>> united health came out with quarterly profit numbers. it hit a new high and brought the group along with it. [closing bell ringing] david: on a seesaw day, the dow went up and down through the middle line 60 times. the bells are ringing on wall street. looks like a feign on all but russell 2000. small and meadup sized stocks down about a third of a percentage point. there are individual stories extraordinary here, particularly on netflix up 11%. much "after the bell" starts right now. david: we have a jam-packed show for you including an interview with former fold man saks chairman -- goldman sachs chairman bob hormats, former vice chairman of goldman. first to liz at davos. liz? liz: sun begins to set on day

one in the world economic forum, things are heatings up in davos. much anticipation about tomorrow's european central bank meeting. what form will the stimulus package take? we have the prime minister of e.u. finland. lots of discussion about that and very revealing in his feeling about remaining in the european union. plus, the russians are coming. you know what? they're already here. we have andrey cost ten, he runs russia second largest bank. he is on a panel with ukrainians. talk about businessmen of both nations versus politicians. it is revealing interview. we'll see you throughout the hour here on "after the bell." send it back to you in new york. david: thank you, liz. we'll break down today's market johnson. craig johnson says the global market has room to work, room to grow. he will tell us how to play in this market.

jnp ask you securities president has three picks to add to your portfolio. todd horowitz in the pits of cme. if it is wednesday with todd it has to end up. it was a seesaw session. there is very interesting thing happening with interest rates, todd. comment on them. have rates on the 10-year are now below the average dividend that stocks on the s&p offer. some people see that as great news for the stock market. how do you see it? >> well, i mean, you could look at it as great news for the stock market because you have to continue to chase the yield in the stock market. so what they're doing they're forcing you to go into the market but what's really happening is the yield curve is flattening and we see the 30-year continue to make new low after new low. these are all-time low in the 30-year rates. so as the yield curve flattens that is not a real bullish scenario for the economy. that is a much bigger sign of fear driving this economy. so money is flowing into the bond markets saying, we're

afraid and we have no place else to go. major world economies, china, everybody else, they're pouring into our 10-year, our 10-year, believe it or not at 1.8, is highest yield of any major economy in the world. >> incredible. >> money is flowing here. david: under 2% would be a high interest rate. craig, we'll talk to bob hormats in a minute about the effect of the strong dollar on these very big large corporations with a lot of business overseas. "the wall street journal" had an interesting piece today about how johnson & johnson, proctor & gamble, even avon getting hurt by this. isn't that, doesn't that auger poorly for the big large cap stocks that have so much business overseas? >> well, david, that is interesting question, because when we've gone back with our technical team and looked at historically periods of rising dollars, big trend reverials in the index, we've seen the s&p 500 appreciate along with that what we think is ultimately

happening is, money coming in from overseas markets, attracted to strong dividends in the u.s., solid execution among companies, that money is coming in overpowering any sort of earnings headwind you're getting. you look back at time over time in our monthly publications, you see in that environment, stronger dollar, large cap stocks work and those are market cap-weighted indices and the bull market continues to move. david: i got to tell you, one stock being hurt a little bit in their profits overseas is american express. they have a lot of business over there. adam shapiro is with us with the numbers. they have just come out with their quarterly reports. how do the numbers look, adam? >> not hurting in the fourth quarter, dave, they were up. earnings per share up 15% to $1.39. the street was expecting 1.38 dal. revenue, are you ready for this. the street was expecting 8.53 billion. not hurting in the fourth quarter for agxp. david: let's get after-hours

numbers up. mark, what do you think about american express beating on both the top and bottom line? >> financials had a tough time. that will be seen as real interesting bellwether. that was a great obviously and they are not being hurt as you said earlier about the foreign currency translation. i think one of the things you mentioned which is important to see, which is we're, seen as a state of calm in a world that is really not very calm and i think that is going to be a continued theme. people will stop focusing on the macro and will start focusing on the micro, like companies like american express, like united health. if we do that we'll see new highs in our market soon. david: mark, the american express numbers, bay by the way you're looking after-hours, up a nice healthy pace, up about a buck after-hours. currency issue, focus on for a second, we talked about that with craig, are they beginning to weigh on the big cap stocks? >> they will have to weigh on the big cap stocks. it happened very rapidly in the fourth quarter. so getting used to where the

dollar is trading now versus foreign currens is something big companies are focused on but again i think this will be seen as more of a positive for the overall u.s. equity market. again the u.s. market is the healthiest globally of all the major markets. david: absolutely. >> 1.75 10-year we've been you can talking about, like you said, it will be a far better yield than the .6 we see in germany and less than that in japan. >> i understand, we're the best in the business right now as we speak. but here's what bothers me, todd. this is a concern a lot of people have. we might get into, something like a currency devaluation war, if our currency continues to appreciate in value compared to all the other currencies around, the fed might say, gee, our exporters are getting hurt, maybe we'll hold off the rate hike for another year. we'll try to get our currency down a little bit. then you get into currency devaluation war. we've seen that scenario work out historically in the past and

the ending is not a good one. >> it is never a good endings. go back to ben bernanke, they tried to devalue the dollar. the niche part of the qe program was to push the dollar down. what happened because the world economies are failing now people run to three things. the u.s. treasury bond, u.s. dollar and u.s. marine corps. when things are in trouble everyone comes here. no matter what the fed tries with the dollar as long as the world economy is struggling they will buy u.s. dollars. everybody is afraid of their own collapsing economy. we're not talking about what is possibly going on this nigeria or venezuela yet. david: we had extraordinarilily good consumer confidence numbers. that is great news. what is not so great the jobs report, we saw wages fell down a bit. on one hand consumers are confident i think primarily because oil or gasoline has gone down. that puts more money in their

pocket. what happens when that effect wears off and people are stuck with low wages no. >> you have certainly tax relief happening at pump with oil prices coming down. interest rates are still low. this is a good environment from the consumer. from our perspective we're overweight consumer cyclical stocks right now. homebuilders are good. stocks like lennar look constructive. restaurant stocks look attractive. buffalo wild wings still in a nice uptrend and still with more room to go. we like what wee seen. with 2/3 of economy driven by consumer consumption and getting great relief at the pump, this is big driver for the economy a lot of people are dismissing at this point in time. david: thank you very much. craig johnson, mark lehman, and my buddy todd horowitz, thank you all. even before the president spoke bass night we knew about his plan to raise another $350 billion over the next 10 years in taxes but would that strain exporters from a stronger

dollar and stifle the economy just as the economy is beginning to grow stronger? joining me kissinger vice chairman and former undersecretary of state for environmental affairs and former vice-chairman chairman goldman sachs, bob who are vats. >> nice to see you david. david: increase in cap gains tax, inheritance tax. even has a plan to tax college savings plans which would cut into the middle class. is now the time to be raising taxes? >> i don't think we have to think too much about this in terms of it actually being implemented because in this congress it will not be simply minted. david: why did he say it at all? >> i think he was trying to say he is focused on the middle class and came up with ideas for using money, for instance, for community colleges or enabling -- david: shouldn't he betfocused on something that can actually pass? >> here's the problem. you lay out markers but markers don't necessarily provide

benefits for the middle classes that he wants to help. so what you need to do, if you want to get these things done is to promote some kind of practical compromise that enables him to get some of the things he wants and republicans some of the things they want because they do control congress. it is one thing to put ideas out. it is another thing to have them actually implemented. if he wants to help the middle classes which he says is his priority, then you have to figure out a practical way of doing it. which means each side has to find something it wants that the other side is willing to buy off on and make incremental progress. he will not get all he wants. david: the president may not say this because he doesn't want to be seen as appealing just to the corporate side. but jack lew, treasury secretary, was talking about corporate tax deals and getting this rate which is the highest in the industrial world down a little bit. do you think we'll have any progress there? >> i think there is support among the republicans for doing that and among some democrats.

david: jack lew sounded like he was supportive of it? >> he is probably having to do that in context of a bigger package. the other thing is, a lot of small businesses which are really the job creators in this country, they don't pay the corporate tax. they pay the individual tax. if you want to find a way of creating jobs and help small and medium-sized enterprises you have to deal with the corporate tax and other aspects of tax code which affect -- david: which is what simpson-bowles did three years ago. we should have taken their plan as a blueprint. >> you need a broader debate that has corporate tax and -- david: personal income tax rates come down. >> personal income taxes or taxes or anything else that can help small and medium-sized enterprises because they create a lot of jobs but they're finding in many cases difficult to get capital and they're finding regulations to be very difficult to deal with in some cases. david: i was reaching for my "wall street journal" which is never far away. had a great piece in the front page about the strong dollar.

we talked about it with our big companies. alcoa. avon products. is this a potential is roadblock in the economic recovery? >> i don't think it should be a major roadblock because we're getting so many strong impulses from lower oil prices and gasoline prices. it's a huge tax cut. benefit consumers across the board. david: not just for consumers but companies to transport stuff. >> exactly. logistics companies. if you're walmart, moving good around, if you're a benefit. if you're an airline use as lot of fuel, you're getting a benefit. if you're dupont or dow, you're getting a lot of benefit. i think in general it's a big tax cut. anyone running an energy intensive company is going to benefit as well. but on other side. it makes it more expensive for

foreigners to buy american exported products from the united states and a lot of american companies export and if you're making products abroad, say in europe, with euro going down, dollar going up, the translation effect, moving money back into dollars and books kept in dollars, it has negative effect. david: very quickly, getting a rap. have to ask you about the fed. would it be a mistake because of fed's concern for stronger dollar, and exports. could would it be a mistake to hold off a rate hike to devalue the dollar? >> traditionally the fed doesn't target the dollar. i don't think the fed will target the dollar this time of the fed will make the decision based on what it think best is for the american economy. there is very weak labor market out there. i don't expect the fed to raise rates anytime soon given the slack in the labor market. david: they won't purposely try to devalue the dollar to keep rates too low? >> the ned never tried purposely

to lower the dollar. one of your commenters said the bernanke tried to do that. that is not what the fed targets. european central bank, on the other hand, one objective is to push the euro down but the federal reserve doesn't do that traditionally. david: we'll have words on that and have a debate on that. >> some its have like to do that. the fed never indicated that as one of the top objectives. maybe a subsidiary objective but certainly not a major objective of the fed. david: bob hormats, thanks for coming in. strong dollar can hurt profits but are there names that can hold up and even thrive with a strong greenback? we'll discuss that with our panel. netflix soaring with subscriber growth but will that hurt them ahead? liz with more from the world economic forum. liz? liz: david, the russians are coming right to fox business cameras in switzerland. coming up the chairman and

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♪ liz: if there is one country represented here at the world economic forum in davos, switzerland that grabbed most headlines last year it is russia. with tensions with ukraine and very low oil prices affecting russia's economy, we need to speak with a russian and we've got one right here. he is andrey kostin. the chairman and president of btv group, russia's second largest bank. welcome once again. this is our sixth year together in davos. >> right. liz: i heard you're doing a panel with ukraine? >> yes, we will. liz: what is that going to be like? >> well, we had another meeting in geneva in august. we met with ukrainian businessman. together with americans and

europeans and we discussed between the businessmen, what we would do together in order to help our politicians, to build a peaceful process. liz: you're pretty close with vladmir putin. the russian state owns 60% of bvt. canned can't you say, look, it is good for business that these countries get along? >> we might have a different opinion what is happening in ukraine. i think that the global economy, is suffering from political tension now. we are all suffering from this, all the business all around the world and just want business to continue, want for the cooperation and we're discussing here. i think, ukrainian businessmen are suffering from much more than anybody else. even more than russians. i think what we're discussing here. liz: how is that possible though? we've got western sanctions against russian companies like

yours. already you have to receive part after russian government bailout, is that correct? >> yes, we do, but, unfortunately we have sanctions and, but, as you quite correctly pointed out, we, russian government provided quite big support for russian banking sector. it has changed our strategy, it changed, our environment, but we, we feel quite strong now amounts we have quite big support for our capital base and liquidity and we continue our business. liz: you have $3 billion exposure to ukraine. overall i'm sure europe is a big part of your business. wouldn't it be better for everybody involved if perhaps the aggression on russia's side. i know i'm pushing you here, would be tamped back a little bit? >> again, we have quite a different opinion. we thought it was western involvement and coup d'etat first to fall and the

consequences which led to the situation. we think that politicians should talk, we think mr. obama meet with mr. putin and discuss these things and mr. pour schenck coand settle this. we are very much interested in business as usual. we very much having relationship with our colleagues in america and europe and we think that the global economic growth should continue. liz: as we know business people are often more rational than politicians. >> absolutely. liz: of course. how is your business being affected by western sanctions? >> international markets are closed for us and we have to rely more and more on russian central bank and russian government which is bad. privatization process was stopped. that of course changed the whole concept of our bank nowadays. that's pity but on the other

hand we're coming to the world, we don't want to be isolated. we still consider ourselves as a part of international community and would like to conduct business with our partners. i think they're invested in working with us. liz: well, this is your 20th year in davos. >> that's true. liz: i know you would probably be inclined to say vladmir putin to this next question. besides vladmir putin which world leader do you admire most right now? >> you know, president -- liz: not around anymore. i said living not dead. we all admire president roosevelt. we'll keep an eye on vtb, russia's second largest bank. david, interesting stuff when it comes from politicians to businessmen? david: hard to find support es of vladmir putin anywhere in the world. we have big headlines from

ebay. their earnings report is out. adam, what are the details? >> we'll give you numbers and announce layoffs. it is a beat. $1.39. street expecting $1.38. excuse me, it was 90 cents earnings per share. of the street was expecting 89 cents. revenue was 4.92 billion. street was expecting 4.93 billion. first quarter revenue outlook of 4.35 to 4.45 billion. midpoint was 4.4 billion. that was below thompson estimate of 4.7 billion. here is something at the bottom of the press release getting a lot of attention. they have announced they are going, during the first quarter, to reduce the workforce globally by approximately 2400 positions, 2400 positions which represents about 7% of total workforce across ebay. recapping, 90 cents earnings per share. street was expecting 89 cents. revenue 4.92 billion. street was expecting

4.93 billion. laying off 7% of the workforce. david: layoffs, big layoffs at yahoo! president can't keep his word when it comes to taxes. did a complete 180 on a 2011 plan of his to cut tax rates. which president should we believe? a bottom may be forming in oil as it rallies 2%. could this mean a rise in the keystone pipeline on capitol hill? does this increase the chances of getting passed? we'll discuss that with our panel? we'll head back to the world economic forum for a rare interview with the prime minister of finland who blames apple for some of finland's economic problems. that's coming up. ♪

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2011, to reduce tax rates. that's right, the president actually called for that. so which president should we believe? let's bring in our panel. we have larry shover, sfg alternative chief investment officer. he is here in new york today. michael pinto. pinto portfolio strategies and president and our own adam shapiro. michael, let me read to you, this is a 2011 plan that the president had to rejigger our tax program. here is said is number one component of the plan. the tax system should be simplified and work for all americans with lower individual and corporate tax rates and fewer brackets. that is the president's formula for taxes. >> i'm shocked. where is that guy go? is this the same guy that says i could keep my health insurances plan? keep deductions and race taxes on everybody ability to create a

job. giving it to people who can't afford college and raise capital-gains taxes on people who work very hard and pay for national baby significant services. >> exactly, from cradle to gray. we used to joke about the europeans. larry, if republicans were smart, franks lit republican establishment, i have not seen them be clever in dealing with this president at all, if they were smart they would lay the president's 2011 and tax simply fiscal plan on the table. mr. president, we're with you. this is your plan, lower tax rates, get rid of deductions. could they do that? >> david, i don't think they could do that whatsoever. it would be a novel idea. i don't know if they're clever enough to actually do something like that, but something absolutely that needs to be done to make things simple, to hold to his promise, i'm not sure what he will do with tax rates, but cut loopholes. david: this is what he wants to do. hold on a second. this is what he wants to do right now. raise tax rates on capital gains

from 23.8, to 28%. that is double when he came into office. it was 15% when he came into office. >> that does not work. people that own stock take a lot of risk. it's a trickle-down effect to a good stock market. david: adam, it works with government revenues. he is raking it in. wall street doing great because of low tax rates, excuse me because of low interest rates. tax rates increase so government is getting a lot more money. >> they're getting a lot more money with the current tax rates. the trouble the president will have, all the people promised 529 for your kid for college and you were promised when there would not be a tax until you withdrew the money. by the way we're going to tax you. what kind of credibility if we start raising taxes after making promises like that for people with roth retirement accounts? how do we know 10 years from now, 20 years from now, we lied.

we'll tax you on that. that would be bad precedent. david: makes it hard to plan for the future. netflix soaring 17% today after reporting bigger earnings and the subscriber base grew quite a bit. competition is increasing. the government's case to regulate the internet is losing ground. will the stock come back down-to-earth? adam, what do you think? even overstock.com, our friend at overstock said they will get into the streaming business. you have more competition. the government might make it more expensive for netflix to do business on the net. what do you think? >> i do think that netflix's stock will probably come down as competition goes in but remember they have got, numbers we saw of the users in north america, 58 million and growing? david: yes. >> they are, they're still very big. so you can't count them out. the question is net neutrality and how that is going to play. we don't have time for a net neutrality discussion but netflix, they will be chomping at this. david: larry, we banned the phrase net neutrality. all it means that the government is getting more involved in

regulating the internet but that argument is losing ground in congress. looks like the president might not get his way. what that means, it will cost netflix more money to stream its stuff online. that will cut into its profits. so is the stock price getting ahead where it belongs right now? >> it could be. that's a really good point. they're pretty far ahead of the competition. not that the competition is not on their tail but they're far enough the price point is good as long as they continue to keep that price point as well as it is, they will continue to gain four million subscribers every quarter. david: michael, i don't know, a 60 buck pop in the stock in one day? is it worth it? >> this is 1999. listen i have to congrat myself. i didn't buy blockbuster video all those years. the same fate is in store for netflix? what are the barrier to entries to streaming video? margins will compress. do not buy netflix stock.

you will get hurt. david: you heard it here first. during the state of the union the president called on congress to focus on infrastructure projects over the keystone pipeline but which one is actually better for the economy? we'll debate that coming right up. ♪

david: the president last night belittling the idea of a keystone pipeline by saying his massive government spending projects are more important. take a listen. >> 21st century businesses need 21st century infrastructure. modern ports, stronger bridges, faster trains, and fastest internet. democrats and republicans used to agree on this. so let's set our sights higher than a single oil pipeline. david: puny little pipeline. that is what the president said. which is better for the economy? all these infrastructure projects by the government or private pipeline? we're back with larry shover, michael pento and adam shapiro. if you look at the numbers, larry, and you see hundreds of billions of dollars spent by the government on these infrastructure projects and maybe couple of billion dollars on a pipeline the looks like the infrastructure projects are more important. >> you know what? infrastructure is important. we know that right now nothing is more important than jobs. also we need to have security.

energy independence. we're a long way off from that. and anything we can do to provide both of those things, much more important than infrastructure right now. david: michael, what do you think is more important, government projects or private pipelines? >> you don't have to be clairvoyant. i was listening to president obama speak. he has no interest in approving the keystone pipeline. it is arrogance and hubris of mr. obama and government. he will probably want to appoint a infrastructure czar to decide where the trains should go and how fast it can go because they know better than the private market. hubris and arrogance. >> but, adam, we had all the infrastructure projects. we've been there before. >> train to nowhere in california. david: as soon as the president came in office, put out stimulus program. both houses of congress. we spent, a lot of it was on tax cuts but significant chunk, about half, i guess about half a trillion dollars went to infrastructure projects. they didn't help the economy that much. >> here's the thing, we need

infrastructure and need time purchase our roadways and deal with that. with the keystone pipeline and it is very simple. you can use the government's own argument against the government's position not to do this which is one, it would create, two years, jobs would go away, it would create 42,000 jobs. how cruel is it, how arrogant to say only 42,000 jobs. that is 42,000 people who will be working for two years. the other issue on environmental side, the government's own report said that building keystone would have no impact whatsoever on climate change, because this oil will be extracted anyway and will be shipped, if not through keystone, via rail. so why would you not do this and put people to work? 42,000 people, according to the u.s. government for two years. it is incredibly cruel and arrogant to say no to that. david: last word on the subject. thank you very much. larry shover, michael pento, adam shapiro, good stuff, appreciate it. despite a rally today homebuilders have come up short despite extremely low interest

rates so what is feeping investors away? we're heading back to liz claman in snowy davos, switzerland. what is coming up? liz: finland may seem remote to some of our viewers but it matters. not only is it a member of the european union but share as huge border with russia. coming up the prime minister of finland joining me in a fox business conversation about how solid his support is to stay in the e.u. ♪

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liz: there are 45 plus world leaders here in attendance at the world economic forum but europeans are in high demand considering that the eurozone growth or lack thereof is driving much of the sentiment. we're joined by e.u. member finland, prime minister alexander stubb. thank you for being here. >> nice to be here. liz: the news today, there is now a possible number put on what the e-cb will be announcing as far as stimulus, from 500 billion to maybe even 600 billion euros. from your perspective as eurozone's 8th largest country, is that enough to stimulate what is a flagging

economy? >> well as a prime minister of a eurozone country i'm always careful with my comments on the european central bank because that is the prerogative of the european central bank. i think mario draghi and his team are doing a good job throughout the crisis. we'll see what comes out of the central bank tomorrow and we'll take it from there. this is only one small part of a larger package we're dealing with. liz: how is finland handling what is going on? >> some of it we're handling pretty well but some of it not so well. we're happy to be out of the euro crisis but basically what happened it's a triple crisis. one, financial crisis led to debt crisis and now we're in a growth crisis. everyone in europe is trying to come up with ways to get growth going. i personally think growth doesn't come from the public sector, it comes from the private sector. liz: we're in agreement at fox business. definitely businesses stimulate growth but how do you get businesses that look behind the

headlines that scream we need stimulus in the eurozone? what is mario draghi going to do? >> you have to understand basically we've done the packages so the euro is not in danger. greek elections coming up sunday. that will have potential stimulus effect. there are packages. president of the european commission put down 315 billion euro bring in private investment fund. now the ecb is doing its bit as well but at the end of the day it is about fundamentals. it's about does european industry work? how good are we, for instance in high-tech? we need a little bit of luck and a little bit of timing and i think we'll get out of the pits but for the foreseeable future we're looking at fairly low growth. liz: if you had to say what worries you more is the eurozone economy or suddenly more aggressive neighbor russia? >> they're different kind of worries. from a security, legal perspective we're not worried in finland. we're more worried about the

economic perspectives in russia because we're looking at a retraction of the economy, 4 to 5%. 10% inflation in russia. a ruble which has spun out of control and on top of that, an oil price which sits i guess, yesterday at 57, $56 a barrel, even less, 46, 47. so if the russian economy is so oil based that is a problem. so we're looking at both side. what is going on in russia, economically and security. liz: almost if vladmir putin is ignoring that and has his military might and, suddenly could really be a problem to nearby nations? >> i would not say that the finnish boarder with russia which is 1300 kilometers and more than any other european borders combinedded is a problem. liz: have you had meetings though anticipating that? >> we talk, people forget, that foreign policy is diplomatic relations. we talk to each other.

we talk to prime ministers, presidents and foreign ministers. it's normal cordial relations in a difficult and tight situation. we all want things to improve but we simply can not approve what that did in eastern ukraine or the crimea peninsula. liz: you famously recently blamed apple for some of the problems in finland. >> i didn't famously, probably misquoted but go ahead. liz: nokia is obviously now in real straits. it is no not the big player that it used to be. needless to say your forestry business, which is huge in finland, you said ipad may have eliminated that. every bank in america says do you want to go paperless. isn't that the way of the future? how does finland and its forestry business handle that as far as the economic interests is concerned? >> basically i would say quite well. we had go cornerstones industry one a nokia and biggest mobile phone makers then the iphone

came around. nokia is not there as mobile phone or smartphone but there as one of the biggest networks in the world. so a new nokia has emerged. i a little bit of destruction and reemerges and they're actually quite well. the second industrial platform was the forest, paper, pulp industry. that is moving into biomass and biofuels. we're coming out of economic recession i hope within the next few months, years. liz: thank you so much. wonderful to have you. alexander stu is the prime minister of finland. an e.u. member waiting to see what happens tomorrow from the ecb. david, back to you. david: the guy looks about 25 years old. investors await details for the european central bank plan which comes out tomorrow. how do you prepare for the possible contingencies. we have details on number one thing to watch when we come back home sales and rates are not keeping up with the market.

we might know why. jeff? >> everybody looks young to me, david. i will take you inside of the one of the 728,000 housing starts this past year. december was a big year. back in just a moment. >> hi, everyone, i'm gerri willis. coming up on my show at the top of the hour, 529 college savings plans among the many new targets of the white house. we'll break down how much more you will be spending. that is one of the big stories coming up on "the willis report" in just a few minutes. go. here's your invoice, ladies. a few stops later, and it looks like big ollie is on the mend. it might not seem that glamorous having an old pickup truck for an office... or filling your days looking down the south end of a heifer, but...i wouldn't have it any other way. look at that, i had my best month ever. and earned a shiny new office upgrade. i run on quickbooks. that's how i own it.

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david: well, housing starts jumped in december hitting their highest level in nearly seven years but despite the stronger report some home building projects remain stalled nationwide. our own jeff flock is joining us live from twin lakes, wisconsin. jeff? >> it was kind of a schizophrenic year, i'll tell you, when you look at the numbers and we can put them up there, david. we're inside of a building project indeed in wisconsin here. kind of a cool house but some months, you know, a big jump. some not so much. bob tells me, you're putting this on the market today? >> today we announced we'll have this high performance house on the market. there is not many like it. so we invite people to come out to take a look. >> it is kind of a green house. i'll tell you, we've been following this project for a while, david. if you take a look, we have some time lapse that shows you the building project, this is made with structurally insulated

panels. it is latest, coolest way to do things. this here is kind of, i don't know what you call that, bob, but a combination of materials that makes it very easy and quick for houses to go up. the question is, what does this market going to do? >> well i think the market is strong. i should say getting stronger. we just open everything kind of moves in the direction and we don't see interest rates moving in any, in any way that would be not favorable. >> that is a killer on it. leave you, david, with homebuilder stocks which had a good day today based on these numbers but i will tell you it is not a uniform recovery by any means. david: kind of up and down. jeff throbbing, thank you very much. good stuff. we've been asking if you think of the president's state of the union policies will be implemented? mike chimed to say, nope, elections do have consequences. jerry says, none. looks like there is consensus here. time for the number one thing to watch. let's bring back larry shover,

sfg chief investment officer. larry, no secret, european central bank decision. we have outlines of it but no specifics yet. >> no, that's right. we asked our members something, we throw numbers, figures around like nothing. this is trying to reorgize your entire capital structure. it is not nothing. tomorrow is a big day. it depend on size. size does matter tomorrow. will it be 500, 600 billion, whatever. what really matters more is the sharing of that risk. will they pull off the fact that maybe 50% of this will be managed by national central banks? david: last week, in fact, it moved the markets significantly last week, we got word that the germans, possible deal with the ecb and germans was in the works where individual countries would take the risk and european central bank would not take the risk. has that deal been solidified? >> it hasn't been solidified. that is a big secret we'll find

out more about tomorrow and schedule and sharing t would be a big boon to risk assets around the world if there was appropriate amount of sharing, maybe 50% of it. david: if, let's, theorize here. if in fact the central bank does not take on risk, individual countries take on risk, would that be a boon for the market? >> yes, it would, absolutely. especially european small cap stocks, really for everybody, it would be a great thing for the market. a little bit of a surprise. consider the political, social, economic obstacles they have to get around to manage all that. david: larry shover, here in new york city. good to see you, larry. thank you very much. >> thank you. david: before we go we want to take you inside, never-before-seen davos nightlife scene. this is the hotel europe where friend of the show and fox business contributor anthony scaramucci is hosting a wine party. when he hosts a wine party, not only full of important vips, of course our own charlie gasparino is there as well as liz claman.

he also has the finest wine. bottles of wine, a thousand, $2,000 a bottle. this guy knows how to throw a party. they're all there. it look like in davos. if you're interested in that kind of thing. meanwhile "the willis report" is next. >> hello, everybody, i'm gerri willis and this is the "willis report," the show where consumers are our business. punishing savers. president obama unleashing the taxman on college savings plan to pay for of his giveaways. >> i'm sending congress a plan to lower the cost of community college to zero. gerri: we have insurance these days tore just about everything but what about our furry family members? we'll tell you how to do that. should we promise to tell the truth about money to wedding bells? we'll have the latest on financial infidelity and plus get your reaction. we head out to davos where our own liz claman is hob knobbing with the