electronic auto and other export related issues earlier i spoke with melty hay strategy at bank of america merrill lynch. i also bought is about this year's pride price movements and the outlook for two thousand and fourteen. in that as of monday was great to have a style of this year. mostly from the benefits and an apple now. all stains the more stable part of a recent markets. mr safe from identity to mark's it was mostly increased by that the amount of expectation and then from gabriel. i sit here on a rule that was inquisition the boj and then the alta leases have started the second copies of the things on its hands. he missed us and use a stick the morning. now what happens. so was it into something that says that a quiet stay stable. but uno on the show was down so us to come up was quite stable market for japan in secret next the allied expect a good mom get more sleep some more wine shallots global economy is not bound to find specific species. so no my face and say to the united states is expected something from paper notepad. my year end target is seventeen seven hundred. um which has stayed

now earlier, i spoke with head of japan equity strategy at bank of america merrill lynch and asked about this year's price movements and the outlook for 2014. >> the stock market was very good at the very start of this year. mostly from abenomics. i mean, top-down political change, the most important part of the recent market. especially from january to march. it was mostly increased by the big amount of expectation. and then from april, actually, governor kuroda was in position of boj and real policies have started. the second half things a bit changed. investors tend to say, check and monitor what happens. so positive of investors are quite stable, but no addition. so second half was quite stable market for japanese equity. next year i expect a good market, mostly from the normalization of the global economy rather than japanese specific issues. so normalization, say, typically in the united states is expected starting from tapering of fed. my year-end target is 1,700, which is 15% upside from now. and it is supported by export sales volume is expanding and also inflation expectation.

economist, tank of america, merrill lynch -- bank of america, merrill lynch. go to you first, peter. we will go to michael on housing news. this is a chairman with a jumble of economics to deal with. how do you rate ben bernanke off the tape or yesterday and then the view forward? where does he stand? >> i think ben bernanke has done an outstanding job. financial under great uncertainty. he used financial policy to great effect. a clears been transition for the next fed chair, and ben bernanke has taken on tapering. he has made it clear that the policy is going to continue. >> there is the macro view. michael hansen, bring it down to the micro view. this is the dilemma that chairman yellen will have as we go back and forth, good and bad days. >> that's right. the reason the fed tapered as they acknowledge that given what they were looking for in the labor market, it was good enough to get them to start moving. there is a lot of -- we have had some wobbles in the housing market in particular. much of that is due to interest rates. as we go forward, the rates wi

straight rip off of everything i've said everything we've said on the show and the wall street game is to come up with a target thirteen hundred dollars in this case from merrill lynch bank of america they then will raise that target according to their they want to become the x. as it's called on wall street when the top analyst on the street corner an institutional investor or some other you know reputable or reputable you know analysis will look at one or two firms that are the price maker market maker that merrill lynch wants to be the biggest player in this i don't blame them of course ok well you also brought up ron paul so let's talk about what ron paul said everybody knows that ron paul said ron paul because it could destroy the dollar we know that he said that but there was an interesting point made in the articles talking about him saying this and i want to call upon that even economists who embrace the power central banks like university of michigan professor miles kimball recognize the currencies potential bitcoin really shows governments are behind the curve campbell said it demonstrates there's a demand for an outlet tronic equivalent of cash so here we are in this new

eighty five billion a year i bet it's happened for three years now and just this week bank of america merrill lynch's economic outlook for twenty fourteen in it they said the island alone which of n a all the only years and countries likely to see a significant in their words pick up next year. now the bank said the island's economy would grow one point nine percent next year more than twice its projection for the usa and just ahead of germany as well says dive into tito all this we always get the reality from mr across a. from the. listen tell me last time we chatted about this we develop a it's all good for you rosy and wonderful and very pretty but the reality is quite different there you go look below the top line if you look at the property market right now i think you're seeing greater relative inequality rents are being pushed up words salaries are still remaining very low obviously there's been lots of cuts so people are suffering because of the world across the board health care is probably the most inefficient health care system in europe and on top of that you've got very slow job creation

>> southwest airlines got an upgrade over at bank of america merrill lynch. ted continental, delta, plenty of them, jetblue had a great performance as well. oil of course pulled back a little i think. david: actually, a couple of pennies ahead. just a little bit. >> i will take that back. go ahead. lori: i think we have time to talk homebuilders. hovnanian particularly leading the industry higher after reporting earnings today, nicole. >> we've been watching homebuilders. the hope trade going into the spring season. hovanian came out with numbers. profit increased and delivery. [closing bell ringing] david: just in time for the closing bell. there we see it. it is not a pretty day on wall street although those dogs were pretty. we love the st. bernards. don't have the little kegs around the neck. lori: sure did? david: it did? good. lori saw it. have the eagle eyes. russell 2000. we had one gainer. all the others doing, not so bad. kind of an inverted pyramid. biggest loss at the top. at the end you end up with a gain in the russell 2000. dow jones taking it o

but bank of america merrill lynch saying this steel stock holds the most upside, especially as nonresidentialonstruction comes back to lye. inventory could weigh on steel prices as could a stronger dollar. keep an eye on the heavy debt sitting on many steelmakers books. seema. >> it was interesting, i was looking at some of the charts of these steelmakers. there has been a rally in some of these names over the last couple of months on this refueled optimism on growth prospects for next year. what if growth does not meet expectations? it will be interesting to see if these names in some way sell off. >> it's not just about the u.s. growth picture. this is a global story. with names like ak steel, allegheny technologies, a lot of these steel companies do different things. they all have their special niche. when china starts growing, that's a big thing. that's the second biggest economy in the world. >> and if we see a pick up in some of the other frontier markets, as well. >> absolutely. >> ho, ho, ho, tis the season to spend and spend big. we are calling it cnbc christmas listical. >> our litt

bank of america, merrill lynch says the euro falls 8.5% to 1.25, and morgan stanley says it's going evenower. it's a double whammy for the bottom line of some giants of corporate america. the one with with big overseas business. they'll see their products become less competitive, and their profits will be worth less when they bring them back home. look at mcdonald's. the company saying profit in japan today will drop by almost 60% for the year, thanks largely to that weaker japanese yen, already at a five-year low against the dollar. coca-cola, which gets more than half of its business outside of the states has already warned about it. and there's other big companies with big business abroad, p&g, yum brands, and tiffany, to name a few. scott, those easy-money bernanke policies were a gift for so long, it could be a whole different ball game. >> yeah, we will see. sarah, thank you so much. jamie dinan is here with us, as we said. let's talk about the biggest position as we sort of segue into the auto discussion i wanted to have. hertz. >> mm-hmm. >> big, popular hedge fund trade. why doe

and we are about to break more bitcoin ground here because this morning bank of america, merrill lynch'slobal rates and currencies became the first wall street analyst to give bitcoin serious study and a price target, $1,300. he is here to break down his report and give us his analysis of whether or not there is a bubble. david wu. >> thank you. i think it is fair to say that bitcoin is something totally new. you can't basically give it a evaluation based on traditional metrics. this is like a three-headed animal. let's take it apart and assign a value to each of the three pieces where we think bitcoin has a future. the first piece is a means of payment on eerks commerce. let's assume that 10% of global ee commerce transactions go through bitcoin. we think that would be worth $5 billion. the second major role that bitcoin can play is as a basic means of transfer. >> so like a western union? >> yes. what i did was take an average market cap of western union, money graham and euro nex. i said what if bitcoin becomes a major player. that gives me another $5 billion. >> theoretically that is

bank of america, merrill lynch, an 8.5% drop from here. strong dollar, weak euro. against all sorts of other currencies. and it could be a huge headache for some of america's multinational companies. some of the most recognizable ones. if you look at today's news, for instance, on mcdonald's, saying mcdonald's japan forecasting profit will be 60% lower than they were expecting for fiscal year 2013. and in large part because of the weakness of the japanese yen and the strength of the dollar. >> so to what degree can these multinationals hedge against this? >> they can. they've been dealing with currency fluctuations for a long time. it hits them on two parts because it makes their products less competitive overseas, more expensive and also with they bring those profits back home, it's worth a lot less. you can really break this down by sectors. materials are ones that tend to get hit. we got research from citigroup's chief analyst. materials, food, i mentioned mcdonald's, staples like p & g which get a majority of their sales outside of the united states. >> i love t

bank of america/merrill lynch downgraded shares to underperform from neutral. weaken. to nearlye surged 250% so far this year. -- expecting the shares to weaken. a company gave marketing approval for the oral version of the treatment for high blood pressure in the arteries. >> at number five, kb home's. was upgraded to neutral from sell at citigroup. the bank citing valuation and more favorable to thousand 14 earnings outlook. raising the price target to $17 per share. >> number four, tiffany's. ordered to pay 400 $49 million ater the watchmaker claimed joint venture. the reward is more than they earned last year in net income. >> number three, men's wearhouse. joseph a bank rejected the proposal, saying is significantly undervalued the company. they will continue to review purchase opportunities. they originally made an offer to purchase men's wearhouse. >> number two, target. coming under fire after it was revealed that as many as 40 million credit card and debit cards may have been stolen. two senators calling for an investigation into the security measures.

michelle meyer, getting back to bank of america merrill lynch for the 8:30 job seaport. us apartheid state. according to john campbell, a senior fellow at the council of , nelsonrelations mandela is a nonracial democracy according to the rule of law pt is the president of the consulates of foreign relations. ambassador, this moment has been a long time coming. what is the view forward? >> south africa was the beneficiary for two grateful things. first was the peaceful transition of apartheid to a new political system and his own willingness to live -- and to give up political power after one term as president. the problem has been since then, the challenge is institutionalizing them up or see, making it a viable economy. -- institutionalizing democracy, making it a viable economy. >> what could be a positive u.s. policy e we have paid lip service but is very tangible projection of washington to benefit south africa and the rest of the sub-saharan continent? >> absolutely. africa will grow south of the , five percent. i think the real possibility is with the growing trade

shout out to michelle meyer and others, she at bank of america merrill lynch nailing the call on housing out. mario gabelli is decidedly in. giving you something more to look forward to, a christmas morning stocking stuffer. how about a few of mario's best picks of 2014? weatherford? and oil services company. if you look at the chart, it is nearing long-term support. a great point. i like to look at figures. but my no more numbers oriented. charts -- i do care about everything. weatherford is a benefit of horizontal drilling and fracking, which is a technology that is helping the u.s. with their current account deficit, political independence, and really helping the american consumer and creating jobs. >> and oil services company. >> they make artificial lists, so when you go horizontal and two lateral view need something to take the gases out. jeff immelt from ge bought a company in artificial lift, went public. the company has about $18 billion in revenues, $13 billion of good quality, 12 billion shares out. they were going to slow. all sorts of challenges with taxes, foreign corrupt p

now, basically there is no doubt from bank of america, merrill lynch. oncerns us is too bullish. the valuations of runoff. concerned but competitors, downgrade micron to underperform. another pick that they prefer in this round. they say it is cheaper and more competitive, but micron, of course to my memory chips for pcs, servers, tablas, the light. a downgrade, the stock is down 38%. and then there is michael. well, retail trend is what hitting him today. m4 and a half percent. the analysts over and read bush saying that we believe, and this is their ," lower-than-expected mall traffic at six -- resulted in higher than expected markdown inventory. welcome had been watching fox business you would know that is what would hit those retailers. markdowns. they just don't make the margins. connell: thank you. as you talk about the economy cannot we will, i believe, have an optimistic take on things. certainly there are concerns. obamacare being one of them. big topic. but here to tell us what he thinks about business next year is our friend, chief executive o

and monday on our web show talking numbers mcneil curry the technical strategist of bank of america and merrill lynchoking for a correction of up to 20% early next year. joining us now to talk about that, barry glassman, got herb greenberg also with us, barry, overall, do you think we could have a 10 or 20% drop to kick off next year? >> i don't know whether it's to kick off next year or some time next year. anything that goes up 45% in two years or 24 months or so, can easily see a correction of 10%. the question is why. and for me, it has to do with the actual fundamentals of the market. we are seeing this year a stock market up 30% or shy of 30% and earnings are up 5% or so, revenues up 4%. all that's happened this year is that the stock market has gotten more expensive. >> but why only 10%. why wouldn't you go for the full 20 like curry did? >> well, i think that what we have right now is a by fur cated market and the statistics i sent along earlier today show that the lower quality companies, the up withes that s&p actually ranks at c or so, those companies are up about 57% year to date. >> you'

bank of america and merrill lynch says the s&p is heading to 2,000 in 2014, an 11% in current levels.bc interview. why 2000 in 2014? >> i think that where we're sitting right now is the sweet spot for equities. you've got sort of a rising interest rate environment, low contained inflation and the beginnings of what looked like an economic recovery. that's actually been a pretty good spot for equities historically. so we think that 2014 could be quite a good year for the equity market. >> it would seen given what are we up, 26 or so on the s&p, really an 11% up year following a 26% up year? >> i think we're going to get it. the one thing we always go back to is there's really no historical relationship between what happens in one year and what happens in the next year. i think it's more about valuations, earnings growth, the potential for corporations to start spending again, creating economic activity. and i city think pockets of the equity market are incredibly cheap. it might not feel like it but they are. >> let's go there first. what's incredibly cheap in your opinion? >> here's m

we have a loser, micron technologies, bank of america and merrill lynch. it and people are going to start selling it as well. people, now they're fighting about the on-line comments about phil robertson's comments in gq, but fistfights are breaking out in stores over sneakers. nike's limited release of jordan's gamma blue, these have caused intense fights across the country. want to go back to you, juan. a lot of people are saying nike is to blame because they hyped the sneaker and put out a limited amount. i say they're apologieses and not what is going n. >> they have become a cons standpoi constant reaction to a new sneaker, it's not the first time. this happens on a regular basis. nike knows this. it's like a sensation, people look forward to it. you can go into some shopping malls and people are lined up the night before, charles, for what? why are you spending that much money on sneakers? these are not upper income people who are lined up, for the most part poor minority kids. charles: what do you say? juan, you defend all the programs that go to put

southwest airlines, which got an upgrade over bank of america merrill lynch. ar. they came out with a warning that the sales are not looking as good as they hoped. sales down 8, 9%. >> and the ceo left yesterday. nicole petallides down at the stock exchange. thank you. >>> 11 minutes before the top of the hour. the sign language fake fessing up this morning. that guy, as it turns out, was an imposter, but he's broken his silence. he'll tell us what he was thinking. >>> but first we'll check in with martha mccallum for what's coming up at the top of the hour. >> good morning. hi, everybody. very good, brian. >> thank you. >> what is he doing? >> saying he loves you. >> cpr. >> anyway. here we go. we've got a good show coming up this morning on "america's newsroom." this question, is obamacare potentially election dooming for democrats? bret bare is here on that and a frightening e-mail that says if you signed up for the health care system, you may not be covered, folks. the sexiest man alive to the rescue? could be. bill and i see you at the top of the hour >>>

. >> city group and bank of america's merrill lynch could be the next financial institution facing charges for selling bad mortgage securities, reuters saying the justice department is claiming tens of billions of dollars mortgage investors had to pay by balancing risky loans. last month, j.p. morgan agreeing to pay $13 billion to settle similar charges. >> prius is the best new car value according to consumer reports which says it costs 47 cents a mile. the nissan armada s.u.v. came in last. >> edward snowden hopes to make to proof mom moscow to brazil, publishing a letter asking for three and asylum in a brazilian newspaper. he said he'd help the country uncover more information. in brazil, public opinion over snowden is mixed. >> no, brazil should not give asylum. he is not a person you can trust. if his own country cannot trust him, why would our country trust him? >> the brazilian has not received an official request for asylum. >> jay johnson confirmed by the nat to be the next homeland secretary of community. he served at general counsel for the department of defense. he served at g

falling today after a big down grade from bank of america, merrill lynch. alk about competition. their big concern is about memory pricing. we are seeing the stock down about 4% at the open. >> new highs for the nasdaq. let's go to my personal favorite now. bonds and the dollar. rick santelli with the move vermovers in chicago. >>> as i look at the ten-year on the two-day, a couple of basis points elevated and i can also see about 2:30 a.m. eastern there seemed to have been a very fat finger hit that popped yields down a bit in an exaggerated fashion. let's take a step back. let's look at some year to date charts. let's first start out, you've all heard about the rabbit and the heare and the tortoise. here is the hare. the yields that are going up at an aggressive fashion. it is the five-year. many of us thought we would see a lot more trade at 3% after the last fed meeting. a funny thing happened on the way to 3%, it is called the yield curve. many were short set tens and set 30s. they were very long in the five-year. is this more than a reversal? a logisti

of the upgrades in retail today, tiffany, conviction buy over al coldman, kohl's over bank of america merrill lyncht of small stories that might get lost. >> how about facebook? where does that stuff come from? facebook is going to be in there. that was incorrect. some of the other things, goldman downgraded from conviction buy to buy. you guys are toomey on. not down that much because i believe macy's is the way you find out what's doing well. >> really? >> michael koors, cvh, these are macy's brands. macy's i think is still doing well. >> market rally, actually, the s seesaw action was interesting to watch. the timing seemed to be the services number, right? was a little better than expected and obviously we saw a change in the market's attitude. but if the data does get better and the taper fears build, how much of a construction do you think is built in? how far do we go? >> when you look at these dow stocks, and i just focus on the s&p for a moment, there's only a couple of stocks that i think are really linked with taper being bad. and they tend to be not the case. i mean, goldman has stalled

. >>> still with me is the bank of america and merrill lynch global research. before you told me your outlook for next year. why do you see it going down to 125? is that because the ecb is going to pull another trick like another rate cut, lgro, or is this all about fed tapering? >> that's a good question. shorting the yen used to be a big trade. looking into next year most likely we expect the ecb to be on hold. the fed will be tapering. the euro dollars will weaken. however, there is also a risk of deflation in the eurozone which in this case will push the ecb into an area that it doesn't want to go in conventional territory. the threshold is high. they're keeping in mind that it will force the euro to weaken. even if the ecb should hold, the language will be much more dovish than one we have seen this year. >> it's not inflation, is it? if you look at the november cpi numbers, that showed a slight uptick. it's mild disinflation that we're talking about. >> that's true. the ecb can survive with inflation well below the 2% target for some time. according to it

ones to hold, i'd say likes of southern company, a utility, likes of bank of america, because i think merrill lynch is not getting its fare due in the company. i would look at some things going on on the other hand with nvidia, a big consumer electronics show next week. i think their seven inch tablet supposed to be the fastest out there. that will get buzz. those would be holds. ones i'd fold, too easy to value, at least too easy in my mind to value. twitter, that's tough to value, but i think garmin's easy to value, tesla, and i think netflix are fairly easy to value. all are overpriced. >> why do you say tesla's easy to value? are you looking at as an alternative energy stock, automobile company? >> no. automobile stock, and i'm also look at bmw and volkswagen, two companies making cars for about 100 years, and doing a fabulous job, by all reports, with their new versions of plug-ins or hybrid electric cars. i think that will bring these guys back to earth. you have a benchmark to measure them against. as everybody else starts doing this, forget about those two for a moment and go to audi and me

bank of america and smith jr. former chairman of merrill lynch international coming up with his take on the company's downfall. is there is such a thing? i do think there is such a thing. adam and i will introduce you to the man by the brands that bottles once is left over by some of the best figures. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to. is tt na? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. and this park is the inside of your body. see the ecial psylliumiber in metamucil actually gels to trap some carb to help maintain healthy blood

of the man who actually implemented charlie merrill's vision. five years on from the take out of merrill lynch by bank of america.bulous "lightning in a bottle." there's passive investment in active investment. page 104, they had to train the damn bull to go through the china shop? >> they got props, then got him to go through a real china shop and it was that the list. >> the image about the delicacy needed in markets. today we have wealth management. boring. but not sound like your father or charlie merrill. this becomedoes after the energy of ef hutton and merrill lynch and others? >> i think they are calling it ever names but it really is the same thing. the first principle is you have to focus on the needs of the client and do what is right for the client and have integrity. >> integrity is a two percent fee. john from rbc capital markets has been good about this, stewardship. how cutthroat is the brokerage big dance business now and will we lower the fees down to where we can't make money? fees.hink we are lowering look at merrill lynch. we are not dealing with a small investor anymore at merrill lynch. fin

would be the largest shake up in regulations since the financial crisis when bank of america slipped in and change the merrill lynch. our next guest was a somewhat respected witness to a firsthand and wants to set the record straight, the former merrill lynch international champ and author of the book catch lightning, your father is one of the founding fathers in 2001. you started to get into trouble. i heard you talk about this issue, almost complete failure. that you use to focus on client focus, respect for the individual, team work and integrity. this is the culture you were part of. that change and led to your departure. >> it was very sad to see. the reason i wrote this book, the true history of merrill lynch, the company that came and it was successful in 2000, a lot of vicious history was written to change it and those principles got pushed down the line, they were not in trouble to the overall operation and what happened is we got overleverett in 2007-2008, got into a business we would not have gotten into to that extent. >> the man in charge was sam o'neill, something you have been critical of but in hind

of perfection. >>> welcome back. so, what really happened that led to merrill lynch collapsing during the financial crisis? it forced a shotgun marriage with bank of americae with a first on cnbc interview, win smith, former chairman of merrill lynch, current ceo of some adventures and author of "catching lightning in a bottle." thank you for being here. >> thank you, kelly. >> 3 1/2 years, the first book you've written. is this revisionist history? some people will say, isn't this a big pr exercise about how great mother merrill was. >> no, i didn't want merrill to be known for what happened in 2007 and '08 and i didn't wanted to be known as characterized by the ceo. so, this is a story about the merrill lynch that brought wall street to main street. it's about the firm that was at the peak of its game in 2000. and it's written for all the families of merrill lynch and the people who are still there as well. >> what was the moment that you said to yourself, i got to write this? >> i thought about it for a while. i delivered a speech to final shareholder meeting five years ago tomorrow, and i got a call from a fellow whoe had actually been commissioned to

settlement brought against banc of america's merrill lynch. 1200 black employees say the investment firm favored white brokers by giving them more profitable assignmentments. the bankies the charges. bloomberg says it is the third largest race lawsuit in country. >>> bitter cold, heavy snowfall and wind advisories have been issued in a b in of states. for more now let's speak to mark snyder at the dallas-fort worth airport. mark good afternoon. i understand you have a new development to report with regard to the dallas marathon. >> yeah, not a huge surprise, but certainly a huge disappointment. it has been canceled. they decided it was in the best interest of the public, the runners, the volunteers, not to have this in these icy conditions. 25,000 people were going to be at this thing, not happening now. and the dallas christmas parade canceled after 26 years. that has never happened before. and we have folks not just trying to get on their flight, but trying to rebook on another fight. blast fort worth reports 330 flights have been canceled here. american alone has canceled a thousand flights across the country, based mostly on the fact that people can't get in in