hi, everybody. happy new year. welcome to the "wall street journal report." i'm maria abort romw mo. legendary global investor mark mobius is with us. he's a rapper, an entrepreneur and a businessman building his own brand. in snoop dog inc. turn out to be a big hit? "the wall street journal report" begins right now.

here's bob pisani with some of the stories in the headlines this week. bob? >> here's a look at what's making news as we head into a new week, a new year and a new decade on wall street. a dismal decade for the markets has finally come to a close. the dow and s&p 500 having their worst performance since the 1930s. the dow off 8% since 1999, the s&p 500 down 23%. and the nasdaq with its worst decade ever, down 44%. the market's performance for the year was better. the dow was up 20% in 2009, t the -- home prices rose for the fifth month in a row in october. but the recovery continues to be uneven. just 11 of the 20 metro regions tracked by the case-shiller home price index showing an increase. hollywood's last weekend of the year was a blockbuster. the best ever as james cameron's

3d movie "avatar." back to maria. at the start of the new year and decade what's in store for the economy and your money in 2010 and beyond. joining us to talk about that, andy serwer and david wessel. thanks for joining us. andy, your new book called "starting over." will the next decade be better? >> first of all, there's one school of thought that this past decade was so terrible the next one can't help but be better. i'm not buying that, necessarily. we're going to see some changes in some trends. we talk about that, that are going to make things better. it is not inevitable that things will improve. in terms of seeing so much neglect, deferral of responsibility, i think those things are going to turn around

a little. >> david, looking ahead, is there another shoe to drop after the hits our economy has taken already or do you think we are looking at better times next decade? >> i feel like we must be living under a centipede the number of shoes that have dropped the last couple of years. i think andy's almost bound to be right. it was a terrible decade. and we ended up with many americans having less at the end of the decade than they had in the beginning. the history of america is that we usually -- things get better. so it's almost -- i think it is kind of inevitable the 2010s will be better. andy's right. it's hard to know exactly how. and the question is, have we learned anything from this past decade that we'll employ in the next one? will americans save more? will businesses still be willing to take big risks? will financial markets come out being handcuffed by regulation? >> you've got head winds, people worried about commercial real estate, worried about the bubble mentality of certain areas of this market. what would you say are the major

risks going forward. you mentioned a couple of them, david. as far as market impact, what are the risks that we face. >> i think you're absolutely right. commercial real estate is a huge one. big banks seem to be in better shapes than the medium-sized and regional banks. there's a lot to worry about there. we know the history of financial crises followed by recessions, there's a lot of head winds blowing at us. a lot have to do with credit. the economy is growing again. it's growing so slowly we're only hoping next year we'll begin to create jobs again. we have millions of jobs that haven't come back yet. that could mean depressed consumer spending, bad for consumer marketers. it also could mean a lot of political populism, hostility to business and trade that could hurt us going forward. >> andy, we're coming into the mid-term election year. with the public perceptions about the economy where they are, where do you think the economic talking points will be for this campaign? >> i think the economy jobs, jobs in particular, is going to be the big thing, maria, for the

election coming up. this whole cycle is really playing out true to form. the market response first, then the economy gets its footings, jobs the last thing to recover. if the president and his administration can help make that unemployment rate go down, i think they'll fair well in the mid-terms. >> how does the financial services sector look in the coming year or five years? i mean, obviously we've seen tremendous change. the landscape's changing. new players, consolidated industry. what does it look like and what's most important to look at in terms of the banks. >> we were the leaders of the world. i think now the world looks at us very askance. china says you were trying to talk to us about your free markets. no thanks. we saw what free markets did. we saw also what an oxymoron financial innovation can be. credit default swaps and derivatives. also we saw the most deregular markets in terms of london and iceland be the most problematic. i think you're going to continue to see government and private sector partnerships when it comes to the financial markets which is difficult stuff.

>> what about you, david? any change? what would be your vision as far as how the financial services sector looks? of course the significant political pressure on the reserve, challenges facing the central bank and chairman bernanke in 2010 are also significant. >> i think we'll see a smaller financial sector. the question is whether we'll have more profits in it because it will be more like an ol goply or whether we see fewer profits because the government's going to limit their risk taking and leverage. the fed, well, they've got it sort of mid-way. they've prevented a great depression in my view but they haven't got us to a full-fledged recovery yet. they have a very difficult time. they have to decide when is the right moment to begin to raise interest rates and withdraw the extraordinary amount of credit they've pumped into the economy. if they tighten too early we'll get another recession. that happened in 1937. too late and a falling dollar and inflation. it takes technical skill,

forecasting, luck. with time it's going to take an unusual amount of political kour courage. this comes at a moment when the public and congress is thinking hard about whether we want a federal reserve as independent and powerful as this one is. >> let's make predictions. stick your neck out, both of you. predict to us what you believe will be or may be the big business success stories in 2010 or beyond. >> right. or beyond. let's look at a little bit of a bigger time frame. i think the answer is software. this is where the united states leads the world. i'm talking about it in very broadly speaking, not just application. we're talking about software in terms of boeing, aircraft, goods such as dishwashers and appliances and in terms of entertainment. look at silicon valley. twitter, linked in, yep, zinga. that's where the innovation is going to continue. that's where we lead the world. it's a positive for the united states. >> david, success stories in 2010 and beyond? >> i agree with andy.

that would be on my list. two more. one is going to be mobile. the number of devices and the amount of power you have in the mobile device has grown extraordinarily in the last decade. it's going to keep growing. the second one is green. someone's going to find a way to make greener energy, electric cars or something. the global warming problem isn't going away. the anxiety about being dependent on oil from abroad is not going away. think with some support from the government, but largely because they perceive demand, we're going to see breakthroughs there. >> 4 billion cell phones in the world versus 1 billion pcs. that says it all. thanks so much. great conversation. we so appreciate it. >> thanks. >> have a great 2010. andy serwer, david wessel. up next on "the wall street journal report," host aextraord. i'll talk to mark mobius. it's a dog's life. snoop dogg.

lessons in perseverance and success from the wrapper and music mogul. as we take a break, take a look at how the stock market ended the week. could switching to geio 15% or more on car insurance? host: does charlie daniels play a mean fiddle?

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investor mark mobius is the father of emerging markets. he's executive chairman of templeton assets. what he says and how he says it is closely watched by investors. i've spoke with him recently about what he likes now, what he's avoiding, and how about that run in emerging markets. here's where he's putting his money today. >> from the longer term perspective we're still quite bullish on both china and india. >> are there areas you like more than others?

give me a sense of the real opportunities around the world right now? >> it's interesting. i just came back from saudi arabia. i was in some of the other countries in northern africa, along the mediterranean and here in the arab region. i'm quite excited by some of the things i'm seeing. profitability is very in some of these companies. wealth is high. despite the problems dubai has, credit is still available. of course, some of the banks are hurting. but that's going to be solved, i think, in the not too dig tant future. this is a very interesting area. if you look at the big picture in terms of the large amounts of money we have in our large funds, it would be china. it would be brazil. and then following that, india and russia. >> are there sectors that are leading the growth, in your opinion? >> there are two sectors we're emphasizing. first is commodities. we believe that commodities will continue to trend upwards. there's the demand/supply situation is such that we see higher prices.

the second area would be consumers. per capita income is going up at a rapid rate. shopping everywhere. big malls going up. in jordan one of the largest malls i've seen. of course, here in dubai the largest mall in the world is now in process and working. so i see lots of opportunity in the consumer area. >> what about the u.s.? what does it look like to you in 2010? >> the u.s., i believe, is going to have a recovery in 2010. and, by the way, that's one of the reasons why we think emerging markets will do well. because although emerging markets have suffered on their exports to the u.s., in 2010 you're going to see a recovery. with this u.s. recovery, the entire global situation will look a lot brighter. so i think the u.s. is going to do quite well. and, of course, there are many companies in the u.s. that have very good positions in emerging markets. and they should do even better. >> so what do you like in the u.s. right now?

how much of the portfolio would you allocate toward the u.s. versus the rest of the world? >> well, i would go something like 50/50. u.s., 50. rest of the world, 50. and then on the rest of the world, i'd put maybe 20% in emerging markets. i know these numbers sound high. but i think american investors generally don't have enough outside the u.s. >> in terms of the emerging markets, where is the business coming from right now? where's the demand? >> demand is coming primarily from china, to begin with. because china has become a huge vacuum for commodities and even consumer goods. so that's one area. then you're looking at brazil. brazil is a very big consumer market as well. practically every emerging market now is becoming more consumer oriented. india, of course, is the place that you're going to see growth going forward. not right now, but india has the biggest proportion of young people.

and as they move up into the earning ages, they're going to become big consumers. they already are, but they're going to become bigger as we go forward. >> i guess someone mentioned, too, the other day that there will be a billion new people entering the middle class as incomes rise and people move toward cities. is that what you're seeing? is this one of the big overriding trends that you're following? >> yes, exactly. well, just look at china. sales of automobiles now in china surpassed that in the u.s. and that trend is continuing, and you're going to see the same thing in india, same thing in brazil, russia, of course. believe it or not, a lot of people think of russia as just a commodity market. actually, it's consumer market as well. some of the consumer names there are doing quite well. and, of course, all the other markets, turkey, south africa, you name it. they are increasing sales of consumer goods. and that includes not only disposable, but hard goods.

>> i know you've spent some 40 years working in emerging markets and really all over the world. what is your approach to investing? what do you look for, and what's most important when investing in a stock? or in an area? >> well, nowadays, we look at the people behind the company. who is running the company? what is their mentality? how do they treat shareholders? what is their attitude towards shareholders? that is very, very important. we've learned that the hard way over many years. when we started, we looked at the numbers. we looked at the ratios. and we thought that was all that was required. and now we know that people are really the key. we have to find out what's happening behind the scenes. >> my thanks to mark mobius. up next on "the wall street journal report," he's a chart topping rapper, record label executive and even the owner of his own line of hot dogs. i'll talk to snoop dogg about i'll talk to snoop dogg about his dreams for business success.

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ventures, ranging from his own clothing and hot dog lines to providing the voice for car navigation systems. i talked to the rapper about his quest to be top dog. >> i believe snoop dogg's plan is well known around the whole globe, from the business aspect as well as the music aspect. you know, it was not a plan that i put together strategically. it was something that happened along the way. as far as me wanting to become the best at whatever i was doing. and at the time it was music, and then once it shifted to business because it was told to me that this is called show business. i always had the show. i never had the business. once i got the business, it became show business. >> that's a good point. first it was music. how did you establish yourself in the music business? you got a lot of competition. >> the first thing i wanted to do was to create my own sound and my own diverse look that was not the same as anything that was out, anyone that came out before me. i wanted to also be different and diverse with the dialect i used. i didn't want to sound like nobody. i didn't want to use the same

words. so i just had a strategic plan as far as it being original and just trying to find out, you know, could i really do something that was never done before. >> was it hard to break into the hip-hop culture? >> not for me. because i had dr. dre assisting me who was one of the greatest producers of all time. i basically just rode his coat tail. >> you could have been just another tough kid in a tough neighborhood with a tough upbringing, right? you could have gone either way. what was it that inspired you to go the route toward business and not in a route toward, i don't know, crime? >> well, i dibled and dabbled into crime in the beginning of my stages of the adolescence as a young man. once i did, i seen that wasn't the road i wanted to take. i felt i had too much intelligence and too much mind power to continue to just belittle myself and be put in that position. once i woke up and realized that

there was more to me, then i maximized my strength and i started studying the great musicians, started studying the great business-minded people so i could become who i am today. >> tell me about the scope of your business. you've got ten albums out. what else is incorporated into your whole business empire? >> whenever i think about making records, i think about the people who love snoop dogg, who've been following me for a long time. it's something about them that we've always been connected by the hip. we're face to face. we're personal. whenever i do some things, i like to make movies, videos, and just make them a part of it. i come into town, perform and do shows and make my fans feel like they're really a part of the whole process. i'm not a star in the sky. i'm a star in the eye. >> you've also enabled social networking to be part of your brand. tell me about that? >> i realize that that's the key nowadays. you have to be in the media as far as with the internet and the social activity that's going

down with the computers nowadays. so i try to have my hands in everything that's moving, you know, from youtube to myspace to twitter to, you know, whatever is popping. i'm trying to get involved wit and make sure that my name and my brand is on it. and i make it personal so it's not somebody doing it for me. it's me doing it in ak shallty. >> have you been in businesses that have failed? tell me about failure. is this important for the overall growth process in business? >> oh, yes. i've been a part of a lot of businesses that have failed. and i believe that failure creates the best business in the world because it trains you and it gets you prepared for failure and teaches you how to better prepare yourself for the next. the businesses that i failed at, they don't make me feel bad. they just make me want to go back to the drawing board, try again and come up with something that's different and more creative. >> where did snoop dogg come from? where does the name originate? >> well, when i was a kid in the '70s, my mom used to put the tv on a particular show called

"charlie brown." and it was a character on there name ed snoopy. i used to love him to death. my mama said i started to look like him because i watched him all the time, and that's what they named me. >> thank you. we appreciate it. up next on the "the wall street journal report," a look at the news this upcoming week that will have an impact on your money. a street light known for its bright lights glows greener. (announcer) some people just know how to build things well. give you and your loved ones an expertly engineered mercedes benz at the winter event going on now. but hurry - the offer ends january 4th.

for more on our show and our guests, check out the website wsjr.cnbc.com. you'll also find a link to my blog, investoragenda.cnbc.com. i hope you'll check it out. a look at the stories coming up in the week ahead that may move the markets and impact your money this week. monday the ism manufacturing index is released that details activities at the nations fact ris, mines and utilitieutilitie. tuesday the national association of realtors will issue the pending home sales index. wednesday we get the minutes from the federal reserve open market committee's last meeting. that could give us a glimpse into the fed's thoughts for 2010. friday the closely watch monthly employment report will b released by the employment department. finally today, times square is trimming its electric bill. new year's revelers from around the world watch the famous ball drop in new york this week. the 12-football is powered by

more than 32,000 l.e.d. lights. organizers say to light all 11,000 pounds consumes the same amount of energy per hour as two traditional home ovens. that'll do it for us today. thanks so much for being with us. next week i'll be reporting from the international consumer electronics show in las vegas. we'll check out what's new on the horizon in terms of electronics. it's the hottest developments in the consumer technology industry. be sure to keep it right here where wall street meets main street. have a great week, everybody. i'll see you again next weekend.