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. >> ihi 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 facg 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 wi be more like an ol goply or whether we see fewer profits because the government's goi 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 lt 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.

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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 coodity 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. weave to find out what's happening behind the enes. >> 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

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and medicare guide and find out... how you could start saving. calvin brodus was a former l.a. gang member who turned his life around when he met rapper, dr. dre. he game snoop dogg. the rapper is also an entrepreneur, starting business 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 tose 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 posion. 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 itarted 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 gr

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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 assoction 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 be released by the employment department. finally today, times square is trimming its electric bill. new year's revelers from around the worl 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.

strict security. new rules for airline passengers flying to the u.s. starting today. the big changes and who's affected the most. then, terror threats so great the u.s. and great britain close embassies and amplified fear in yemen. and, world's largest. celebrating the biggest skyscraper anywhere. >> you have to give them credit for an engineering feat. >> it's monday, january 4th. >> from abc news, this is "world news now." >> i'm not sure engineering feat even adequately describes it.

it's more than a half mile tall. they say if you took the sears tower or willis tower and put the hancock center on top of it in chicago also, it still wouldn't be as tall as the burj dubai. >> twice the size of the empire state building. must have an amazing view. my concern would be elevator issues. it's a long time. >> one of those breaks, you're in trouble. we'll take a look at the world's tallest building just opening this morning. thanks for joining us this monday. i'm jeremy hubbard. >> i'm linsey davis sitting in for vinita nair. starting today citizens from 14 nations flying to the u.s. face tough new security at the airport, including full-body pat-downs. passengers that passed through a country that may be less than friendly to the u.s. here's lisa stark. >> reporter: immediately after the christmas day bomb attempt the government ordered pat-downs and extra luggage checks for all travelers on international flights to the u.s. the new measures try to narrow

that down to those who may pose the biggest threat. passengers with passports from or who have traveled through countries that sponsor terrorism or other suspect nations will be subject to extra screening. many other passengers traveling from abroad can also expect extra scrutiny on a random basis. but will those measures close the gaps that allowed abdulmutallab to bring a bomb on a plane? >> the biggest hole is that people get on board airplanes who should not get on an airplane without going through secondary screening, which is what happened here. >> reporter: the goal, of course, is to keep a potential terrorist off a plane in the first place. abdulmutallab was in a terrorism database but not one that triggered extra aviation security checks. that is now likely to change. >> i think you may see different threshold for what makes you a selectee or what makes you a no-fly. right now those are very, very limited. i suspect they'll probably broaden those definitions. >> reporter: tsa is also buying more full-body scanners for use

in the u.s. and adding air marshals to international flights. what's critical, say many, is tighter security at foreign airports. >> it's at airports across the globe where terrorists are trying to slip through the cracks and attack us. >> reporter: and what countries on someone's travel itinerary might subject them to extra scrutiny? nosurprisingly it includes pakistan, afghanistan, iraq, and yemen. among other countries. lisa stark, abc news, reagan national airport. and passengers at newark airport this morning are finally boarding flights after a security breach there. it happened last night when a man managed to walk through a screening checkpoint exit into the secure side of a continental airlines terminal. flights were grounded for hours. passengers in that terminal had to be evacuated until a security sweep was finished hours later. president obama is cutting his vacation in hawaii short to meet with top advisers over intelligence failures. much of the focus will

likely center on the country of yemen where the u.s. embassy is osed for a second day due to threats. rachel martin reports from washington. >> reporter: in yemen, security forces step up training in their fight against al qaeda. >> this is a real threat. this is an imminent threat that is coming from the al qaeda arabian peninsula area. >> reporter: the top u.s. commander in the middle east traveled to yemen. he met with the president, promising $140 million in aid, double the amount from last year. the move won republican support. >> the increased assistance that we are providing to yemen is absolutely essential. >> reporter: in 2009 alone there were three attacks in the u.s. with links to yemen. the muslim convert who killed a u.s. army recruiter in little rock, arkansas. the ft. hood shooting in texas. and the christmas day attack on a plane above detroit. >> every one of those three is connected in one way or another to yemen. so we've got to focus there preemptively. >> reporter: deputy national security a