>> lloyd blankfein, always appreciate your time. thank you for hanging out with us in the cold this evening. >> this is -- i would call this a low overhead operation. >> well, i know some people who think it's a high overhead operation. but thank you. >> yes. >> we're going to send it right back to carl back in new york right now. >> thank you, guys. >> thanks, guys, andrew, becky, joe, lloyd, thank you. fascinating to listen to lloyd talk not just about the environment regarding growth but also the migration of goldman executives to public services and more. dow has added to the losses in the past few minutes. down 51. still got to get through the president and janet yellen this afternoon. >> also interesting to hear blankfein talk about his attitude toward a trump presidency. he wants to like it. >> headquarters and "the half." >>> carl, thanks so much. welcome to the "halftime report." i'm scott wapner live from washington today where in just 48 hours donald j. trump will be inaugurated at the 45th president of the united states.

lloyd blankfein was also asked if there is anything he would like to see in terms of regulation being changed. lloyd: people have been interpreted as for regulation, against regulation -- i think in the trauma following the financial crisis people wanted to make sure, at all costs, we never got into that situation again. well, if you are going to guarantee we never get into that situation again, ever, ever, ever, you put in belts and suspenders, and you reduce the productivity of the united states to the return of t bills -- the treasury bill. nobody wants that. it is not a shock to me the pendulum would swing far in one direction and over time it would come back. there was a lot of reluctance to go back and open these rules for amendment because everybody was afraid that once you opened it up it would be another free-for-all, and nobody knew how it would come back, so nobody wanted to open it up. i think we're going to open it up. it is a long time afterwards. cooler heads -- look, after the great depression, which was in 1929, there was a securities exchange act of 1933, 1934, 1935,

morgan's jamie dimon, goldman sachs ceo lloyd blankfein.k even for the dow for the year's 19,762 and just about 20 points above that. watching that closely. back in a minute. l orothec. notr atedages orothec. persedh h ro tne s notr atedages >>> busy day on capitol hill for the president-elect's cabinet picks. today's hearings include nicki hailey, scott pruitt at epa. commerce secretary designate wilbur ross appearing before the senate commerce committee and tom price trump's pick for hhs secretary set to go before the health education labor pension committee. expected to face tough questions about trades in health care stocks, axios yesterday, guys, had some reporting on concerns within the team about mnuchin bringing in extra people to help him get prepared in advance of the tough questioning he'll get. >> look, there was a very long article about mnuchin and, you know, you could read that article two ways. i mean, i think there are a lot of banks -- a lot of larger banks were into the fdic saying please let me buy these institutions. i

let's get to our editor in chief and lloyd blankfein. >> thank you very much.king to bloomberg. brexit.gin with you have now heard from theresa may, she was to be out of single market. yours said you wanted to wait and see. -- you always said you wanted to wait and see. inoculatinge always the devil ino see the details. i don't think we will need two years to make whatever adjustments may make, -- we make, so we are watching. we will obviously have to comply and follow it, but i understand completely at this point, why at this point, she would start with a clean sheet of paper and work from there. it, most think about negotiators don't start by saying all i don't want to be part of a single market. lloyd: if you are in the development business, it is much easier to start with a greenfield that it is to take an to thelding, conform foundation and the heights of the floors and refurbish it. you end up with a better product if you start over, but it can be more expensive. as you pointed out, this would not have been a position we prefer to be in, but we adapt to r

i mean, lloyd blankfein did issue a statement.ink lloyd blankfein is saying, listen, we're okay. we're okay. now, no ceo can protect anyone from anything if you're a wrongdoer. >> well, especially in tech where an indian immigrant at apple, the point made over and over again over the weekend was a son of an immigrant, right? a lot of that's baked into the culture. >> right. i think that's more than you would get at a typical company, a midwest company that does metal bending. it's not really based on that, but i think a lot of ceos are trying to calm their workforce down saying don't worry, you're going to be fine. i think it's pretty jarring. >> we are expecting some video from the white house of the pool spray we mentioned a moment ago. headline out of reuters, jim, as executive orders will be taken today to begin reducing regulations, right? little more market friendly. >> yeah, i'm certainly more comfortable opining on those because what matters is earnings per share because earnings per share drives stock prices. when you see

a little after that, goldman sachs chairman and ceo lloyd blankfein also live from davos.p this morning on "squawk on the street" and "squawk alley." also, friday we are live from washington, d.c. for the inauguration of the 45th president of the united states. lawmakers and business leaders gathering in d.c. for this historic day. "squawk box" will be there to bring it all to you with special guests through the morning. that's starting at 6:00 a.m. eastern time on friday. >> that goldman chart is unbelievable. it's almost like a thermometer or a barometer of animal spirits. you know what i mean? >> in the meantime, the financial services industry continuing its shift to what's called mobile first as consumers become more comfortable paying online. for more on this trend, the health of the future of mobile payments, let's bring in the ceo of paypal. we always love seeing him out here. last time you did not wear a coat, if i remember. >> i learned my lesson. >> our last guest asked us to ask you what kind of pants you're wearing. >> 511. >> so he's a levi's man. >> all the

lloyd blankfein. >> lloyd blankfein. big consumer companies, doing it because they feel employees are affected, families are affected and they'll speak out. it will make the relationship between corporate america and the white house more complicated than just some photo-opes at the white house. >> ian bremer tweeting yesterday, a clear point, leading up to davos, it was clear that every business leader didn't want to say anything to ann annoy president-elect trump. that has spun on its head. kind of a strength in numbers type reaction. clearly driven by the fundmentals. some have started speaking out, and now some are more confident where two yeeweeks ago no one wanted to say anything because they didn't want to be singled out on twitter. >> maybe they're speaking out because president trump has given them a voice. the first two days were meetings with manufacturers, autos and business. elon musk soliciting peoples advise so he can bring it to the council. ceos have a voice. we're watching to see if they peel off from tr

we just saw lloyd blankfein from goldman sachs, there's a spirit of optimism. i was at 48 hours ago i was in davos, switzerland. i met with ceos, all of which are super positive about president-elect trump. we had the monsanto guys last week and their are excited. they say, wow, we have a business advocate, someone with a horse sense for business, commercial instincts. recognize that we can do good, make profits at the same time, grow the economy, and central to all of this, help working class families and middle class people. >> there must be some unease though in the corporate community with what they're going to get from this president. >> yeah. >> you look at what the market has done since the election. sort of ripped higher. you used to sit with us often and talk about the markets and why they've reacted certain ways around the relationship with politics. i just wonder, just given what the markets have done as it had this great advance and hit a pause and now the dow is at a six-week low. if that reflects some of the trepidation about what the administrati

goldman sachs ceo lloyd blankfein is the only bank boss so far to speak out against the executive order>> this is not a policy we support. being diverse is not optional. it is what we must be. operatingle the committee did not explicitly condemn the ban. year the statement was quite strengthened by the diversity of those around them. some ceos were more outspoken. his company did not support trump's visa ban. everyone celebrates the power of diversity. those being threatened by the banningxecutive order refugees, as well as visitors from 70 majority muslim countries. staff he vowed to hide 10,000 refugees over five years and to neither standby nor stand silent, which he said called into question the american dream. >> trump's executive order heads up a flurry of reaction, not just in the u.s. but obviously in majority muslim countries affected by the ban, including iran. -- a.s. and iran saw is so historic sign relations. some students who are set to enter the workforce had once dreamed of going to the u.s. say they may now look elsewhere. me want to goike abroad and continued her educa

live interviews with jpmorgan margen chairman, jamie dimon and lloyd blankfein, that's on squawk on thetreet later this morning. james gorman joins us tomorrow. joining us now is jim coulter of tpg. good morning. thanks for joining us. >> good morning. pleasure, although cold to be here. >> we'll be warmed by the context of this conversation. interest rates have gone up. is that a good thing for the economy or are we starting to see it's not? >> it's a question of interest rates are just going up or followed by growth. growth is good for the economy. right now we're in a period of uncertainty. i think there's more speculation than knowledge in the markets today. >> so you don't share some of the enthusiasm and optimism out there in the confidence surveys, whether it's business, home briders, small business, and investors with the stock market at near record highs. >> i came into the year reminded of one of my favorite quotes, which is f. scott fitzgerald, he says the test of a first rate intelligence is keeping two opposing ideas in your mind and still function. the two opposing ideas i

we are here with lloyd blankfein who has been with goldman sachs for 10 years. don't think any of your head predecessors stayed that long. lloyd: i'm sure it seems that long but they didn't say that long. david: let's talk about your early life. you grew up in new york city. when you were growing up you didn't have a lot of money. was money something you thought about when you were growing up? what were you interested in when you were a young boy? lloyd: i didn't think about money because we went to school with kids like us. so i didn't know -- i don't know if it would have changed me, had i known but i didn't know the range of possibilities. i grew up in brooklyn. david: your father worked in the post office. lloyd: they were colleagues. david: right. their job was to file the mail. sort the mail. so you weren't wealthy. you went through public schools. but enormously did pretty well because you were valedictorian in high school. so you realize you probably were smarter than the average student. lloyd: i knew that ranking high in my school, i was certainly good

lloyd blankfein telling them from was no, this is on a policy we support.to minimize such disruption to the extent we can within the law. we are focused on supporting colleagues and families who may be affected. is different than jpmorgan, who said diversity is good, but didn't express an opinion on the policy. citigroup and bank of america didn't even touch it. >> businesses should be commenting because nobody seems to know what it really is, and nobody in the business community wants to see anything bad happen with immigration. the irony about our economy is that sluggishness is primarily due to demographics. if you loosen immigration in general, the right kind of people, you really have a big needle mover. that's not going to happen. these different ceos and how they are reacting, you are trying to say something politically correct and call me. me --all me -- and call and calming. oliver: theory interesting and complicated stuff. robert albertson, and sandler o'neill. thanks for joining us. scarlet: the white house says today is the first step in scaling

we are here with lloyd blankfein who is been the chairman and ceo of goldman sachs for 10 years. don't think any of your head predecessors in the last two decades stayed that long. lloyd: i'm sure it seems that long but they didn't say that long. david: let's talk about your early light if we could for a moment. you grew up in new york city. when you were growing up you didn't have a lot of money. was money anything you thought about when you were growing up? what were you interested in when you were a young boy? lloyd: i didn't think about money because i went to school with kids like us. so i didn't know -- i don't know if it would have changed me, had i known, but i didn't know the range of possibilities. i grew up in brooklyn. david: your father worked in the post office. lloyd: they were colleagues. david: right. my work in baltimore and yours working new york but their job was to file the mail. sort the mail. so you weren't wealthy. you went through public schools. but you obviously did pretty well because were valedictorian in your class in high school. so you realize you p

look atong them, let's goldman sachs ceo lloyd blankfein i.e says this is not a policy we support. think of is not optional. goldman sachs rarely comments on a sitting administration and after goldman sachs a lot of people are known to go into the government sector. lloyd's replacement is now in the white house -- a softer approach. stress benefits of national security, said he was grateful for our country being safe and it is those strengthened by the richness of diversity. also we have blackrock ceo larry fink weighing in. this is the world's largest money manager here. also doing a little back and forth talking about security and also talking about the importance of due process as well as individual rights. those are some of the banks that have weighed in. wells fargo as well as morgan ,tanley say they are monitoring but bank of america and citibank has so far declined comment. they are just of the latest in a series of other ceos who have come out a little more swinging, especially in the tech industry. look at all these names. apple, goog

goldman sachs lloyd blankfein said this is policy we do not support. jeff immelt saying he is concerned. boeing, ford, gm are silent bit. stuart: that is a good point, industrial companies saying virtually nothing. financial companies with exception of goldman sachs, are saying nothing. the big name technology companies saying this might hurt us. liz: tesla elon musk, business advisory panel. stuart: what am i missing here? >> i don't think much. i don't think these technology companies are relying on syrian refugees. we still welcome the most refugees, immigrants than any other countries there. is benefit having new americans come in. none will change. this is temporary and it is limited. what is troubling are these smaller companies, these sharing companies like bnb and uber and lyft they seem to be in their own bubble. the message something tone deaf, in order to run a business you have to appeal to the entire base of customers. stuart: there will a backlash. ashley: if starbucks hire 10,000 people, why can't they put americans back to work who love

goldman sachs ceo lloyd blankfein also discussed automation and its impact on the global economy.ustry and our every other industry, in the short term, technology costs jobs. value is created across the board. if you have taxis circling idly and then you come up with a method of making it more efficient so they are never idle, they are showing up places always carrying a passenger, so you need fewer circulating, that means there will be fewer circulating -- there will be fewer jobs. the value of the company that creates that opportunity, that efficiency is coming out of labor and is going over to capital. the investors in the company that make that system are enjoying the benefit of value creation that's coming out of having to pay lower cost and fewer jobs. that's only in the first brush. servicesthink of new and new things to do in those create more jobs in the future. caroline: coming up, it's the biggest deal in olympic history. alibaba joins the ranks of coca-cola and samsung, but at a steep price. this is bloomberg. ♪ atoline: the latest selfie has skyrocketed. it's been a h

continue its coverage from devils, switzerland, speaking with the goldman sachs chairman and ceo lloyd blankfeinto that conversation at 6:00 a.m. eastern. "all due respect" will add special episodes all this week on bloomberg television, taking a look at the key issues facing the incoming trump administration. up to bloomberg special coverage of president-elect trump's inauguration on friday. this is bloomberg. ♪ caroline: now back to our exclusive interview with susan decker. in part two of our conversation, i asked her to reflect on her time as president and what she thinks of the $4.8 billion verizon deal. susan: i think based on where yahoo! was in the last year, he was an inevitable outcome that it was supposed to be sold. the fact that it was sold to verizon in some ways is very logical, they own aol and there's probably a good consolidation opportunity to look at the properties a well has and the ones yahoo! has, which ones overlap, cut some cost. i can see the business logic behind it. caroline: why was it inevitable? susan: because the core issue at yahoo! is that no administration that

he blasted hillary clinton's paid speeches and featured lloyd blankfein. he reached into the bank to tap some of the top talent. a lot of people are the street are saying goldman sachs is back. after being punched for all of the years as the face of the crisis. >> i'm not sure it is back. back from what? >>> three days to go until the inauguration with the world listening closely to every word that the president-elect speaks. in last few days, he made comments about nato and china and angela merkel immigration policy. the outgoing secretary of state, john kerry is weighing in on the president-elect's statement. >> i thought frankly it was inappropriate for a president-elect of the united states to be stepping into the politics about the countries in a direct manner. he'll have to speak to that as of friday. he's responsible for that relationship. >> as for merkel, she said she will wait until after the inauguration to engage with donald trump. >>> on tutgoing cia director jo brennan taking a shot at donald trump. he insists he is not responsible for the le

on the blunter side, goldman sachs ceo lloyd blankfein saying this is not a policy we support.ng diverse is not optional. it's what we must be here. it's interesting that goldman sachs really takes a stand against sitting administrations. usually they send their own employees to become -- ex-employees to become employees in the white house. what we are seeing here with three: -- with gary cohn. jamie dimon, a little bit of a softer approach, says he's grateful for the hard work about national security, but it is also strengthened by the diversity of the world around us. jp morgan did not express any opinion on the ban, either for or against. black rock's ceo weighing in -- blackrock's ceo weighing in, toeing the line, saying they want to have respect for due process as well as individual rights. a couple other banks that have not been weighing in, wells fargo and morgan stanley. they say they are monitoring the ban. citibank and bank of america have so far declined comment. yvonne: we are seeing financials fall in asia following what happened on wall street overnight as well, d

how long do you see lloyd blankfein remaining as chairman and ceo?ave a very, very deep management bench. certainly we were doing just fine, and we all would have been happy to continue on running the business exactly the way we were. one of the things that's happened in the past is people have left for different reasons, whether to go into public service or whether to do something else. when it happens, it creates room for others in the management structure to move up. that's part of the tradition of goldman sachs. that's what happens here. i'm honored to be a part of that tradition. the team that's now moving up because of the leadership structure has worked together for 15-plus years. so all that will continue. lloyd is the ceo and running the firm and doing a really good job as far as i'm concerned. >> david, great stuff. thank you very much for joining us. congratulations again on the promotion. david solomon, president and co-coo at gol man sachs. >>> coming up, much more "squawk box" still to come from new york, including breaking economic new

goldman sachs ceo lloyd blankfein says he won't find fault in donald trump if you renegotiate trade agreementsvor u.s. interests. policies onoved the taxes, regulation, and infrastructure. trump has picked former and current goldman executives to serve in his administration. thatu look at the policies trump has committed himself to, they are quite stimulative and market-supportive. spending on infrastructure, lower tax rate, removing some of the regulations. those are all quite stimulative. again, stimulative against the status quo, but far more stimulative than what people were expecting to happen had the democrats won the election. haidi: jpmorgan has increased its ceo's compensation by 3.7% to $28 million. jamie dimon received a combination of salary and cash bonus. jpmorgan has become the most valuable u.s. bank by market cap. into a fatalion accident involving teslas autopilot system has found no defect in the equipment. the driver died when his car hit a truck crossing a florida highway. regulators say there's no safety defect and no need for further inquiry. global news 24 hours a day p

going fine -- lloyd blankfein mentioned this about goldman sachs as a technology company.ndwhat jeff immelt is general electric. one of the hallmark moments of december was the passing of john glenn. you and i both grew up in space families, if you will. i was up in rochester with the kodak, and you were among the grumman people of long island. here was the icon of a generation truly, and it meant fearless innovation, testing, and i mean this with the immense respect for all risks taken. have we lost the ability to take the risk as a nation? abby: i fear, as a nation, we have lost a great deal of that. consider for example that many of the large expenses by the government going back to the early portion of the 19th century had to do with funding research that may or may not pan out, the basic research and so on. we don't do that in the same extent -- tom: we don't fail like we used to. abby: we are not willing to fail. it is a great way to express it. it is only the government that can find that kind of thing. when i say government, i am referring to government everywhere,

lloyd blankfein saying we could be at the beginning of a new cycle.is realistic from an economist point of view? this is a fascinating discussion, a economist looks at this saying what is the potential growth rate. that's driven by increase in labor inputs, increase in capital accumulation and productivity. if you are going to get from 2%, which is potential growth at the moment, to 4%, one of those three things has to do the heavy lifting. it's difficult to see how you get there. what i like about that, okay, i can pull it from pieces, but it's aspirational, setting the bar high. something that could unleash animal spirits. it will also be tough to get to 4% if you go that protectionist route. if you belive in the 3%, 4% route, it means you don't go the anti-trade route. >> you mentioned labor, we won't see jobs go down significantly, unemployment go down significantly. could this be spending that doesn't deliver and the debt level goes up with it? >> on the labor market side, mr. trump is making a play on the participation rate, which has fallen 3%

he featured goldman ceo lloyd blankfein. his last word of the campaign was the video ad very gloomily talking about goldman sachs. he reaches in and hires a bunch of people. >> apparently it was a recruitment video. >>> three days until the inauguration. the world listening closely to every word that the president-elect speaks. in the last few days, comments about nato and china and eu and german chancellor and immigration policy. he called it catastrophic. now secretary of state john kerry is weighing in on the effects of the president-elect's statements. >> i thought frankly it was inappropriate for a president-elect of the united states to step in to the politics of a country in a direct manner. he'll have to speak to that as of friday. he's responsible for that relationship. >> as for merkel, she said she will wait until after the inauguration. >>> trump and pence head to washington today ahead of the inauguration. no details released about their schedule. the trump transition team is trying to soothe tensions with the a

thecabal criminal elites stealing from the working class and the h lee decimate literally showed lloyd blankfein. in the last few weeks, he has nominated several from goldman sachs. it's about half a dozen people from goldman sachs. that might be reassuring on wall street. hand, it's a remarkable departure from the populism of the campaign trail and i think it will put steven mnuchin under pressure today. about: what do we know his stance on a stronger dollar or china or regulations or even on the mortgage market? i think the new administration is feeling its way through a series of conflicting policy initiatives they have proposed. the border tax adjustment or an import tax or tariff. economics behind that assumes a stronger dollar to offset the tariff war tax that would be placed on imports. --that it does not improve increase the cost of goods. you heard the president elect the other day say i'm not so sure i am a strong dollar guy. they are here to promote exports and a strong dollar is contrary to that. i think they are feeling their way between campaign slogans and promises and actual hard

not just mnuchin or abandon, there is also gary cohn, the number two at goldman sachs behind lloyd blankfeiney were sort of co-heads of goldman sachs for a lot of the relevant crisis years. he is now the chief economic advisor to donald trump, the head of the nec. jay clayton, goldman's lawyer. he worked for sullivan and cromwell, but he represented goldman. anthony scaramucci, another x goldman-ite for now a principal trump adviser. there are at least five high-ranking people in the white house whoever relationship with coleman sachs. this is a company who he specifically denounced during the campaign. juan: i want to ask about russia. the the weekend, we had controversy wiwith john lewis saying he does not believe donald trump is legitimate president part because of the russian meddling. you raise the issue that americans are forgetting the u.s. role in meddling in internal russian politics in the past. >> people might want to look back at july 1996 at the cover of "time" magazine that said "yanks to the rescue." it was about how we sent american advisers over to save force yields and -- o

we are getting more news today about lloyd blankfein saying to employees that their business could beby the travel ban. what is your response to them? are you looking at h-1b be next? >> i wouldn't call it a travel ban. it's a pause. a hundred 2120 days. alix: but boris, as ceos are concerned, particularly in silicon valley, particularly about hiring overseas are you looking at h-1b be next? individuals, can you tell the anything about h-1b these us? -- vias? >> seven countries have argued that identified a state sponsors of terror. let's not blow this out of proportion and make sure we are making america safe and strong. alix: set is that media ministration is not looking at h-1b visas to constrict them in any way? >> we are looking at all options to make sure america is safe and secure. alix: so that's a yes. >> that's not a topic i will be talking about right now. what i will be talking about is a productive first week the president had. alix: so what do you say to the ceos who are worried? >> what we say to them is that take a look at the facts of the executive order, not what's p

we will bring you interviews with jamie dimon and lloyd blankfein., ceo of morgan stanley and brian moynihan of bank of america. we have everyone in the lineup. the white swan about to reignite growth in europe? this is bloomberg. ♪ oliver: department of justice heads are holding a news conference on to cut a -- takata . they pled guilty and agreed to pay $1 billion to settle in investigation into their exploding airbags. shares in the u.s. are soaring on the news that this could be moving behind them. up twice as percent. are talking about china. take a look at my bloomberg. we have data overnight out of china and exports which is the yellow line saying 6.1% in december. imports which is the white line rose at less than half of pace. this data highlights the uncertainty and challenges that china faces with president-elect donald trump appearing to take office next week. joining us now to discuss the outlook is the chief economist at cambridge investment which has $83 billion of assets under management. thank you for joining us. and looking through y

jpmorgan and goldman sachs are down 1 1/2%, roughly, this on the same day we heard that lloyd blankfein, ceo of goldman sachs, basically said and put a message out to his entire company that it is not a policy we support pertaining to the ban on muslim countries, temporary ban. so that is something that is also front and center. we're waiting on the fed. prices going up shows stronger economy. back to you. neil: nicole, thank you very much. leaders are not parsing through fine points on the travel ban from donald trump with the seven countries involved, never mind they don't represent more than the 40 muslim countries on the face of the planet. it has been deemed anti-muslim. that is coming from the governments of france and germany and italy. even england, which said this wasn't properly vetted. all right, so foreign leaders aren't liking it. to former vice chief of staff general jack keane what he makes of all of that. they're all pouncing, saying same thing, general, not right, not thought out, good, you say what. >> radical islam is global jihad. attacks and killings on the rise. ne

. >> i felt lloyd blankfein is probably sitting back watching the giants lose and say -- i just threwhat in as a completely gratuitous reference. >> yes, you did. >> but how much do we have to do here? >> took you about 30 seconds -- no, actually, we're two minutes into the show. >> i tried to get it in earlier but you started talking about the downgrade. threw my game off. >> i did talk about the downgrade. but goldman has given us plenty, hasn't it? >> it's given us all she's got. it's a scotty situation. not scotty wapner which i will be on again today for another gratuitous plug. >> i'll set my vcr. >> how do you program a vcr? we had the momentum going into -- that moment on friday, where do they get these hats so quickly? >> they've had them ready. >> i have an eagles cap. >> still waiting on that one. >> yeah, that's -- >> one thing both of these goldman calls is a reminder of forex head winds, right? >> yeah, it's about time. holy cow, people have really overlooked this situation. in the zeal to like what's going on, we forget that the numbers have to come down for a lot of th

are you taken aback a little bit by lloyd blankfein and their reaction to that order?use business relies on predict ability and transparency, and at the moment, people are confused as to what that means. the reason the man was elected is because that segment of america is fed up with consistency and transparency of the elitists, including the business elitists, with business as normal. way anybody expects anything different. this man is doing exactly what he said. he is communicating in a harsh way, but he was communicating that message to get elected. jon: we expected something different last year. respectfully, people like you would say to expect nothing different. why should people have expected something different? >> what is it that's upsetting at the moment? the policy of immigration -- if you talk to the arabs themselves , of course it's a ban. but saying we are going to have a timeout and go back to our country counterparts and our allies in that part of the world, and we are going to say you have to help us, it's not refugees who are causing the problem, it's

went after lloyd blankfein. of course gary cohn, steve bannon, steve mnuchin, alums -- >> a long tradition of goldman sachs being involved in government. >> but as you just said taking him seriously, not literally. goldman is a great example of that. >> that is the challenge of how you parse that. >> here's mitch mcconnell, of course. some argue, john, the most powerful republican in washington. he has seated power momentarily until he decides to pull it back. >> there you see elaine chao as well. >> loses power if he's serving under a president of the other party and then his other party comes in. you're the most powerful member of the party, but when you're guy is you have to take direction from him. so mitch mcconnell, yes, he's got power. he's going to have to figure out how to accommodate democrats. but he's also going to have to learn to take signals from donald trump. and is he going to do that? is he going to try to fight him? same with paul ryan. >> kushner family here. on camera right now. also saw ear

lloyd blankfein from the world economic forum. this is bloomberg. ♪ david: it is 1:00 p.m.rk. i am david gura. vonnie: i am vonnie quinn. ♪ vonnie: we are covering stories from san francisco to minneapolis at this hour. people are watching. datators weigh economic and corporate earnings. treasury yields are higher and the dollar is gaining since yesterday's trade. are slumpinggets the most in five months after the company cut the fourth quarter and whole year forecast. holiday sales and bad news for kohl's and macy's. maces to a five-year low. israel's ambassador to the united nations, will discuss eu relations from the old administration and the trump administration. julie hyman is here. julie: not much change in stock today. the dow is doing the worst. pulling back by 51 points or 0.25%. in the last hour, very little change. very little change to the downside. what is moving and him major averages? we are seeing green, significant green of the month -- among metals. the senate hearing on confirmation hearing for commerce secretary and said we need more focus on tariffs fo

. >> i don't understand whether it's brian moynihan or jamie dimon or lloyd blankfein wo cho come on said this, you think they're plaflat out wrong and dt understand their own business? >> yes. that's a strong statement. they're definitely correct that a rize se in interest rates wil lead to a rise in earnings, no doubt about that. but will the banks hold on to those earnings. if you look at the balance sheets, they won't. why don't they? banks have huge portfolios of financial assets. those financial assets go down in value as interest rates go up. in the fourth quarter what we saw was a big increase in earnings in the banking industry, partly due to the increase in interest rates, but every one of the big banks saw a decline in the common equity. why? because their financial assets dropped precipitously in value. in other words, you have a big piggie bank. in that piggie bank you're throwing in all this money coming from the higher interest rates. the problem is that piggie bank has a huge hole in the bottom. and you are losing that money because it's flowing out as the financial a