris gersch, have a good weekend if you can stay warm. the fix also known as the fear gauge index surging 25%. this is the biggest one-day gain in nine months. last type was boston marathon bombing as the selloff on wall street continues. the dow is nearly 4% lower so far this year after posting its worst weekly performance in eight months. is all this a telltale sign for the rest of the year? joining me jeff hirsch, stock

traders almanac editor in chief. you gave me a copy of your most recent book, open to page 42 which is january dows. there is indication if tran's a lousy month so goes rest of the year. >> one of the sort of perfect indicators left. everything has an error here or there but down january record since 1950, every single down january, a 10% correction, flat year or bear market or new one or continuing one. maybe this is year that record gets broken but ominous pour tent for us. david: a lot of people say it is technical number things. doesn't really have any indication because this market is so unusual, so different from past markets to which you say? >> no, it is not that different. juiced by the fed. there is that put in there. we've seen seasonal behavior typically. november, december, january, up pretty well until now. we've got this january correction here which is a telltale sign. the reason being it is not just back to any period of time. it is since the 20th

amendment to the constitution was passed moving new congresses, presidential inaugurations states of union addresses all those sorts of things into the month of january. plus all street analysis and everyone involved in the market. investors retail institutions, making decisions, making predictions, making bets on what the market will do for a year. if it goes down in january, bad sign. usually a great month. david: political period that we're going into another political period, midterm elections in november. how does history tell us markets behave that time? >> nine of 16 bear markets bottomed since 1961 bottomed in midterms. worst for democratic administration. worst coming off big postelection years. wrangling, mudslinging kicks in first quarter march or so. you may get additional uncertainty and additional weight, nervousness added to the market. david: there are reasons. this isn't witchcraft or

numerology we're talking about. >> not at all. david: one of the reasons during a presidential year, people like to prime the pump. >> that's right. david: there was a lost priming, 2013. >> usually starts third year of presidential term. here we have the midterm year all representatives being up for office and fighting for election are battling with policy initiatives. already trouble with the obamacare situation. now the thing with chris christie in jersey, everything is heating up politically already. that just distracts from the street. takes everyone's mind off anything good going on in the market and heightens things that are negative. david: today we saw the russell 2000, of all indexes it was the worst performer down 2.5%. small versus large caps based in a year where januaryly does badly, any way to distinguish them. >> the january effect is small caps outperform small large caps in january. we've seen that start in mid-december. we sold some of our small cap

positions. we have free lunch strategy, picking up bargain stocks triple witching in december. we just got out of those. we had a bunch of big gains. david: we cut bait on that. david: they want me to quit. the best time to buy is the triple-witching friday before christmas? >> of the bargain stocks making new fifth lows. santa claus rally, january effect, any year? >> works any year. david: jeffrey hirsch, thank you very much. >> pleasure. david: today's market selloff was bad but it has been a lot worse for emerging markets particularly argentina which dehaveaudits currency -- devalued its currency yesterday and becoming crisis mode. we'll have the former prime minister about how far the crisis will spread. we'll hear from bank of america ceo brian moynihan who has been talking to liz in davos about how this market downturn will affect his bank and banks in general. all that is coming up right

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hey mom? i got the job! you got the job. welce aboard. i've got a job to do today. have a good first day at work, mom! narrator: donate to goodwill. help provide job training in your community. david: we have very interesting news. you don't always hear warren buffett and jamie dimon's name together but you are right now because warren buffett has come to the defense of jamie dimon in several different ways. he has put different scenarios out there. of course jamie dimon has been under the gun from a lot of people, probably most significantly the u.s. government which has been going after him partly because jamie dimon went after some of their regulations which he is not too crazy about but buffett said if he owned jpmorgan chase jamie dimon would be running it and making more money. that jamie dimon is quote, a huge plus to the american financial system.

maybe my emphasis on the word huge but it's a big word. fiber-optic alley buffett said he would hire jamie dimon at berkshire hathaway if he decides he wants to make more money. warren buffett, not always seeing eye-to-eye politically with jamie dimon who is little more conservative. warren buffett coming hyped jamie dimon 100% in support of what he is doing at jpmorgan chase. has to be good for jamie and the bank. what effect will debt ceiling have on banks in this country? liz claman had a chance to sit down with bank of america ceo and president brian moynihan what hopes washington will do with the upcoming debt debate. take a look. >> i hope they work through, they have a budget deal which is unusual. the debt ceiling goes on context not having a budget deal. it actually started, when i talk to our clients around the world, but especially u.s., started in '11 and thing got started and

downgrade. people got concerned because maybe they didn't understand something because at that time europe was pretty confusing. u.s. got confusing. asia got cons fusing and china particular. people sort of backed up. when you go to the u.s. and west coast and southwest you hear that is all understood now. you would say why would a million size company be that interested? they sell through the whole world. maybe it is different than a decade or two ago they might have sold to the u.s. they have to think about the world and as they think about the world they get worried about the world. that is how the system as we speak now. my hope we'll keep it out of the system in the u.s. at least. liz: let's hope certainly. we need some stability there. your stock has been a real performer over the last year, up over 40%. that has got to feel good. what is your priority this year in 2014 that differs from the one in 2013? >> no different priority. we have four things we work on the company. cost structure overall. core operating cost.

we brought it down through a program last couple years. we're through a lot of that. the idea you have to hold it down. revenues are tough in a modestly growing economy. second thing is, the cost structure of the mortgage business which is difficult because of delinquencies. we're getting through that and litigation costs that is two and three. real thing we focused on last couple years growing core business. we've been investing, cost structure. $3 billion plus in technology. thousands of plus salespeople around the world in u.s. and around the world and corporate investment bank and market business and u.s. and middle market and small business lending. so we're driving that growth. four priorities were costs overall, costs of mortgage, bad mortgage collection, litigation costs and ultimately grow the core business. if you said the emphasis this year is more on the last one that is what we're driving at. liz: are you lending more, markedly more than what you were doing last year? >> you have to, you have to look at it, when you go on the segment usually people are talking about that. they focus on small and medium

size businesses. originations over last three years have been growing 20%, 30% a year but the portfolio is shrinking largely because the runoff was high. we now stablized that. in last couple quarters we're seeing the portfolio stablize which is good. that means we got rid of some of credit risk we didn't want. importantly businesses are stronger and portfolios across the board particularly the business portfolios are strong. liz: how priority is the raise dividend. >> it is priority but we won't get in front of the process. we're in the middle of it and we'll let you know in march when it comes down. liz: are you more interested hearing broader issues that people like bill gates want to talk about. >> all of the above. i come here to learn with my team. we come here to learn from people. we learn along multiple dimensions. we talk to our competent force and talk to our -- competitors and clients and central bankers and heads of state you run into. we learn from them.

what is going on in the economy. what they're thinking about. nuanced seeing in person how they feel and speak. some of the things that come out, whether it is prime minister abe or other people sort of laying out agendas. that is very valuable. on the other hand you talk to clients in terms of our customers and they're here. what is fun you get into issues you don't touch every day. whether it is water. whether health care. what we did to announce the program yesterday with red to drive another round of awareness building in the u.s. our customers helping and driving money for aids. that makes the place unique. liz: you're unique, took over, it was a very tough job and certainly been an improvement we're happy to have you here to talk on fox business. >> thank you. liz: brian . nan, president and ceo of bank of america -- moynihan. that gives you clarity from a top banker. david: indeed it does. thank you, liz. emerging markets are getting hammered as investors grow more anxious about their ability to grow out of their troubles.

argentina's former economic minister joins us next to tell us where this is all going to be ending.

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up bargains or is there more worse to come? we have the former prime minister who was known for maintaining value of argentinian peso. he joins us from his home in argentina. domingo, thank you for coming in, i appreciate it. today the peso such a little bit from where it was. people were snapping up some bargains, right? >> yes. the problem is that the there is plenty of uncertainty. what are the rules of the game? the government is doing one thing one day and something completely different the next day. so there is a lot of uncertainty. i don't think that what is going on in argentina is related to what is going on in the rest of the world or in the rest of the emerging markets. this is very peculiar to the argentinian situation. david: you know how investors are. investors in america and europe

do tend to group emerging markets together. but if there was, as unique as argentina is, if there was another default in argentina like we had in 2002 for example, that would be likely to spread as kind after virus throughout emerging markets would it not? >> yes of course, but i think the big risk in the case of argentina is not another default but an acceleration of inflation and complication of the domestic problems. now of course there is also a risk of affecting the debt of argentina but i think that will happen only if there is a decision from the supreme court against argentina in the question of the holdouts. meanwhile the government here, related to monetary and fiscal policy the way exchange market

is working which nobody knows exactly, how the government will will proud in days of week. david: one thing that might spread, dough ming go -- domingo surrounded like a lost expositivers like brazil and chile, one country devalues and they make sure that their exports don't get hurt by that devaluation. is there a danger of that spreading currency war devaluations? >> no, i don't think what is going on in argentina will spread in the other countries because here the devaluation is related with domestic inflation, something that you don't have in brazil and in the other latin american countries. so, i think that, i insist what is going on in argentina is peculiar of argentina the way the government intervenes in the economy here in the last years.

and, right now fiscal deficit is very large. -- a lot of money to finance the deficit. people, it is not allowed to saving in foreign currencies but paying a very high inflationary tax with argentinian currency. so people are trying to defend its money by purchasing in the black market dollars and, the government considers that is illegal and it is speculation but the way people use it trying to protect their savings. david: domingo, we have got to make this the last question. that is exciting for some investors, particularly those who know how beautiful argentina is, when you have currency devaluation makes it much cheaper for people with dollars to buy things in argentina. i think real estate one example. the square foot you have in

buenos aires, goes $185 a square foot. in manhattan, about 10 times that, $1500 a square foot. if now is the time if i have a lot of dollars and cash to go to argentina and buy things? >> yes but, you know the difficulty is that sending dollars in the market is illegal here in argentina. that is why you don't see a sort of a, out of regulations of the markets no? and of course if people were able to sell legally a dollars right now in the so-called black market or other market i think there would be a huge amount of dollars coming into argentina because as you said, for example, real estate, that exchange rate is very cheap in

argentina but the problem is that you can not bring legally those capital to argentina. that is why i have been suggesting and i continue to suggest a, let's financial markets and the tourist market to open it as a free market but a legal market. without prohibiting, do not make it illegal operations in the market. david: right. >> and then part of the problem will be solved. david: domingo, we have to leave it like that. unlikely the current president will do mig like that there may be a change of administration where they will. former argentina economic finance minister. food to talk to you. >> bye, david. david: have a good summer. hard to believe after last year's route, gold may be back in fashion with some investors. our sandy smith is here to tell

us what is behind the turnaround and whether it will last in just a moment. liz in switzerland has details of another great guest that is coming up. liz? liz: home to local favorite with watches, with swiss arm knives and with pharmaceutical giant novartis. what is in the pipeline now? we have the ceo coming up in just a moment to tell you right here on fox business.

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saying on the street and barclay's is pouring cold water on the gold rally. fifth straight week of gains. they're saying this isn't going to last. this isn't the trend. they're big sellers of gold at these levels. face it average analyst estimate target for 2014 is 1200. many ases below there. goldman is at 1150. you were saying a couple folks talking about $1,000 an ounce. david: i heard as low as 800 dowel lars an ounce. >> why the bullish mow emmen tum here? we have a big fed meeting. physical demand is creeping up in form of gld, the largest gold etf. commerzbank, bullish on gold prices pointing to fact that momentum behind the gld is picking up. you know what happens you buy the gold etf. it takes physical gold off the market. david: true. >> if you get that sort of attention, look at one-week chart in gdl, that is physical gold coming off the market. that is one reason they're

saying the futures contract will have significant gains. david: quickly, natural gas, it is cold. people turning up the heat? >> we're all paying a lot more than a year ago, about 30% more. natural gas prices go up on cold forecast. david: are people thinking of something, whether it is gold or something else going into natural gas right now? >> people are leaving risky stoc market and looking to put money elsewhere. they're looking gold, bonds and guess what, other places like natural gas. it naturally getting a lot of dollar flow. david: that is the trade. sandy, great to see you. thank you. health is a big focus at the world economic forum. we'll hear from joe jimenez, ceo of swiss pharmaceutical giant novartis who is talking with liz. [ male announcer ] e new new york is open.

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david: stocks were hammered today including some big pharmaceutical names. over in davos swiss pharma giant novartis is taking center stage. that is where liz caught up with novartis ceo joe jimenez. liz: david, joe jimenez is a busy man traveling all over the world. why did he commit to be one of the chairman of the davos world

economic forum. this is a big-time commitment, joe. >> it is but i'm able to elevate the discussion around health this year. that is really what we're trying to do with my co-chairmanship. liz: what time of time commitment, be honest? what is required to do. >> we had a number of meetings before the forum where we talked about the agenda. we have a today a health care and economic summit i'm sharing. we have prime ministers coming, some health ministers and private industry we'll talk about how to improve health among societies around the world. liz: your company has done relatively well. the stock is up 20% year-over-year which is pretty much on par with pfizer and merck. what are you doing differently? >> at novartis we have a deep commitment to science and innovation and it is paying off. we had in the past year fda designations. they are reserved for

transformative new drugs. one is for a form of lung cancer. as you know there are not a lot of good lung cancer therapies. so that is one we're bringing to market very quickly. another is for a muscle degenerative disease. we develop ad antibody that helps promote muscle mass among the elderly which could potentially extend life. liz: i came from local news and i'm always looking for the worst things that happens. pandemics and epidemics do you worry about those? >> we do. as you know we have a vaccine business and we're watching very closely h 7n 9 emerging in china. there has not been human-to-human transmission but at the same time you don't know how a virus is going to mutate. the good news with our cell technology, we are able to very quickly develop a vaccine for any virus that emerges and move into production. we've seen that's a big benefit of the technology that we have. liz: shut it down as quickly as possible once it rears its head. you obviously are based in

europe and switzerland. europe emerging slowly from what has been just an awful recession. are people still breaking pills in half? which is classic behavior when times get tough. >> we expect the european growth rate to be anywhere from one to 2% this coming year. so obviously it is not robust growth but it is also reached i think a level of stability. i think three years ago here at the forum we were talking about crisis. i think that now we're talking about how do we accelerate economic growth? that's really what the focus is. liz: let me bring it back to the united states and the affordable care act. as it in fits and starts gets going, what is it meaning to your business right now? are you seeing meaningful impact? >> we're not seeing meaningful impact today. if you step back and think about the affordable care act and the objectives there are over 30 million americans that are not insured, that don't have health insurance. so the objective of making sure that we have universal health coverage in the u.s. is a very

good objective. now it is off to a little bit after slow start but we're still watching to see how those insurance rates start to pick up over time. we're not seeing an impact on our business to date but you know, who knows. liz: well, yes, you're here as a chair of wef and as a businessman. it is also important to talk about that i know you're in the quiet period but this has been out there for a while. there is word you might swap the pet care business or call it animal health business perhaps for merck's overthe counter drug business. those kinds of deals, are you thinking about them a lot? >> well if you look at our portfolio at novartis we have three big engines. we have the pharmaceutical business, the alcon eye care business and the generics business. those three businesses are probably 90% of the company and they're businesses of global scale. they're number one and number two in their segments and they have what i call the right to win. we then have three smaller businesses, the vaccine business, the animal health business and otc business.

they're good in their own right. they're very strong businesses but they don't yet have global scale. i want to build leading businesses at novartis. so we announced we were undergoing a strategic review. the first outcome of that review we announce the divestiture of our blood transfusion diagnostics business a few weeks ago. that deal has closed. but for other businesses we're thinking about ways to give them global scale. it could be unique structures. it, so nothing's off the table. liz: joe jimenez of novartis and co-chair of this year's world economic forum. david, i want to know you're ceo after swiss company but you don't ski. you're a championship swimmer in high school? >> yes i was. it is quite a sport. liz: didn't make it to the olympics in sochi, though right? still waiting for the call. >> still waiting. >> thanks very much, joe. >> thanks for having me. liz: david, back to you. david: just to recap what a disaster today was on all fronts, all indices way down

close to 2% on the dow jones. all other indices down below 2%. look at transports. 40% down. excuse me, 4% down on the transports. this is one of the worst days the transports has had in several years. by the way, this was a day of very heavy trading. volume hasn't been this high since december 20th. which was a triple-witching day. so there was conviction going into the sell today. industrials were also way down. the xli, which is the etf for does else industrials, was down significantly as well. of course the vix was way up. a lost business to cover. stay with fbn. melissa francis and money is next. on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is honored

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your bed to sleep better together. 48-month financing available through february 2 only at your local sleep mber store. find your sleep number setting and know better sleep. melissa: credit card breaches and hack attacks out of control. the fbi now sending warnings to retailers. it's a scary situation that is just getting worse. we've got a cybersecurity s.w.a.t. team here on how to take charge because even when they say it's not, it is always about money. melissa: huge selloff on wall street today. the dow down 311 points, biggest one-day drop in seven months. we're going to get to that shortly but first we wanted to focus on your wallet. the fbi is telling retailers to brace for a lot more cybersecurity theft. confidential repor