we are hearing from credit suisse, deutsche bank, morgan stanley. they are hoping to eliminate 1200 jobs worldwide. a lot will be affected in asia. morgan stanley confirmed that they were done with 1200 job reductions in the fixed income sector. european investment banks reducing costs. they are seeing slumping revenues and higher compliance costs, not to mention tougher regulations. citigroup coming out with a note saying european investment banks are expected to see profit wiped out in the fourth quarter. they think that deutsche bank, credit suisse, and ubs will post losses for the three months through september while barclays will barely breakeven. angie: ouch. thanks so much for that. a swiss investigation into a troubled fund says about $4 billion may have been misappropriated. prosecutors are seeking further information. what did the swiss find? >> they have been looking into say for some time and they there are indications that $4 billion may have been misappropriated. sayingsued a statement that they saw for cases involving allegations of c

suisse note to being and sledding. but with all of the hullabaloo a blockbuster blizzard for the ages. , maybe some clouds either way i am holding out for offenders go. -- thunder snow. there is between 60 and 8 feet below my feet to right now. they are not making it as we speak because it is too warm >> and above 30 we cannot make our own snow. >> to is that genius ordering all that a few days before? >> i did speak to wilson in the i said snowmageedon? >> that is what we want. although we do expect to is 16 droll little little bit sooner. >> then is there a snow day? if there is a blizzard there will not be the event. >> as of right now it is going on as scheduled but it is pretty exciting people are getting ready for it. i am playing in this note today. just a reminder around this time last year in the middle of times square when the countdown started. this is unprecedented. i will get up there to make as many snow angels as possible. ♪ >> i bet you did not know that today is a holiday. those that don't live in the

the study draws from the forbes credit suisse s global wealth databook. back in 20-10, it took 388 ultra-rich individuals to own that portion of global wealth. oxfam also reports that the top one percent own more than everyone else combined. coming up-- why a world war could be brewing between donald the u-s embassy confirmed that "several" americans are missing in iraq. this is video of a checkpoint there. an iraqi security official said the americans were taken by a group of gunmen, from an apartment in baghdad. the official said two of three missing contractors are dual iraqi- american citizens, and that the third is an american national. the u-s state department says it s working with iraq to find them. just hours after the u-s lifted sanctions on iran for a nuclear deal made-- the two countries announced the release of prisoners held in each country. the u-s is setting seven prisoners free as part of a negotiated swap. the seven were accused or convicted of violating u-s sanctions. iran is releasing five three of the prisoners are already on their wa

a lot of analysts from jpmorgan, credit suisse, morgan stanley, have an putting our ports that pointsome of the weakness in the iphone. this is a point in the apple product cycle at the iphone, where demand typically does a dip. we saw this a couple of years ago. they have refreshed models that look similar and they typically do not sell quite as much. we know apple is likely to go ahead with iphone seven. will this have a big impact on that? adam: i think some of the concern is last year, tim cook be aery adamant this would new product refresh cycle, they would enter new product categories with the refreshed apple tv. results from that have not , still nothinget on the scale of the iphone or the ipad yet. i think investors are further realizing the iphone is really what is driving this company's business. any weakness really makes them nervous. let's keep this in perspective here. we are talking about a company billion.over $200 this is a country doing just fine. immensely profitable. in terms of investors and where the stock is valued, they look at any sort of slowdown as an area o

a senior advisor at credit suisse is still with us.lked about what is happening in china, the tensions. let's take a moment to think about the fed. whether --ng about are you talking about whether it would be good to use interest rates? >> when you get evidence of asset bubbles, whether it be in real estate or in equity action --, the first you take micro measures. you tighten up, you direct intervention. what stanley was saying is that you then reach the stage when you have to hit those asset bubbles with the interest rate weapon. it is not the first line of attack, but it is a second line of attack. most central bankers just focus on the inflation target, the fed focuses on the inflation target plus the employment target. contrast to the ecb and the bank of england. a shift, weaying is need to focus on asset bubbles. >> i have always taken the view, that was wrong. one cannot ignore asset bubbles. >> we have a few more issues to get to. it is a busy day, which kicks off the first few days of 2016. inflation numbers are due out tomorr

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because you were the messiah of credit suisse.u knew me a little, and you know i'm focused on the medium and long term. i've never been worried about my short-term reputation. it goes up and down. you are never as good as they say, never as bad as they say. so i just try to keep a cool head. i tried to focus on the job at hand, which is to deliver a strategy. i was pushed when i arrived that we delivered by october 21 and new strategy, targets, organization, and team. in three months, i think that is a reasonable job. ♪ sergio ermotti: it was a very challenging quarter. in addition to everything you mentioned, think about the seasonality that you also have during the summer. so you go from an environment in which the fed was expecting to hike and it turned out to do the opposite. big changes in the sentiments and emerging markets, what happened in china, what happened on the geopolitical front. so i'm very glad that we manage the risk of the bank effectively, but also we managed, managed in the good times, with clients, their risk

maybe because graduates have gone on to work at credit suisse, morgan stanley and goldman sachs, and earn a million base salary of $85,000, the first year out of school. more impressively, a few years down the line with a little experience down their belt, a quantity may command a salary of a quarter of a million with a bonus of $500,000 or more. >> the reward could be a sense of achievement. that you have done something great. and the money that comes about it. if you did something great, it can be measured. i can disintegrate. >> with a $100% placement rate for students in the maths and finance programme, it seems like the opportunities on wall street are limitless for students with a degree in financial engineering. and in the end it may be the nerds who have the last laugh. >> how faster we going. >> i have cruise control set at 35 >>> and today. i'm david shuster, in for ali velshi. thank you for joining us, have a great night everybody. >> previously on hard earned >> i hate walking into the job, because i know there's something going to be said. there's something going to be d

the credit suisse bank's 2015 global wealth report stated that, quote, the lower half of the global population collectively owns less than 1% of global we willth while the richest 10 percent own 88% of all wealth. many of the richest 10 percent were at the forum. but the inequalities, social and economic, were not high on the news agenda. we try to get to the bottom of business decisions. the world economic forum represents most people who are very important in business. we try to understand their thinking and challenge them under business models. >> the notion that these channels real capitalim. to do so you have to chronicle how they can produce and reproduce and capital along the lives of people. >> i think the easiest thing to do and what most business reporting is being a mouthpiece of capitalism. >> ken killed it last year. looking forward to your fourth quarter results... >> a lot of business journalism is reporting what the people who run business say. in sports journalism, you say chelsea beat arsenal 1-nil and in financial journalism, you say the stockmarket fell 1%. you report the s

aing data from credit suisse, calculated wealth of the 62 most affluent people was the same as the poorest 3.5 billion people. they want to increase efforts to end such inequality. a check of the markets right now on a straley a where equities are right now at 48. it is 1% ahead of that critical gdp figure, the fourth quarter out of china. the us chilean dollar is holding at 58 u.s. cents. we are seeing a slight strength here. let's see what can :00 local time brings in terms of data. we're seeing the selloff right now. a slightly stronger new zealand dollar at 64 u.s. cents. still below that double of 65. china's guest says central bank will cut interest rates again in the first quarter. there from the local head of derivatives strategy when first up returns. ♪ angie: the stories making headlines around the world. attacksas said questioned the settlement policies and the commitment to the rule of law. the ambassador says washington was concerned that israel's strategy of building in the west bank and palestinian development. prime minister benjamin netanyahu says the comments were inappro

. >> second stock here, gm, general motors, credit suisse upgrading.ong free cash flow, about 13% in 2016 can be sustained longer than the street is expecting according to credit suisse and there could be margin upside in 2016. also what the analyst called substantial cost savings ahead. >> general motors has been pounded a little bit lately. some of the ratings and price targets, morningstar, the highest i see, $48 a share. stock is just under $30. so you wonder if some of the analysts will start ratcheting it down. credit suisse the opposite. they are very confident. third stock is google, aka, alphabet. i still can't call them that. raising the price target to $900 from $880. this is why i pulled this out, it's the strength of the youtube search. that's what the analyst is basing this on. thinks the share of digital ads will go to 40% on youtube by 2020 and think the most people in the ad business are still not classifying digital video ads the right way and they see it evolving into google's favor. i know there's at least one $1,000 target on the s

credit suisse upgrading the stock. steven nicholas upgrading it and $17, slightly less bullish. >> credit suisse pointed out even if wti averaged 20 bucks a barrel, management sees downside of that $120 million to its d f dividend payout category. >> borrowing money is the new making money. >> in the energy sector. fourth stock, service now, the stock is getting pump l inting . it was the billings that was a problem, came in with guidance on full year on billings, coming in, in line, downgrading to neutral, saying the current macro conditions can't sustain this multiple, which is nine times, 2016 estimated sales, which is a premium to its gears. >> how can you beat earnings but billings come in light. today's under the radar name is nectar therapeutics. nktr, starting coverage with a buy and a $21 target. stock at 1364. in volatile markets, the commercial portfolio offers a degree of stability. they said disappointment on the nktr 214 product, if it doesn't work, is ten bucks. but the upside is higher if it does work.

the study draws from the forbes annual list of billionaires and credit suisse's global wealth databook. in 20-10, it took 388 ultra-rich individuals to own that portion of global wealth. 13:06:04 short "five waltons in the top 10 richest people list. they're taking away our walmart." a neighborhood walmart is closed for good this morning, and it's making for a very tough adjustment for people in the community. 13:36:26 sherry yonko "we need this walmart and it would be really nice if they don't shut it down." (butted with) 13:05:23 alexander short "it's kind of that in retrospect kind of feeling because we always complained about coming here. it was always understaffed, you're waiting in line forever, but it really sucks that it's closing down." the store on craig and nellis is one of 154 walmarts nationwide that's shut it's doors for the last time. the location didn't fit their "long term plan." walmart says they will help the 350 employees transfer to other locations, or they'll get severance packages. today, volunteers with the red cross will be out in full force to try and make sur

the ceo of credit suisse. up next, the portuguese economy minister. ♪ manus: 7:20 in london.traight to dat vos. jonathan: thank you very much. by are joined first w portugal's economy minister. greg to have you with us. the remarkable thing about the selloff over the last month has been the peripheral that he has done ok, with the exception of perhaps portugal. 10 year yield spiking, what do you make the move? what do you think is behind it? >> i think there is some speculation in some agents in the market that have been unhappy about the solutions that t, but iral bank go think in the end it's an awfully speculative movement. we have had issues in the last week, and we got negative interest rates for short-term debt, and we got the lower spread when compared to germany for a public that -- was three times the amount in the market. jonathan: this spread over 10 years is still about 250 basis points, so there is still clearly some concern about the credit of portugal. i wonder if city bondholders -- what can you do to reassure investors? >> whatever number there was, the autho

this is the same point that the ceo of credit suisse was saying.na will go through these massive volatility movements as they try and regulate and figure out the complex market, but overall the chancellor told me he was bullish on china. is definitely a tougher start to the year, and we see that in the financial markets. but i would look beyond the markets and say what is driving these things. china is moving to a consumption-based economy. that is a good thing. energy is cheaper. that is a good thing for most families, businesses, and most countries, but that is a fundamental good thing for the global economy. stephanie: it blows my mind that we are in davos. what do you think of china? talking to the u.k. chancellor, did he address the markets at all? clearly he is not a markets guy, but he has to be, given what we have seen. francine: first of all, they are all here. talking to george soros, talking to george osborne -- no big deal. francine: it all depends on the timeline. this is true for investors and businessmen and for finance ministers. wh

guy: the ceo of credit suisse speaking to francine lacqua a little bit earlier on.ositive on china. compare and contrast what he had to say about china with what we heard in francine's conversation with george soros overnight who says he is currently watching the hard landing happen in china the big subject of davos. let's talk about what is happening right now. draghitalking in -- talking in's right now. -- talking in davos right now. we are up across the piece this morning. not as much as tokyo, 5% plus. center.mains front and that is the focus. that is what we are going to talk about. let's get back out to davos and francine lacqua. francine: thank you so much. we are pleased to say we are hit -- where with ahead of -- jin liqun. this is an economy that will do great. are we overoptimistic? pessimistic? china is doing fine. up to a newing stage of development and adjustment. this could be called a transition. -- a transition period. china should move away from the former paradigm to a new system, instead of putting money into fixed asset investments. export of pr

if you look at credit suisse's ceo, nouriel roubini of -- even christine lagarde was pointing that out. growth is generally up. if you look at the davos consensus, is often wrong, and there is a difference between reality and perception. it's not reflected in the fundamentals. often they are better forecast. francine: that's exactly it. we have to see whether we trust the market or central banks, the people that watch the world. half of the people we interview say don't listen to the market. the others say it is a sign of things to come. what is your take on treasuries, david? morgan stanley and -- david: sure, sure. we still think the curve will flatten this year. that is probably what you are seeing, spread between the long end.n shorend and short 2%, withinry at fixed income, we do see that there are some opportunities in the credit space, but it is rising every time. to further oil plunges, the more the fallout in those related bonds. the contagion we are seeing in the credit quality throughout the u.s. system. francine: thank you so much. david stubbs stays with us. simon kennedy,

the report studied the annual list of the billionaires credit suisse global wealth. that is mind boggling to think. jonathan: we're not in the top 62. watching the weather we will check back with the weather team when the cold snap will break and what the weekend may have in store. >> is it time to stop calling people like that ♪ i don't want to live with the uncertainties of hep c. or wonder whether i should seek treatment. i am ready. because today there's harvoni. a revolutionary treatment for the most cmon type of chronic hepatitis c. harvoni is proven to cure up to 99% of patients who've had no prior treatment. it's the one and only cure that's one pill, once a day for 12 weeks. certain patients... can be cured with just 8 weeks of harvoni. with harvoni, there's no interferon and there are no complex regimens. tell your doctor if you have other liver or kidney problems, hiv, or other medical conditions, and about all the medicines you take including herbal supplements. taking amiodarone with harvoni may cause a serious slowing of your heart rate. common side eff

emily: that said it does fall in line with the trend we've seen from jpmorgan, credit suisse, about iphone 30% sounds like a lot. tim, what are you hearing from suppliers? tim: well, we saw a couple splares have already announced december sales this week, taiwanese companies have to report every month by the 10th of the following month. one of the big names reported yesterday and we saw their december sales fall quite a lot from november. other names have seen rather large decreases including the company which makes the back light for a lot of apple products and the batteries and the metal casings for phones have all posted pretty strong double digit sales declines for december. but as gene says, we often see that. what we're seeing this time is a lot larger scale than maybe in the past but the normal cut going into the first quarter, the calendar first quarter is very, very common. so, really, the concern would be the scale, is it out of the ordinary or not, and that is what people are looking at in taiwan. emily: if it is all just part of a cycle, adam, how much greater does the iphone 7

behind that turnaround, celgene is a big point of influence after credit suisse initiated coverage andtperform 149ng at a price target of dollars. so far, celgene is outperforming the nasdaq biotechnology index. betty: thank you so much. what a ride it has been. we were reporting that nasdaq lows today,at its but now it is in the green. all the big tech giants had big, big declines, some of them moving below their 200-day moving average. one unusual winner was twitter. at one point, this talk was up nearly 10% -- at one point, the stock was up nearly 10%. what gives? let's talk to an equity research analyst at sgm capital and also ,ur bloomberg editor at large cory johnson. i think there were rumors about twitter being bought, and news corp. came out with a few comments that they were not interested, but it sounds like some people are thinking twitter is in play. victor: i'm surprised it took this long for the rumors to start to circulate, but i think twitter is attractive at these levels. i think it is a unique asset. on a monthly basis, it touches all that 800 million users around th

think there will always be criticism of these figures, but this has been done by oxfam and credit suissend several other accredited experts. >> what do they achieve to put the report out, the rich are very rich, the poor are very poor, is that going to make a difference in policy making? >> i think it needs to do and to some extent it is doing that we have heard especially in this country from politician he across the board that inequality is something that is now damaging the economy and damaging society. i think those politicians need to catch up and actually do something to remove those damages but it is getting on the agenda and needs to be more. >> i think most of the things that have been highlighted is the issue of very, very rich people somehow managing to not pay tax. is that something that there actually has been progress on at all? >> there has been a lot of work done buy lot of people to try and address tax gaps. to be honest we don't know how big the tax gap is. because you don't know what you can't see. that is, a is big issue that there's tax hidden for example in the u.k.

bullish call here on amazon from credit suisse. urging investors to add to current positions.ncreasing the fiscal year estimates. credit suisse rebuilt the model to separate the aws services business from the e- commerce services. the capital intensity css to run aws is starting to level off. free cash flow should reset higher. also on the commerce side, there should be operating margin expansion because of the benefit from shipping loss moderation. >> all right. our under the radar call of the day is a name known for its name but maybe not the stock. dream works animation studios. fbr capital markets upgrading them to an outperform and putting it on the top picks list. they have a movie catalog and apparently very positive tracking data for cunnikung fooa 3. >> two is a legend. one was not good. that's it for "street talk" on a tuesday afternoon. always opportunities out. there the oil close coming up. could we close below $30 a barrel for the first time in more than a decade? we're going to find out in a few minutes. stay with cnbc. iall across the state belthe economy is gr

credit suisse 2.3%. the atlanta fed followed by a lot of people very weak, weaker still, morgan stanley, 0.5%. guys what we're seeing here is that the fed is able to hit that range, 35, 36, but it's coming amid weaker than expected economic growth and, of course, as you guys are talking about all day, that concern about overseas global economic outlook. back to you. >> thank you very much for that, steve liesman. all those concerns about the global economic outlook nefeedi into what is a shaky start for 2016. the dow posting its biggest first-day percentage loss in 84 years when it was down by 2.3%. now it's down by 2% but, you know, we're just talking a matter of points here. sitting at 17,062. we were below that 17,000 mark earlier on in the day. the s&p is holding onto 2000 right now. the nasdaq is off by 2.5%, and the russell 2,000, the small cap index, is down by 2.4%. there's some big moves in the currency markets as well. let's take a look at what dollar/yen is up to because yen does tend to be so

you hold credit suisse and pariaba in your portfolio with rather large positions.at at all on your radar? >> well, you have to look at their exposure and their lending book, and for both those companies really there's very little exposure. these are companies that -- they are companies that have broad exposures and where they lend. >> everybody will be hurt, but as we know, everyone consumes energy. i don't know for some reason we're ignoring the fact that a lot of consumers of energy are going to be a lot better off and the way it's going to be like a tax cut. you can't have it both ways. it just can't be negative or just can't be positive. there are both sides to the story, and the market today is just focussing on the negative. >> i think we -- >> there are positives. >> i think, frankly, we would be more believers in the positive side of that story if what you say actually showed up in the data, but when retail sales haven't been all that great, yes, auto sales have been fine, but when the data hasn't really shown up to prove that consumers are actually spendin

stephanie: china, ubs and credit suisse are going big in china and you've only got 1% exposure. how do you see things different than they do? >> we operate in china like many other places. anyot an institutional bank consumer bank and service high credit high quality customers and are there with the multinationals doing business. the world as they expand. we run a consumer bank where we are offering credit card products to what we see as creditworthy customers. stephanie: you are ranked number five in your investment bank. you've got some wood to chop. is a business depending on the deals, you are up and so weo we punch from 3-5 think we have a good backlog and m&a will stay active in will be in short -- an important role as growth stays tough if you look at the markets, maybe valuations got better. the europeans are leading into china and out of fixed income. credit suisse, ups, deutsche bank -- morgan stanley and goldman sachs, will that make fixed income a more profitable business? >> if you look at what's going on in europe, those institutions and that being constrained by l

credit suisse ceo gives his reaction to the volatility. >> europe is in the best position since 2010 and we actually have the same merging markets. >> drowning in oversupply. wti breaks below $20 barrel after a short lived rally as the iea warns after a further price collapse. our guests tell us the price moves are creating victims. but of course every change today we're in the middle of supply. >> dutch shells more than 4% on the back of the sliding q 4 profit as it works to complete it's merger with bg. we speak to them on the show today to get their take. >> and cheryl sandberg tells cnbc during a debate in davos that we're in a period of rapid change in technology. >> every technology that's ever been invented caused great fears and the questions that davos is trying to answer this year is how scared should we be or how vocal should we be? >> welcome again to street signs live from the world economic forum here in davos and the theme for 2016 is mastering the fourth industrial revolution. what does this mean for big business here? we've got start ups, disruptors, all represented.

credit suisse auto analyst is sticking by his bullish opinion. dan, it is great to see you. what is your take on why tesla traded down 7%. was it the tape, was it the fire in norway, which is one of the top markets out there, or was it the delivery number that came in at the lower end of guidance? >> yeah, thanks for having me, melissa. i think all of those things played a role. the markets didn't help. high multiple groewth stocks ha a tough day today. the fire, any time there is a fire with tesla, it causes concerns. if there is a structural issue. we don't think there is. i think they've had a good track record in terms of safety. and the guidance, or the delivery number, we thought, actually, was outstanding. if you look at the big picture, delivered over 50,000 model s. this year, up 60% year-over-year in the third year of sales. that just doesn't happen in the auto industry. and if you look at the fourth quarter, i think expectations at the time they reiterated guidance were for a miss. there have been a lot of concerns about whether tesla could increase production thi

meanwhile, credit suisse updated price targets on some consumer goods and tobacco stocks. what we're seeing is this is a clear currency play. in some ways they're revising their eps forecast but just modestly and in the real takeaways here they're citing relative weakness in sterling when you talk about it compared to the euro and dollar of course. that could benefit the ftse 100 companies. we're looking at imperil tobacco. that's an upgrade from 3800 and the out perform rating there has been held. a similar story listed in the u.k. as well. just ticking up that price target to 6500 with an outperform rating. conversely when you look at the european firms they're saying that companies that report in the euro could see a bit of a head wind when we start talking about the earnings season. listed at an underperform with the price target there at 58 compared to 59 euros. so not a dramatic change there. but they see that as an underperform as well. so drawing a line under the fact of how significant the currency volatility could be in earnings season. >> another interesting sto

bob parker, the senior advisor and credit suisse asset management. up next, find out which countries opec thinks will be hit hardest by prices. european equities are firmly in the green this morning. the ftse 100 is trading up over 2%. you have some of the other continental markets up 2.25%. we will take a break and be back very shortly. ♪ >> we should not underestimate the consequences of lower commodity prices or discount the vulnerability in terms of foreign exchange exposure. but i wouldositive see the potential for substantial shocks. guy: that was chairman clark schwab. our extensive coverage from dev us -- davos starts tomorrow. let's get you up to speed. here is nejra cehic. china's official growth figures came in below expectations with gdp figures rising 6.8%. the economy expanded and its lowest rate since 1990 and signals that further stimulus may be needed after a roller coaster year that saw a record evaluation and a 5 trillion stock market route. 16,000 is to recall vehicles to check their insurance. the carmaker's stock has fallen for

tom: i saw the facebook numbers in the first thing i thought was michael of credit suisse -- he wrote years ago. that's where we are -- the big win. vonnie: microsoft is also out today, moving between markets. satya nadella seems to be doing pretty well. analysts are looking for the offside to earnings, and also looking to see the intelligent cloud. there's always a discussion about clouds. tom: i can't keep track. we have paul sweeney in the next hour. vonnie: we do. tom: there we go. lacqua continues on the future of the city. francine: we can't keep track of clouds but we can keep track of the banks. let's get back to chris wheeler. chris, we were talking about deutsche bank. you put it very clearly that you don't see deutsche bank taking part of any consolidation phase. striking is last year we had someone new at credit squeeze and standard chartered -- you is best in class? -- who is best in class? >> it's difficult to say. ubs, who bit the bullet in 2012, lots of questions about whether they could do that as a full-scale bank, an they haved. may have a double-digit return on tan

you mentioned ubs and credit suisse retrenching to go after the asian customers.t is, there's only so much business. if you are running one of these cost is first and second is where you get revenue year. francine: in terms of u.s. versus europe versus the u.k. versus asia, it seems the best of value is still in u.s. banks. >> i think so, our capital markets are thankfully very robust. we had a record year for issuance in 2015. we will probably see that this year again even with the expansion of spreads with concerns about commodities and oil. that is the boon for u.s. banks but not so much in europe. they had been trying to get there asset-backed security markets to come back because banks are the only source of credit in europe and net has to change. to wheres circle back we are in these markets. there was a wonderful observation this morning and we will share this with you. which way does this go? does janet yellin move away from the boldness of the recent weeks m or doesario have to look at the moon will force and adjust? >> i think it will be janet. they are

suisse,ceo at credit the business is structurally quite profitable.vided they can go up and down. but they do not accept referring to bankers in the securities unit. where are we in this? is it a battleground for running banking businesses? do we need a business model that is more flexible, in terms of reiteration? all, just as aof preface, i think the remuneration structures we have are far too complex, which we can debate at another time. in relation to the bankers, there is absolutely no doubt that the view to oversimplify the situation -- this combination of policy failures, regulatory failures, and remuneration policies that the toks take advantage of expand. it is clear that the structures, frankly speaking, led to some pretty bad behavior. particularly trading at upper levels, and that clearly has to be dealt with. and it is, and there is a significant sort of reduction occurring. having said all that, it is very clear that you have to pay for the global skills that you need running these organizations. and you undermined you're a self if you d

because people outside of new york, people around the rest of the country, ddid not like tammany suisse got to dance quite the dance. there's a third issue in which he's very much shifty about. he had been a member of the wilson administration, undersecretary of the navy during world war i, a loyal wilsonian. and to be a wilsonian meant to favor the league of nations. and franklin roosevelt did, until january 1932 a gentleman named william randolph hearst gets on the radio out of los angeles and the blasts everybody, just about everybody. hoover, roosevelt, al smith. one guy after another in national power, politics. and louis mcinally how which franklin roosevelt's chief political adviser says franklin, what are they going to do about first? what he does is it gives a major policy address at a very prestigious venue, the albany county grange state in which he basically says, 1920 resolve the league of nations as an issue, but times have changed. ithere will not be a major issue in this campaign. see you, woodrow. so people wonder just what they can count on in terms of all these issues

francine: if you speak to the bankers here like we have, i was trying to get to a guess from credit suissere under so much pressure. he said there are risks, but at least one thing that is much better than 12 months ago is europe. it is together and it is looking better. crisis. not have a life economists, we are in the best position since 2010. emerging markets have a bigger upside, and the fundamentals out there. francine: this goes back to what nouriel roubini was saying. oil does give a little bit of a boost in terms of spending. tom: it is good to have these voices. i would say that the bankers, they are out in front of the other ceo's in terms of the better news from the major nations. francine: if you look at risk, when you look at the markets yesterday tanking, today recovering, we look at the impact of central banks, we look at china, europe, but other risks in europe, including the risks of the u.k. leaving the e.u. here is chancellor osborne. >> we want the business community to have its voice heard in this referendum debate. we do not want them to be on the sidelines because i

looking at the airlines, credit suisse said that airlines have a favorable risk reward scenario.ong theon least expensive in the s&p 500 and here are the top four. it is not helping with global growth concerns and the airlines are falling along with the rest of the transports. the transports have entered a bear market. that happened over the past few days but we see a 23% drop from top to bottom. this chart goes back to the beginning of 2014. we have seen the transport is declining. look at the same this is not a good sign for the was economy. transports have been below their 50 day moving average since september and the 200 day moving average below -- since may of 2015. some stocks get a benefit of the fed goes ahead with rate increases. julie: unless things don't play out. banku look at thekbw index, it's down today. the consensus estimates for earnings from banks are relatively stale. the biggest thing should be for the capital market banks. they are down the most today. jpmorgan is kicking up bank earnings reporting season. we could see banks benefit but look at the yield cur

as the credit suisse analyst says he expects them to 2016 asrm once again in long-term investments payy, starbucks shares are up right hind big tech names, as a point boosts to the composite index. the company says it is on track to open 500 stores in china despite all the recent market turmoil. you so much we want to take a quick moment to check in on markets here in the u.s. on the day.ining you start off with a bit of a rally. the s&p could not hold on to its gains and a big part of that has to do with oil prices. if you come inside the bloomberg terminal, you see the correlation between the two. the old we're looking at, oil trades be much all day, you can see it is a big -- a deep slide down. right around $30 per barrel. cities as we could see a to handle which means oil in the 20's. the s&p was the white line there and we saw the rally that did move back up here. take on aying to little bit of steam coming from china but could not hold on. you see now s&p and oil really moving overall in tandem. it is no surprise energy stocks are the worst forming on the s&p overall down by almo

credit suisse pointed out in a note today that the data that we did get out of china proved that theimulus from the pboc and the government did not really quite work. do you agree? that would be a sort of longer-term issue for the government. gabriel: i compare the situation in china today to where europe was in 2011 and maybe where the u.s. was in 2009. a lot of government stimulus has already happened. there's more to come in both reserve requirements as well as interest rates. it will're right -- take a bit of time to see improvement on the ground in terms of manufacturing. you already seeing it in the nonmanufacturing side. i also point to q3 earnings, which were very strong in china and certain sectors. i do think there is a lie -- maybe a 12-18 month lag from the beginning of the easing cycle. but you are seeing one of the most aggressive using cycles that china has implemented. that will inevitably result in improvement in earnings, which we have already seen. scarlet: we are at the start of a new calendar year and have been talking about how it's the worst start for chinese s

credit suisse, ubs, which japan -- stephanie: morgan stanley. erik: even goldman sachs is cutting. to make fixed income or profitable business for the firms like yours? at what is you look going on in europe, a lot of those institutions become constrained by leverage ratios. the leverage ratio constraint, or do we have scale or do we have a pathway to scale? you have seen people pulling back and really focus on those things. we think that creates an opportunity for us. we have an upscale presence could we don't have a leveraged ratio as a binding constraint. we continue to take share in those markets. erik: given at the same firms are prioritizing equities as they retreat from fixed income, does it make it more sensible for you to put your eggs in the fixed income basket and maybe not to be in the intense equities business? michael: we are going to continue to invest in that business, but we punch below our weight. erik: what do you do? michael: we have invested in technology, research hit to set the bar here, we are not shooting to display some of van number one. we have talked ab

penney being upgraded over at credit suisse. says it's not about the fundamental business case for the company. but a shift in messaging to prioritize a key down of the company's debt. and jetblue is being upgraded from buy to hold in part because of the pullback in the shares year to date. these are the winners, we have some losers on analyst calls to mention as well. darden was cut to underperform because of thes rich violation of going to this company and also some macroeconomic concerns. monster beverage got a call from citroen research earlier, remember that is the well-known shortselling research firm. he talked about how the company's valuation is credit rich given its prospects for growth. winnersg back to the again, wanted to point out some stocks that were at all-time highs today. facebook we mentioned already, but mcdonald's, shares are trading at all-time high. and so is campbell soup, interestingly. mcdonald's, what a comeback. -- iet: i haven't think haven't figured out what a griddle is.- mc julie: i don't know. s

we're watching jp penny and credit suisse is upgrading this one.ing, saying that j.c. penney is saying their top priority is to pay debt. it is going to be a challenge, and $1.2 billion without significant sales growth but 1 billion should be obtainable. jc penny is no longer sponsoring the oscars. >> they did? >> apparently and it cost them a boatload. the focus on debt reduction could be to maintain current share price despite multiple decay by shifting debt to equity. >> first time in 30 years are sears and j.c. penney going to beat each other to both of them are lying on the ground? third stock. not a household name, jacksonville, florida focusing on timber land. outperformed from the market and say we're not timber land bulls but we're talking spread, between the current stock price and net asset value of the land is too large to last and if it does last, analysts notes that it could be a buyout target, did cut the target on price to 26 and 27 but that's still 30% upside and 5% yield. >> basically the analyst is saying that the tim betterland

credit suisse saying it's a sign of growth for residential solar developers in the state of california. sunrun up 9.8% and solar city as well. >> the dow is up about 140 points, s&p about 12 points. >> take a look under arm. it is absolutely surging today, this after its strong earnings report this morning. the shares, look at this, up 22%. hear what ceo has to say about the quarter next. >> keep it right here for the storm of earnings due out less than an hour, amazon and microsoft and visa among big names leading the charge. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro. it started with a single connection. and the network was born. it soon grew from a luxury to a necessity. so at&t built a network just for you.

the analyst with credit suisse is forecasting smartphone 6 shipments will drop in the first quarter ofapple to sell 55 million of the newest version of the iphone. he is now dropping that to 48 million. that will drop apple earnings by 2% for the current quarter. >>> united airlines has announced plans to buy 40 new 737 jets. the announcement came as united reported a record profit for the fourth quarter. it saved more than $4 billion in fuel costs last year. also this morning southwest airlines reported its fourth quarter profits tripled in part because of cheaper jet fuel. >>> we like food. >> yeah. >> boy, if you are a calorie counter and weight watcher, i am going to show you your enemy. a restaurant in new york has created a monster milkshake. >> i am going to read the prompter. >> i got to have it. >> i can't look at the screen. it's a foot tall. has 1600 calories. there is a cotton candy milkshake. and pretzel sticks. other milkshakes contain chocolate chip cookies, candy apple. new yorkers have been lining up at this restaurant. it's the black tap craft burgers and beer. they a

interesting call from credit suisse reiterating the outperform rating and expects them to post strongnflows. they're getting cautious because blackrock has outperformed peers over the past six months. they're also 25% more expensive than peers. the rating doesn't change but the analyst says there may be more attractive opportunities in something like a wisdomtree. >>> stock three, the real f.a.n.g. diamondback energy. the only oil company anybody loves. cowan and company upgrading diamondback to an outperform. $74 from $71. they say the stock offering yesterday, full year guidance reduced risk significantly. not a lot of debt. company has the highest prehedge margins in their coverage universe. >> marriott and extended stay. both stocks hitting fresh 52-week lows on down grades from mkm. this is a broader call here. it's a downgrade overall of the lodging sector. the analyst says even though lodging stocks are down 20% over the past 12 months, there could be more down side in 2016 because mkm's chief economist is getting more cautious on the macro environment. >>> finally, how about m