bank stocks are active after the basel committee on banking capitalion's announced requirements.bs. this stock is on the move after the ceo denied that they will spin off their investment banking business to meet regulator demands. ♪ >> welcome back to "on the move ." i am francine lacqua at bloomberg european headquarters in london. these are the bloomberg top headlines. he will testify today before european parliament lawmakers. she is said to join the board of the ecb from her current edition is vice president of bundesbank. at the expense of its monetary policy clout. will curtail its nuke activities under a deal with world powers. in return, iran will benefit from some sanctions relief and the start of a 6-12 month timetable to reach a permanent accord. the deal still faces skepticism in u.s. congress. lawmakers are still pushing for more sanctions. thai protesters began blocking major roads in bangkok. offnstrators also cut access to a complex last night. the government says it will deploy 20,000 soldiers and police to combat the blockade. the fashion spotlight moved from l

the capital requirements which is the implementation of basel three. we reached an agreement on supervisory role of the ecb which stars as of this year. then we which an agreement on the mechanism throughout europe. not just the eurozone. including rules which are fundamental to sustainable banking. finally, an agreement on a resolution framework. it includes a resolution fund. that will start as of 2016. it will be the last resort in a process of dealing with banking risk. it is a last resort. the first one as getting the balance sheets up to scratch and having good supervision. as a necessary, applying the rules. that is how we will get to the banks healthy and contributing to new growth. >> a very briefly. -- at therns you out outset, the top priority that the eurozone faces? functionb effectively as a euro area advisory without a central bank failure agency, is that possible? >> there will be an agency. there will be a banking resolution authority as of 2016. and preparing in advance, we will take the banks through the resolution -- i am sorry, the

in june, the basel committee told the bank said the way they may calculate leverage ratios. make them stricter and force banks to set aside more capital and invest or gamble with the less money. well, they did an about-face for the last 24 hours saying, no, in fact, they will keep the rules as they were. ed is obviously positive role -- news for shareholders and we see it in banking stocks today. while the rules may have made the banks safer, not changing the rules as they have suggested they would and now they are saying they no longer will, makes it easier and good times for banks to make honey and has money to shareholders. >> thank you very much, indeed. ryan chilcote. >> moving onto mna and an energy consulting company agreeing to buy foster wheeler. our bloomberg feels reporter matt campbell joins us with more details. we see a little bit of m&a in 2013, not as much as we were thinking. but 2014 seems like a nice start, especially for oil services. >> that is a bit of action in the oil services it another company rumored to be for sale samero, rumored to be the that's

what is basel besides a city in switzerland?>> it is an attempt to have common capital rules the goes back to the 1980's. >> have the fdic chairman -- they have said the large sophisticated banks will find a way to get around these. >> they always do. what you are talking about is an incremental push back or it overall, the regime is very strict and restrictive on credit. we basically shut down a lot of the asset securitization market. that has not come back at. the changes made by fdic -- >> you argue that this will make banks more like utilities. why is that a bad thing? >> the thing i worry about with the volcker rule is that we told the banks they cannot trade for their own account. we sequester that capital in the bank. if you want to go down that road, let's divide the bank. >> one only -- >> we are. >> we are not charging them. we are paying them. >> you are charging them more than you used to. it is punitive for a bank to make a mortgage and hold a portfolio. >> i want to get in front of a number of pundits. can you pred

the basel iii framework also includes liquidity requirements designed to mitigate excessive reliance on global banks on short-term wholesale funding into otherwise constraining risks at those banks. further steps to toughen the oversight of large institutions and to strengthen the financial infrastructure, for example, by requiring central clearing with greater transparency for the trading of most standardized derivatives. oversight of the shadow banking system has also been strengthened. for example, the new financial stability oversight council has designated some nonbank firms as systemically important financial institutions or sifis by the federal reserve. in addition, measures are being undertaken to address the potential instability of short-term wholesale funding markets including reforms to money market funds and the triparty repo market. of course, in a highly integrated global financial system, no country can effectively implement the financial reforms that i've described in isolation. the good news is that similar reforms are being pursued throughout the world with the ful

quest for money and power and found both in the world's largest agricultural chemistry corporation in basel. zinc and is soon going to responded to an offer we made. as we proposed giving the company the commercial rights to our product. lines and if in the. the company would support our humanitarian project via it is just. as for. but a sensitive issue remains where is the borderline between commercial and humanitarian use. our goal was to allow all poor farmers to take part free of charge and of course it was in single interest to define as a poor as narrowly as possible because they wanted to potentially make money. in addition his own we agreed upon a definition and if the rice farmer was making less than ten thousand dollars a year with the golden rice that was still considered humanitarian assistance to. sink in to improve the genetic technology the number of foreign genes in golden rice was reduced from nothing to two a corn gene and a gene from a bacteria. has founded the golden rice humanitarian board which was to guide golden rice to world wide success. adrian to block a former em

banks leading as regulators decide to water down basel's debt rules. >>> give diplomacy a chance. president obama warns against imposing fresh sanctions on iran after it completes its deal with world powers to halt its nuclear program from next monday, sending crude prices lower. >>> inside the bull's-eye, weeks after the retailer was hit by a massive data breach, target's ceo speaks out. in an exclusive interview with cnbc, he says he's confident his stores are safe and secure. >>> and thailand at a standstill as protesters put a stranglehold on bangkok blockading major intersections in the heart of the city. >>> you're watching "worldwide exchange." bringing you business news from around the globe. >>> well, if you're just tuning in, thank you for joining us bright and early here on the show. let me give you a look at how the markets are faring ahead of the u.s. open today. and as you can see, we're looking like we're going to see a lower open, though there are a few hours to go yet. as you can see, the dow futures indicating points lower by around 36 points. the nasdaq indicati

the basel committee on banking supervision plans new rules for the backs and these rules i'm going to be less strict less rigorous than what most people he had anticipated this is of course good news for the balance sheets of the banks the banks will be able to continue to give out loans to sleep. many people hid out with the new rules would help the stability of the financial sector as a whole. conrad is backing track cyclists taken and then add the numbers clean a bit more detail possible stars an author jenny when it acts as a pill playful cent to close at nine thousand five hundred and ten. here are some safety was also high on that saying of course and actually has one hundred and eleven trading is still underway in new york when the dust falling right now it's at sixteen thousand three hundred seventeen points and you're at it waiting for one delights as he seeks sixty the abuse central bank is trying to make a life filled in on the qantas faces falling lost his revised five euro notes. now a ten euro bill is today in september the new bank now a note was unveiled in frankfurt t

few earning levers remain besides selling off core elements of the franchise and the stringencies of basel three compliance here you have it they're saying that first of all the quantity being easing reprieve. we've all lost economic sovereignty by that regard i mean we are still a number one hong kong number two is singapore economic freedom but we've all globally lost economic sovereignty to this the big banks big business big bureaucrats who've been printing money for the bailouts of these banks but despite all of that printing the hundreds of trillions of dollars of printing by central banks despite all of that they say that h.s.b.c. has this capital forbearance that they've had lying extreme earnings lie they've been lying about their evidence yes they've been lying about their income they've been lying about their balance sheet the lying about their income statement they've been lying about their liabilities they've been lying about their involvement in laundering money for they've been lying about their involvement in laundering money from mexican drug cartels they've been lying abo

but in halting the strength and stability of the banking system is the package of measures known as basel three the main goal is to apply to banks to hold much more capital to provide a buffer against risky investments and to dissuade bank is to act more responsibly. well help organize the statistics it's called the eighty million people worldwide have done for more than double the twenty third. in ukraine srsly. i fell in love researchers found and glory and universities in the air setback in thailand recently harbor in third the university of colorado it's an awful at it for transplanting healthy for introducing the aisles. i need any increase in rates due after breaking the study also suggests that chance with type two diabetes. it is well. manila school teacher and siesta time is getting heat when you're excited about reading. she's sleeping a little song and dance about learning. it's where the student had to have to be the best light. our message to the pot. this song comes from the computer access mentorship program. can the government approved him the lessons offered teachers told

the strengthening in capital is actually coming out through basel three through dodd frank. the one thing. it's touted is the supposedly that the that the firms can be resolved in fact anyone who's serious that has looked at this has basically concluded that the dod frank resolution provisions which are called title two don't work because these banks are international and dod frank's reach is only domestic you know you can't resolve international a global farm only with only a domestic regime so you know in many of these derivatives you know the banks pass the books around the world you know the they have counter parties around the world you know so it's just it's just. that to me that in my mind is the big i mean there are not a number of other issues with dodd frank you know did it do some various around the margin that were helpful you know you know yes but it but in terms of really solving the problem you know we have sui have somewhat improve the condition of these firms but you know when you look at these settlements yeah compared to other much of the the bottom of the

the strengthening in capital is actually coming out through basel three through frank. the one thing. how did is the supposedly that of the firms can be resolved in fact anyone who's serious that has looked at this has basically concluded that the dog frank resolution provisions which are called title two don't work because these banks are international and dodd franks reach is only domestic you know you can't resolve international a global farm only with only a domestic regime so you know in many of these derivatives you know the banks pass the books around the world you know the they have counter parties around the world you know so it's just it's just. that to me that in my mind is the big i mean there are not a number of other issues with dodd frank you know did it do some various around the margin that were helped you know you know yes but it but in terms of really solving the problem you know we have sui have somewhat improve the condition of these firms but you know when you look at these settlements and they have been with yeah compared to other much of the the

she has been to the basel meetings and meetings all over the world.r time she has gotten to know the major players. >> what has been the reaction of the banking industry to the appointment of janet yellen? you mentioned regulation. >> i think the banking industry will want to see where her views are. heris better known for policy views rather than her regulatory views. as we saw during her hearing there were many questions about the fed's revelatory burden on small banks and i am sure she heard that loud and clear. the kinds of institutions the fed is starting to regulate that are not banking institutions. she is a very good listener and she will take her regulatory responsibility seriously and will make sure that there is not an undue burden on institutions. >> based on your experience at the federal reserve, is there a necessity for reform as to the way the banking system of the u.s. works? i think there has been a lot of reform. apparatusregulatory before the financial crisis was way too lax. they were regulatory gaps and the fed did not use all th

the basel committee meeting over the weekend and they water down some of these rules. >> this goes back to june when global regulators said that they may tighten the rules that banks use to calculate their leverage ratios. today we got an about-face. the regulators coming out saying, we are not going to. there was a thinking that that banks something like 30 basis points. now they won't have to do that. i can lend for. -- they can lend more. they are perhaps less safe but can make more money. that is why you see a lot of banking shares up. shareholders stand to do well. back to you. >> thank you very much indeed. m&a in general, u.k. energy consulting company on mac has agreed to buy swiss energy company foster wheeler. matt campbell joins us now with more. they are buying the u.s. company, right? >> it is a company with u.s. roots that is based in switzerland for regulatory and tax reasons. effectively, yes. this is a comedy centered in the americas. this is a sign that the oil and gas services space is hot right now. there is a lot of demand for these services. it was plenty of oil an

he have this great story on bloomberg.com saying the biggest banks will meet the basel rules five yearst a time. for deutsche bank and other banks it is going to be a painful couple of years. >> it already has been painful. that is one of the key issues we have got. the history burst of the cost of equity for banks. for five years, european banking has been an unsustainable industry. the returns have been lower than the cost of doing business. markets are forward-looking. part of the recently etched -- have had a strong rally is that sometime in the next two years we expect that the return on equity for these banks is going to cross back above the cost of equity. that is quite a pivotal moment. it is going to come from the end of regulatory adaptation. we have had a lot of fines coming through. the last of those is being implemented this year. the most important thing a lot of investors are missing is that the aqr process is most risky for the small peripheral banks. for the big banks it is likely to encourage foreign investors to have greater faith. >> when we talk about big european b

been significant work conducted by the basel brings all theh financial and monetary experts together, which is a bit of an group no matter how much we've heard about them. there's been a lot of work done f.s.b., the financial stability board. national regulatory levels and legislative levels there has been a lot of work in various corners of the world, here in this country, in europe as well with several directives that have now taken .lace, but i would say that there is the work to be done on issue of cross border resolution, for instance, if we had a major financial institution that was in significant trouble and if such troubles were to expand beyond the borders of one country, you cross borderue of resolution is not yet stablized and resolved. that on derivative product market, there is still work to be done as well. think that we need to think more and we are doing that need to think we more about the consequences of these financial regulatory apply to theey emerging markets, but more solo income countries. are clearly seeing now a translation of some of the financial movements a

. -- the basel rules. is an attempt to be made potentially monumental in the way that we approach banking regulations that are going to violate attention to whether not the banks have enough assets in hand and a funding structure in hand to avoid fire sales. so there are two potential tools, one of them has to do with the amount of short-term fun you can get. the other has to do with the amount of assets you can have that you can sell and hopefully not push prices around. so this is under way. it is being phased in, taking a long time. there's been thousands of comments on it. when you think about it, we have no framework for thinking about liquidity at the highest level. we are greatly assisted in most aspects of corporate finance by the miller propositions that tell you resize conditions under which the structure of an organization's funding is irrelevant. we don't have anything like that for liquidity. we have no idea what the optimal amount of liquidity creation and society should be. we don't know if

the three our federal government, the federal reserve, and the basel committee on banking supervision. serious academic research previous actions by the fsoc and commonsense support designating all three of these or potentially thinking about dancing in all three of these as non-bank sifis. deborah lucas, a prominent mit economist, and former assistant director of the congressional budget office makes a compelling case the government is a significant source of systemic risk and, therefore, falls under the mandate of the fsoc and the ofr to monitor and study it. and respected in what you financial economist posits that governments effectively operate as shadow banks in the financial sector, that the role as shadow banks have been at the center of the financial crisis and that they continue to pose a threat to financial stability. even the fsoc itself recognizes that the federal government has a significant impact on the economy and financial markets. at a recent meeting the council discussed the effects of a government shutdown and a debt ceiling impasse on on the economy and financial

the basel thing has taken pressure off of them. does that not concern you?cern me. what i'm concerned about in europe, not with deutsche bank but the peripheral banks. january has been a huge month. rolling over bonds. buying new ones. once you come to february and march, then the reality of the economics and the periphery come in. and people aren't going to want to buy portuguese paper or italian paper. >> you're waiting for citi to come in a little more? >> i was long going into it. but i would like to buy more. maybe it shakes out tomorrow and the next day. probably buy more then. >>> time for pops and drops. big movers of the day. >> citi upgraded for the first time in three yearses. rio is best position. stay in that one. >> a drop for united health. down 3%. >> the quarter wasn't good enough to justify the move this stock is seeing, which has been significant. it feels like it wants to trade sub-70. but that's why i would buy it again. >> drop for herbalife, down 10%. karen? >> this was down on the heels of nuskin, to see if it's a pyramid scheme. what

uble flexibility >> that is one of the major criticisms of all these basel requirements. nin be too big told fail happening again. marioel is headed up by draghi who says come ok, we will water it down. adjusted to see if the banks do so. again, the perp pozo hasn't been finalized as yet -- the proposal hasn't been finalized as yet. we will see again the finalization of the leverage .atio going forward >> this is not the first time that it is been watered down. philly --citigroup when is citigroup. they want to be held back because of the loan and leverage for the link the restrictions. length of the restrictions. we will see what they do in response to this. >> we will head into a brick. -- into a break. we saw the precious metal jump on friday. expects goal to see a recovery this year. we will ask them how far it can go. >> what we saw after the judge -- after the friday jobs report kite -- isu.s. is quite confusing in some regards. thank you for joining us. it was an interesting report in that it threw up a lot more questions than it answered. at thishould be looking r

a significant step toward a full implementation of basel three. there are some big names. >> the banks are agitating for change. which banks specifically? >> bank of america, merrill ba.ch, paragrap until 2000 18n starts next year. it is about avoiding what happened in 2008. there is no too big to fail. >> the problem is when the generals fight the last batc tle in the war continues. >> there you go. reading and rewriting the maps as we see them. thank you so much for that. deployedgovernment has soldiers as they prepare for citywide investors. they call this the bangkok shutdown in an attempt to topple the prime minister. they have seen more than two months of arrest with protesters demanding an unelected popular counseling -- council to oversee political reform. it will go ahead. as the protest rumble on in bangkok, the company that helped of politicalears tension is prospering. paul allen looks at the role this has played in the recent troubles. the election in two thousand 11, thailand's prime minister has had a predictably rough ride. politic

the mix of business that morgan stanley has in place, in a world of basil three -- basel ii, we ii, we very comfortable with the three businesses in the way they work together. staying in leveraged finance -- the street and morgan stanley still employ traders that are very good in specific areas, and the reason we are in leveraged finance and the reason it remains important to cserve clients front to back. if you are going to have first-class m&a and raise capital and fixed income for corporate clients, you are going to need to provide a market in those securities after you bring the market, so you have sales and trading around that. you don't want to say for a client if you want to raise equity do that, but if you want to raise high-heeled bonds, you can do that. >> i can guess why morgan stanley will want to be in the business, but if i've was a traitor by what i do it at morgan stanley -- >> if you are going to go to blue mountain to do it, you will go to blue mountain to do it. >> but they need a different skill set. down to where eri once -- erik want to take conversation. if you

that is not happening in basel, in banking. how are we going to jumpstart ordination?os. >> wish you were here. >> say hi to matt damon for me. we will be checking in throughout the week. act in new york, time to look at our agenda, the stories shaping the day. bm, and absolutely huge story. reporting earnings this afternoon, fourth-quarter report on news and novell is in discussions to acquire the low end server business. ibm shifting business from hardware into software. the notion of the cloud. consistenteen a threat to our discussions, you can go back to the beats story, that is a hardware-software story. what is consumer, one is enterprise. you can see the dynamics between hardware and software. >> the ability or inability or lack of awareness to get different entities talking to one another. that sounds like what you're focused on. >> and disease meeting devices. during one of the breaks, i told ru about wendy polar vortex -- when the polar vortex rolled a software update to the nest. >> a glitch. producinges are products that are fundamental to our lives. i reme

. >> could you quickly manage your view on basel three, how important it is for banks to meet the standards of capital and liquidity? and also the other banks in europe -- how important is that? >> it is extremely important for banks to have more capital. higher-quality capital. i, putting those into effect has been an important step. there are steps we have taken to make sure the institutions whose failure could create financial distress will be used to meet higher standards of liquidity and prudential supervision to make sure they are more resilient. >> what have you learned since you were president of the san francisco-based? -- bank? you were there during the housing bubble. havee you and others learned a lot, not just the federal reserve. you cannot let a bubble continue to continue to grow. >> i think in the aftermath of the crisis all of us have spent a great deal of time attempting to draw the appropriate lessons. there have been many. the federal reserve is focused on monitoring the economy, a mandate both in terms of our monitoring the economy, attempting to understand the threats

the fact that basel is more relaxed where the ratio is going and where we are going for 2015 further to 2019, that is okay. and the sector as a whole, the european bank sector, has started very strongly and this will perhaps be -- if we look at trading in 2009, 2010, 2011, the banks did very well in january and it begins to fade off at the end of it. and here's a forward warning that the european banks have not done quite as well as expected. >> do you think that as well the fact that it's still not pretty clear whether u.s. regulators plan on, in terms of capitalizing, affiliates of non-u.s. banks, is affecting deutsche bank in an adverse way? >> yeah, i think so. there's a lot of questions there about how it will react to these kind of announcements regarding what the regulators will do. i think there's also the fear of the u.s. regulator towards litigation, further litigation, and that's toward the european banks. so i think that is an issue and something they will have to address, but there's a lot of complexity and unsureness toward the u.s. regulator. >> and bar clays is a bit

you have basel iii capital requirements. you have capital requirements of dodd-frank.hink that is an issue. banks are required to increase their capital tremendously since the financial crisis. this is something else. and i will tell you, what is scary about the volcker rule, proprietary trading did cause losses during the financial crisis. people, firms making bad bets. morgan stanley lost $8 billion on a trade which is pretty big but it did not cause the financial crisis. the financial crisis was caused by years and years of incentives to develop security that is helped make housing affordable to anybody or lending so anybody could, so you could, anybody could get a loan. those securities were underwritten by wall street. those securities were packaged by wall street and sold to investors and in late 2006 and 2007, wall street kept packaging those loans and couldn't find buyers. so they kept those loans and those securities on their books until they became illiquid to the point where they had to mark those things down to sear near zero and hence every firm was near z

. -- the federal government, the federal reserve, and the basel committee on banking supervision. ,erious academic research previous actions, and common sense support designating all three of these or potentially thinking about all three of these as non-bank. lucas, a prominent m.i.t. economist, former assistant director at the budget office, makes a compelling case that the government is a significant source of systemic risk and qualifies as a mandate to monitor and study it. respected and why you financial economist posits that governments effectively operate as shadow banks in the financial sector and that their role as shadow banks has been at the center of the financial crisis and that they continue to pose a threat to financial stability. they even recognize that the federal government has a significant impact on the financial markets. at a recent meeting, the council discussed the effects of the government shutdown and debt ceiling impasse, including short-term funding markets. the federal to reserve, their balance sheet stands at over four dollar trillion in assets and continues t

monica crowley, fox news contributor and basel michael, a democratic political consultant. as we're speaking, monica, health and human services secretary kathleen sebelius is telling an audience in jacksonville, florida, the website, private websites, private insurance plans for obama care registered about three million participants as of now. 800,000 in january. originally the published white house goal was 4.3 million by this point in time. does that mean they are catching up with the notion of success? >> well, if the numbers are accurate jon, then perhaps, but we still don't know how accurate these numbers are. even the white house administration can not tell you how accurate they are, when she talks about sign-ups, does that mean who actually enrolled in obamacare by paying first month's premium? we don't really know the demographic mix. they're giving us some estimates but again they need young and healthys to sign up and they're telling us 25 to 28% of those signing up are in that age group. that is not nearly enough to uphold this thing and make it work and again ho

always want to set the bar low, but, you know, we have a poisonous regoulatory environment, dodd/frank, baseleve that's why the job market is so weak. >> hang on a second. let's bring it back to this week. we have alcoa reporting, a bunch of companies following in the next weeks. once we work through this period, maybe the headlines look okay because we're going to see this repeated pattern of beat, beat, beat, beat but when all is said and done the earnings actually won't be there? >> well, not in the way they have been in the past. i mean, in the banking sector we had a totally different environment before. if anything banks are still delevering so it's hard for them to make money. the volcker rule, same thing. we're constricting their ability to make money for that i own account. management has to go out and find new areains of revenue to replace what's been taken away from them. >> so do you like the financials? i'm misreading the notes if that's the case. >> bill, what i'm saying is investors have to temper their expectations based on the world as it is today as opposed to the pay it was

we would have a ratio basel free, fully loaded in the technical words of 10%.n is at 9.7. in terms of liquidity, i can't comment but you will see the quality of the liquidity we have. there have been a huge amount of deposits flowing to us. we have the capacity issue, et cetera. what is at stake more, the difference, depends actually on the banks is based more on profitability, on capital. some u.s. banks have more to do on that. now the challenge for big banks at societe generale, it's not the balance sheet, is to be able to reach an acceptable profitability. that's what we'll be doing the next few years. we have an economy that might be a bit more sluggish than the u.s., which will be a challenge. >> i have a question. girlfriend number one or two. >> he's talking about -- >> may i say that also in france we don't enter into the personal lives of politicians and other people. >> we don't either. we don't either, not while we're here. we just did but we don't either. >> i like number two. >> that's just me. >> shove you off your chair. >> thank you for being h

>> basel coming over, that was a company that successfully said we got to bring out value in commoditiesana, i love going to louisiana because you see hands-on not just true detective, what a series, but just the immense amount of petrochemical activity going on. the largest project in louisiana is the ellen g. cheniere energy export of natural gas. maybe 30,000 jobs being generated and 10,000 people scrambling to be able to build the plants. and get rid of the l & g, and we had studies about how much more expensive european energy is, and more european companies moving to the delta and the gulf than we have. >> the early enthusiasm has brought us only 24 points on the dow. >> the kickoff openings on monday. >> let's get to pisani on the floor, hey, bob. >> happy tuesday. bottom line is we're not that far from historic highs on the s&p 500. you see the dow, dow chemical or dow, but it's dragging up not just the overall markets particularly the material sector. put up dow chemical up about 8% on word that dan loeb investment and that is dragging up the materials sector as a whole. you'll

players like bank of america and citi group, those are loosening of the rules moving forward from the baselainly it's sovrns somebacks out there raising capital by selling bonds. uk retail is real interesting. two interesting stories there. william morrison, which is one of the big supermarket chains, is reportedly thinking about selling off 10% of its supermarkets to raise about $1.3 billion and return that cash to shareholders. and also debenhams, a sportswear retailer has bought a 4.6% stake in this chain. hoping to reinvigorate what's going on there. one more before i return you to carl. the french first lady, pictured here, is about to leave hospital. she's been in -- oh, that's not her. she's been in the hospital now -- there you go -- for three days for some rest and some tests after it was alleged that her boyfriend, the french president, francois hollande, had an affair with the french actress there. i'm not so worried about affairs as they are here in the united states opinion polls would indicate, however tomorrow mr. hollande has his annual news conference mainly to talk about t

lael brainard sent an awful lot of time in basel trying to coordinate u.s.national financial regulation and i'm sure she'll build on that expertise over at the federal reserve. >> thank you for that, steve. >>> meantime, target is updating the public on the recent data breach. they say the stolen information includes names, mailing addresses, phone numbers, e-mail addresses for up to 70 million of its customers. target also says that same-store sales fell 2% to 6% for the rest of q-4 since the announcement came on december 19th. let's bring our cnbc contributor of sw retail advisers. good to have you back. how much does it hurt and how long does it last? >> this is much more painful than we first expected and it's interesting target pointed out, you know, comps are down 2 1/2%, but they said after the hack, you know, traffic meaningfully fell off, which tells you that the consumer is actually concerned about target security. so, you know, target was already having traffic challenges. they were already having issues with a bigger dilution number for their can