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betty: what do you think of china? --k: i'm not betty: are you worried? hank: no. betty: why not? there's no questioning that there is a slowdown of manufacturing in china. china knows it has to become more of a consumer in the services market, and they're working on that. the consumer side has grown from the 30's to 50%, and that's good. i would not get excited. it took us a long time to learn how we are doing. betty: why do you think the chinese -- you know the government very well, government officials. you know them at the highest level, you have done business in china for decades. why do you think they got the messaging so wrong in the last few months? hank: i think they got excited over the fact that things have slowed down economically, and there is a selling in the market, and they just got carried away. betty: do you think they will get it right? hank: they will get it right. betty: your businesses in china, are they doing fine? hank: our insurance business is growing. not unexpected. betty: it is a big population. hank: you and i were just looking at that video and the s

i am betty liu.peaking of the markets, let's check on where they are as we are 40 minutes way from the close of trade. the s&p high at the open, following the global rally around the world -- is that redundant? take a look at the dow, same pathway for the dow as well. just after 2:00 p.m. we turned lower. off by .2%. we are making up some of those losses. the nasdaq, which had been one of the big gainers on a day we are seeing a rally, they are one of the big losers today. tech shares are falling as well. time for the bloomberg "business flash." ceos are turning pessimistic on global economic growth, according to a new survey by pricewaterhousecoopers, which is as 22% of 1400 ceos expect the outlook to improve this year, down from last year. 23% say things will get worse. people comes on the eve of -- comes on the even of the economic forum in dallas, switzerland. the mobile payments, he saw shares tumble as much as 12%, effectively wiping out most of the gains made over the last two months. just beg

i am betty liu. welcome to "titans at the table." dish network founder charlie ergen has always been known as something of a fearless renegade. from being thrown out of casinos for counting cards to selling satellites out of his car trunk around colorado. he led a group that started echostar in the 1980's and then started dish in the next decade, upending the traditional cable tv world. in the process, he has become one of the richest men in america, worth nearly $20 billion. ergen stepped out of the spotlight in 2011, leaving the ceo rein to joe clayton. but just four years later, the founder is back in the hot seat as television undergoes another revolution. video, moving on to your second screen. like the satellite tv business, in its early days, ergen wants to be at the forefront of this change by creating a new, over the top product called sling tv and buying up billions of dollars worth of wireless assets. assets that he says can be used to build a legitimate competitor to at&t and verizon. whe

betty: good point.el: they are also focusing on the services that those people have with those devices. whether it is music or video. betty: or payment. michael: so they are trying to say that they are not just a hardware company. betty: but hardware makes so much money. analyst who noted that for every iphone they sell, they make $300 in profit. 60,000 applemake pay payments in order to make $100 in profits. michael: right. and they are trying to change the narrative but their hardware business will be there for a long time. part of this is that the large -- given the size of this company, what has to happen for them to continue to grow? so yes, the rate of growth is declining that they will still be growing at the size of another fortune 500 company. betty: couldn't you have seen this narrative five years ago? michael: if you knew there would come a point when the market was iphones. with you get to the point where there is a next great iteration. the five, the sex and 77, they are not that much bette

betty: thank you. julie hyman there. we will be watching these markets carefully, moment by moment. let's take a look at what else is happening with our first word headlines. vonnie quinn has more. vonnie: thank you. the start of voting is 17 days away. paul's are tightening. front-runners hug the spotlight in the debate. areles -- poles tightening. is raising concerns about the texas senators eligibility. trump: the democrats are going to bring a lawsuit. you have to have certainty. you cannot have a question. i can't agree with you. you cannot have a question. vonnie: ted cruz was born in canada. trump is pushing the issue because they are now and net. --neck and neck. the government wants to resume whether taxpayers will get fees based on mining companies. chicago activists are calling for a protest starting today after the release of another video showing a fatal shooting by police. the video was released after a court order. it shows a black teenager suspected of a carjacking in 2013. -- it shows

betty: why?les are definitely great, but it's also bringing in customers for the first time who have never been to mcdonald's or haven't been since they were kids because they're thinking, oh coffee, and it mike matheny, that is not mcdonald's or fast food, that's the same thing i would get anywhere else -- and the egg mcmuffin, that is not mcdonald's or fast food, that's the same thing i would get anywhere else. betty: a large chunk of their sales come from breakfast. shelly: to not have that throughout the rest of the day, you lose all of those folks who may come in later, but it brings in -- betty: it brings in millennials who had never set foot into a mcdonald's. do we see that trend happening? shelly: you will start to see it even more. what is interesting now is to see how much further can they bring this because they recently just launched it, so how much of this is putting out a bunch of coupons and marketing and a bunch of deals to get people in for breakfast, but as each quarter goes by

betty: welcome back to bloomberg markets. i'm betty liu.inishing their first trading day of the week. mark barton joined me this whole half-hour. end at thewe might low of the session. it doesn't look like that is where we are selling. mark: we were lower by 2.5%. we were up about 1% earlier. we have come down. by shanghai composite fell 5.2%. this is the worst performing global benchmark in 2015. the stoxx 600 last week sank by the biggest decline in over four and a half years. that puts it all into perspective. individually, the ftse down by .4%. we talked about this $32 billion deal. shire the big fall are today. er today. last week autos fell by 12%. little change in the dax index. the fifth worst performer in the world. it sunk by 8.3%. that is a big improvement by last monday. week, the v stocks index rose by 37%. today, little change. we will close a little bit lower. it's a big change from last week. could we diverge from what happened in china overnight? betty: that's the big question. we know the south african rand did not. they h

betty: from bloomberg world headquarters in new york, i'm betty liu. we are 30 minutes into the trading session right now and we are lower but we have been fluctuating in the first half hour. the s&p indexes trying to rebound from its lowest close in 21 months. european stocks are rallying after mario draghi says the ucb -- so the ecb may reconsider its monetary stance and could add more stimulus in march. we will hear from our discussion with christine lagarde. we will be talking with ukraine president petro poroshenko who met with vice president joe biden. we will be talking with the bank of america chairman and ceo ryan moynahan days after the bank reported its highest earnings in a decade. inocencio has more. it feels like more calm has come into the markets. ramy: anyway you look at it, 30 minutes into the trade. see a bitgly, we did of a pop into the green after mario draghi's comments. we have actually flipped into the red. a short-lived blip. we will call this flat for the most part. the s&p 500 and the dow, just about flat. the nasdaq down by

betty: from bloomberg world headquarters, good morning. i'm betty liu. oil is surging to a three-week high even after opec delegates came out and said, no, there is no plan to meet with russia to discuss any cuts. they're going to be flexible on interest rates. how many basis point moves will they make this year? topping and alibaba -- estimates as they make their way to global domination. let's head to the markets were julie hyman has some more data on where the economy is headed. julie: pending home sales coming up with a gain of a 10 of 1% month over month, worse than the 9/10 of percent is estimated by economists. -- aa revision lower prior decline of 1.1%. the original reading had been 19th of 1%. another negative data point adding onto the durable goods report showing orders for business equipment fell in december by the most in 10 months. a pullback of 5.1%. this by that, we are seeing a rally in the markets. at least in part by the stronger than estimated facebook, though shares have been selling. we haven't seen a comeback in large technologies.

betty: from bloomberg world headquarters in new york, i'm betty liu. bank of japan stunning investors moving to negative interest rates to juice up their flagging economy, while the u.s. barely eked out growth in the fourth quarter. in the meantime, that move propelling a rally in asia and european shares, and one here in the u.s. oil is also climbing, but still no word that opec will meet to discuss any type of production cuts. zero splitting in two after pressure from after the investor paul icon who gets three board seats. we hear from the chairman and c.e.o. head straight to the markets. that's where bloomberg's julie hyman has the latest "on the markets" and other triple digit move for the dow. julie: bank the japan going to negative interest rates there. stimulus in japan seems to be creating this ripple effect across the globe. there are other elements we'll get to in a moment. all three major averages up. as betty said pretty big moves here, up by 1% at least. look at my terminal for what groups are moving this is an important part of the story

." ♪ betty: hello, i am betty liu. welcome to "bloomberg best."eekly look at the most important business news from bloomberg's television around the world. market volatility continue this week with investors looking everywhere for signs of stability. as we take a day to day look at the top headlines, the dominant theme is change. twitter shares are tanking again closing down, 5% after the company lost for key members of its executive leadership team. what do we know, and what don't we know? there is also a board shakeup coming. >> we know for sure that these people have left twitter. been -- they left all at once. we know that they are adding to members to the board and the board and they are getting close to hiring a cfo. the fact is, twitter lives in a public space. they have a bigger glare on them right now. i don't think this is anything unusual. if this was a regular company, nobody would even notice. pressure from carl icahn, aig is taking action as shares are higher. joining me is josh stirling at sanford bernstein doing extensive research

betty? betty: thank you so much. as julie was talking about oil growing tensions between saudi arabia and iran, energy stocks are gaining ground today. this comes as saudi arabia's allies are cutting ties with iran after the saudi embassy was attacked. our correspondent joins us live from london. first, describe how we got to hear. we know the events that kicked off what happened over the weekend. but this has been a tinderbox ready to light, right? with iranrelations has been rocky since 2009. betty: right. reporter: we had the saudi's and other gulf countries trying to and then we have the syrian war where saudi arabia was supporting president , and then saudi arabia in trying toed iran spread its influence in yemen, prompting a military strike. arabia and its allies feeling abandoned by the united states because of the nuclear talks with iran. they felt the u.s. was basically open to iran having a bigger role. betty: right. way, this move was unexpected, but was it surprising totally? i would say not because the t

i'm betty liu.s fun to sit down with charlie ergen, but according to some reports, it's not so much fun to work for him. in 2012 and 2013, employee surveys conducted by glassdoor gave dish network some of the lowest ratings in the country for its work environment. ergen told me he is aware of the criticism and is trying to change some things internally, but he also defends the culture he has built at dish. charlie: i think i am a really easy guy to work for and with if you are a high achiever and you want to achieve something. if you're just wanting a job, you are probably not going to like it too much here. right? i mean, i think -- i think dish is -- is -- is a culture for those people who want to achieve something. and there is some uncertainty, as you know, as we are talking about what you can do with the wireless. our shareholders don't know exactly, so there is some uncertainty, so it takes a little bit of bravery as a shareholder. you have long-term thinking. and i think even for employees, t

betty: pretty good. for a closer look at the fourth quarter report, i want to bring .n paul miller he joins us now from arlington, virginia. i feel like every quarter, we ask this question. they beat on the bottom line because they are getting so good at cutting expenses. when are we going to see that kind of growth, that type line -- topline growth and not get so excited about them cutting costs. >> it all depends on the economy. we you will not get that -- you will not get that hard topline growth win that you need gdp to grow 5%. higherou start to get rates. until we get out of this growth depression, you will not see a lot of topline growth at these big banks. you will see a lot more cost-cutting, reserve releases. it will be difficult for these guys to beat that topline growth. betty: white easy 2016 will be transformative year for banks -- why du say 2016 will be a transformative year for banks? >> if you start seeing rate increases, starting see these gets do well -- if we don't economic growth, w

betty: you like it? ramy: i do. betty: i knew it.er] have less than 30 minutes until the close of trade for the week. -bigail is life the new - live at the nasdaq with more great apple is one of the big stocks we are watching today. >> it has been interesting start to the year, that he. are tack and biotech. before we trade to apple, biotech. market closed down more than 20% from its summer peak. ,e reached out to an analyst who said that the fundamentals remain positive, and that the problems that plagued the last year are not in play. high fliers, the big internet companies, three of these names in olivet, amazon, and facebook are among the top point drags this year. amazon alone is down about 10%. investors are reevaluating that team. biggest pointhe draghi, down about 7% year to date. several analysts have cut iphone estimates for 2016. and we return to the nasdaq, as we close down today, it will be the seventh straight down close in a row for the longest losing streak since 2011. betty: thank you. let's talk about another tech c

betty: what about the safety trade? ramy: the safety trade -- let's take a look at what's happening with gold. gold right now, futures are down by about 4/10 of a percent. changing,finitely even as we speak with the market open. ..s. 10 year yield is up about seen this up by five basis points earlier, today. betty: thank you so much. let's get to first work news. -- word news. vonnie: the battle over president obama's immigration reform is heading to the supreme court. the justices say they will hear the challenge to the president's plan. a program with spare up to 5 million undocumented immigrants from deportation. the challenge is from 26 states who claim the president by step congress. helping migrants is spreading. police were out there with eggs and fireworks in the netherlands. in london, parliament debated for three hours whether donald trump should be banned from the u.k.. british lawmakers first acknowledged they had act -- no actual power to ban him. the ban was brought up because of donald trump's comments th

mark: betty, what a day. than 7% after two days of manufacturing -- two gauges of manufacturing contracted, one of them for the second month. sinceas not happened 2009, betty. what an effect on global equities. still, we have 30 minutes left of today's session. $200 billion of value. and what is more interesting, it is the worst ever start to a year. last year's worst-performing sector, betty, you know what it was. it was the materials sector. look at this, betty. weak chinathat w data -- or was encouraging data, betty. accelerated the most in more than 20 months, but german inflation was not as strong as forecast, telling us tomorrow's eurozone support might also miss expectations, which of course leads to the question, are we any closer to the ecb coming stock?o its 2% inflation i should never have gone away. betty: [laughter] look what you brought with you, mark. but the strategy is still bullish on european stocks? it's fascinating, isn't it question of the december performance of european stocks was the

betty: thank you.hares of valiant pharmaceuticals are turning just a bit negative on the news that howard schiller will take over as the interim ceo. he was currently the cfo. he succeeds michael pearson he was been in the hospital with severe pneumonia. we want to bring in drew armstrong. what is this piece of news today tell you? through: -- drew: i think it's good news and a lot of people respond that way. it's good news for the shareholders in the company. if you look at the stock last night when it broke, valeant was appointing an interim ceo to replace this three-person executive office of the ceo they announced about a week before. i think a lot of people freak out and said what does this mean? is mike pearson much worse than anybody has known? howard schiller helped build this company with my pearson. he has been on the board, knows it well. betty: was a part of the three-person team? cfo. he was the previous people have called in the explainer in chief for valeant in the past. he is not consid

betty: thank you so much. started with the plunder yesterday in chinese stocks -- plungingted with a yesterday in chinese stocks. should american investors be concerned? if you go back to 1928, yesterday's drop only came in as the sixth worst start since 19 32. joining me from philadelphia's jeremy siegel, the professor at the wharton school at the university of pennsylvania. he has been a long-term ball on stocks. ull on stocks. do you really believe we can get to the dow at 2000 given what we saw yesterday? >> yeah, it was a rocky start. the first day is not a good bellwether for the rest of the year. there is a lot of pessimism out there. 8-10%k we could get an increase. it might put is at 19,000. first, the fed is not going to be as aggressive on interest rates. i look for one-to increases at most. i think earnings will resume their upward course after taking , germanic wallop last year down around seven dollars from 2013. the combination of a less stabilization, earnings, will bring money back into the eq

betty. betty: i am still going to play. are you? it's not going to stop anyone. betty: a french drugmaker announced two big deals worth up to $1.2 billion, trying to lay catch up in the heart -- hot field where they are looking for the next big sure. they saw a move by shire to acquire another company. joining us, the president of research and global development for sanofi. thank you for joining us. i want to talk about one of these deals. an extension of an agreement with work bio, on and in college he deal. tell me what this deal is about. we cocreated this ourselves for years ago with third rock ventures in boston. the co-creation was related to the fact that they had a platform where they could look at the genome of the organism and look at unique molecules, and they found that some of these molecules can act on cancer targets. that is where we find this deal. touching another area, antibodies that have two actions at once. grow and begoing to a major need and we are making catch upeed to do to and leapfrog, if necessary with our own internal assets. when you

betty: good morning. i'm betty liu. here's what we're watching at this hour. breaking news moments ago. china has second thoughts and suspends the circuit breaking rules that have not kept investors from panic selling chinese stocks. we will go live to beijing for the impact. that is causing more selling around the world. it has been a bad start to the year and it is getting worse. u.s. stocks are plunging at the open after european and asian equities take another dive. and if you think stocks are doing badly, look at oil prices. crude falling to a 12 year low now. $32 a barrel is not far off at all. we are about half an hour into the trading session. has her hands full with a lot of action in the markets right now. julie: not as much of a decline here in the u.s. as you might expect. or as the futures were indicating. let's start in china. if you look over the past week or so, we have the shanghai composite. the circuit breakers triggered on monday and today. i want to zoom in on today and what we have seen overnight. only 29 minutes of trading. stocks,op in

betty: from bloomberg world headquarters in new york, i'm betty liu. we are just one half hour into the trading session. stocks are rallying after european shares were up for the first time in five days. china took dramatic action to defend its currency. sparking a record surge in money market rates to deter speculators. why is a group of investors backing the controversial ousted ceo doug charney making a $300 million bid for american apparel? we will talk to the lead investor about why he thinks wrong. was we are about one half hour into the trading session. julie hyman has the latest on a market that is rebounding. julie: we will see if it can sustain itself. yesterday we had a lot of shopping around and ended the day with a little bit of strength. the nasdaq in particular is bouncing back. it had fallen for eight straight sessions, the longest losing streak for the index since 2008. now it is rising the most of the three major averages. see most of the sectors are in the green with the exception of utilities. utilities were up yesterday. we have he

i'm betty liu. you's what we are watching. markets are taking a turn -- here is what we are watching. markets are taking a turn lower. the fed says it is closely monitoring global economic developments. hikes fort out rate the rest of the year? driving down the market, apple and boeing, falling the most since this summer as their forecasts fall short of estimates. is it a temporary blip or a sign of tougher times ahead? facebook is reporting after the bell. 10 mark zuckerberg impress investors again? -- can mark zuckerberg impress investors again? we are about an hour away from the close of trade. bloombergs julie hyman has the latest -- bloomberg's julie hyman has the latest. selling off on the news. julie: it has not been as dramatic a reaction. let's take a look at stocks. all three major averages are falling to their lows of the day, down pretty sharply here. if you look at the interpretations i have been seeing and hearing about on the past hour of bloomberg tv of the fed statement, there is nothing to warn of this kind o

betty: thank you, mark. back to the markets, the s&p is struggling to rebound from the steepest weekly selloff in four years. persisting today, you can see that that's why they been struggling to get into the green today. the next guest sees market signals that warrant a more positive view. joining us now from new york, tony dwyer. tony, good to see you. you say that this reminds you of an echo crash. kind of like what we saw in 2011. explain. >> it's kind of interesting. 2011,ashed the market in everyone would agree. it was because of greece. what happened was that in about eight days it culminated in an ofor 9% drop by november 5 2011, caused by a surprise announcement out of greece that they would have a referendum, throwing all the credit and currency markets back into disarray. it was like the aftershock of an earthquake of what the original greece problem was. people even forget that in 2011 in november you had an auction out of germany on bonds that didn't go very well because we weren't even sure if

betty: right. you are not assigning blame, but some of these investors may have to adjust expectations of return from now on, given some of the structural changes you have talked about, that some of the same to -- conditions that sell 10% average return in the stock market might not be there anymore. dan: when i got into the hedge fund is this, the business itself was much smaller. there were still pricing efficiencies. the market was much more transparent. betty: i'm asking you with all due respect. you think the hedge fund itself created some of those expectations, and when the going gets tough, they bailout. a generalnot make comment on the hedge fund industry. the only promise the hedge fund industry has made is that it would deliver absolute returns. which means, whether it rains or it is sunny in the market, over a reasonable time horizon, which is not a day, but at least a year, you will deliver positive returns. in a down market or in up market . a lot of hedge funds have done a good job of

betty: i am betty liu. welcome to "bloomberg best."he mostlook at important business news, analysis, and interviews from bloomberg television around the world. market volatility continued this week with investors looking everywhere for signs of stability. but as we take a day-to-day look at the top headlines, the dominant team is change. >> twitter shares are tanking down almost 5% after the company lost for key members of its executive leadership team. kevin we'll had a product could ask for head of engineering, head of media, and skip shipper, vice president of human resources could what we know and what don't we know? there's also a board shakeup coming. >> we know for sure these people and left twitter and they announced . there is a fifth person this week. we know that there adding to onbers to the board based information from sources. we also know they are getting close to hiring a cmo. >> in any ceo transition, you see this in pretty much every company. the fact is this is twitter. it lives in a public space. they have a bigger

betty: thank you. we will have our special edition of bloomberg markets with scarlet fu and tom keene -- that will be at 2:00 in new york and 7:00 in london on bloomberg television. you do not want to miss their coverage. ♪ mark: welcome back to bloomberg markets, live from london and new york. this is the european close. betty: markets are anxiously awaiting the latest statement from the fed today. we will bring that to you live. no expectation on any great move that we want to know what they are thinking. is howhe big question the recent global market volatility impact the interest rate hikes. joining us now is richard jeffrey. it manages about $42 billion in assets, thank you for joining us today. within the fedke statement for a stock market rally to occur after? richard: i suppose what the markets are looking for is reassurance that the fed is not going to stamp on growth. regulatedcrease the slow growth. that is what the markets are looking for in the statement but to be honest i don't think ther

betty: thank you. julie hyman. less checking on first word news with vonnie quinn. ie: vice president joe biden says an apology was not given nor needed after two u.s. both drifted into iranian waters. the u.s. and iran said one of oats biden said the incident was handled in a routine way. vice president biden: there was no apology, nothing to apologize for when you had a problem with the the you apologizeboat? anre was no looking for apology. it was a standard process. calle: it is too close to in iowa. senator ted cruz leads donald trump 25% to 32% according to the latest bloomberg politics and des moines register poll. the lead is within the margin of error. bernie sanders is now outspending hillary clinton. media trackers say the vermont senator spent $4.7 million on a ds in the past three weeks, about $1 million more than mrs. clinton. polls show the democratic race tightening at the iowa caucuses in the new hampshire primary draw closer. a decade of sections on he ran might come to an end by mond

betty? betty: american automaker for delivering a record annual to its all thanks aluminum body pickup truck. suv's a really popular. ♪ >> welcome back to "bloomberg markets" live from london and new york. this is "the european close." bloombergfor the business flash, a look at the news.t is this arecompany's pretax profits more than 8% in the fourth quarter. h&m gets about 80% from asia, where clothing prices are often linked to the dollar. takataef executive of may designed to implicate shareholders unhappy with the way he handled the massive airbag recall. that person says the resignation is the only way to gain the support of japanese automakers and lenders to may bailout the company. french carmaker and it's a rainy and partner will spend $435 million to upgrade its factory in tehran. that's your business flash for this hour. shall we talk cars? betty: we shall indeed. you wanted to talk liquor before. today,good day for ford the company posting a record profit of $10.8 billion, the mos

betty: good afternoon. i am betty liu. here is what we have been watching. an up-and-down day for stocks as they struggle to close in the green for the first time this year. stocks cannot build momentum after yesterday's huge sellout to trading days, of course. his fun is the top emerging-market performer in the past clutter years. it includes a heavy dose of investment in china. -- a little light in their sales numbers. about in hour away from the close of trade today. i want to bring in julie hyman. here. know direction >> has been tougher for the markets to define that. we are back in the green again for the s&p 500. the dow and the nasdaq remained lower. we are seeing a mixed picture. look, defensive groups have taken over the top spots here. health care, typically, that reflects some trepidation about economic growth when you see that kind of pattern. doingre cyclical groups worse today, consumer discretionary on the list. there has been a little bouncing around even among the groups on the session. he does individual movers heavily weighted. apple and

♪ betty: you are watching "bloomberg best." i'm betty liu.market volatility come tomorrow's financial crisis? this week, bloomberg television examined the question, is the u.s. economy recession bound? in a special edition of what you miss -- what you missed. >> you just heard scarlet outlined a profit recession scenario, does it have the potential to lead to an economic recession? >> usually it is the other way around. truthfully, if you took out energy, you would not see that profit decline. energy is a big plunger here in terms of the decline side. they would tell you, production declines, employment declines, and income declines. human beings are making more money. we have had job growth. even on the manufacturing data, the isn has dropped below 50, or reached 5014 times since 1990. 11 of those times did not become recessions. three times did. 11 beats three, almost to a four to one ratio. and in that sense, if you want to have a negative narrative, it is really easy. >> recession watchers point to weak any factoring for the downturn. tod

i'm betty liu.vertime for global battle look at some of the most telling chart of the day and what they mean for investors. you can access all these charts on your bloomberg by running the function teacher to the bottom of your screen. kicking things off, senior economic correspondent brendan greeley. brendan: i have decided i am tired of hearing one phrase which is "nascent wage growth." one of the questions is when a redundancy inflation? the answer is when we see wage growth. people say there is nascent wage growth. when i look at the actual measures of wage growth, average hourly earnings, there is a little bit of an uptick. we see some movement but it is not dramatic. this is the employment cost index. a different way of looking at the same thing. what companies are paying for their employees. that includes benefits. it has been flat. . it has not been dropping it is still at .5% growth. these two circles, this amazing movement, that is what nascent looks like. that is all we are talking about.

betty: ok. people are wondering given the decline in january, does this mean if the stock markets are telling us we are headed for a recession, that was a question that citigroup. >> i'm not saying we will never have a recession. i am saying current data does not support the idea of a recession. data is a whole bunch of points that don't support it. there is fear and as a result any piece of information is a narrative. betty: would you agree? jim: i would agree on a couple of levels. markets are supposed to be forward-looking, telling us what is to come. tobias mentioned we don't have an and bill did -- an inverted yield curve. that is why it is important to back off and finally there is an old adage the stock market has predicted nine out of the last five recessions. market has a 45% track record, but it is much better than most economists. betty: so you say no recession this year? jim: i think we'll have a subpar growth year. if you want it in school terms, you're going to come home with a d a

i'm betty liu.ark barton. -- i'm mark barton. , six current and former bankers will go to trial in september. on charges they tried to rig a benchmark interest rate. the accused worked for barclays and deutsche bank. they denied that they tried to manipulate the euro interbank trade. mueller had a meeting with u.s. regulators today. california regulators rejected bmws proposed engine fix -- bw's proposed engine fix -- volkswagen's opposed engine fix. theid not comment after decision. that is the latest business slash. betty: we will take a quick look before we get to your favorite movement, the battle of the charts. we have abigail doolittle live at the nasdaq. we are still on declines in the market. abigail: another volatile day at the nasdaq. we opened higher on the composite index, now trading down by .5%. led by health care, the biggest sector weighting. another non-biotech health care stock down sharply come express scripts. shares plunging after health-care insurer anthem, its biggest client,

betty: in tvs in the cars. at how we are talking-- to jennifer who covers the auto market. bmw is tops. what happened? jennifer: going into december we were not sure what was going to happen. lexus might have a chance again w dropped out in the latter half of the year. they had a lot going in on your and promotions. the crown they won for the second year in a row. betty: was the most popular models? jennifer: 2015 with the year of the suv. they really enjoyed a renaissance this year. they were benefiting from lower gas prices. that was something people were really interested in getting in on. people like the flexibility they offer. you can pile on your kids in the often happy. betty: we make them sound like chattel. heilemann and be done with it. -- pile them in and be done with it. rover,ver, toyotas land the fastest-growing luxury model? jennifer: the fastest-growing luxury branded 2015. they were up about 37% in december. they really benefited from adding a new model, the discovery sport. it's an suv. people

betty: thank you. let's get a check now on the headlines in the bloomberg first word news this afternoon. mark crumpton has more. mark: thank you. president obama plans to carry out his promise to restrain gun violence. he is meeting with attorney general loretta lynch today to discuss potential executive actions he can take. abc news reports the president could act as soon as tomorrow. but the white house says congress can will get involved. >> the president does not operate under the illusion that there's a law that could be passed that would prevent everything incidence of violence. but there are laws that can be passed that would reduce the likelihood that the goods are going to fall into the hands of people who should not have been. we can pass those laws, implements then commanded force them in a way that does not undermine the rights of constitutional, law-abiding americans. mark: on thursday, the president will hold a televised, town hall meeting on guns. the conference center where the shootin

betty: thank you. let's focus on south africa where inflation accelerating to inne-year high of 5% december adding pressure to the central bank to raise rates next week despite the slowdown in growth. a lot of that is due to what we see with oil prices. davos.ead over to do whether it's china or the commodities or the federal reserve, the eye of the storm is plenty of countries like south africa. the reserve bank governor joins us now and it's great to have you with us. your forecast is been downgraded to below 1%. a growthtill expecting of 1.5%. some expect recession in south africa. we expect one in 5% from 2015 good next week, we will present our new forecast and it will come out quickly. south africa is facing a dilemma. growth and weg have rising inflation. this is not something we did not expect. we started adjusting policy in january of 2014. we started our tightening in january of last year. the tightening steps we have taken have been very measured on like previous tightening cycles we have ha

betty: thank you very much. let's check in on the bloomberg first word news with courtney donohoe at the news desk. courtney: we start in asia where islamic state has claimed responsibility for a terrorist attack in indonesia that began at a starbucks. a suicide bomber lose himself up inside the coffee shop and then another attacker opened fire. when it was over, two people were dead along with five of the attackers. it is called the worst terror attack in jakarta since 2009. submitted key demands to its nuclear deal to the west. the government-run television onlythe core to its reactor has been removed. international inspectors will verify that. the nuclear deal requires iran to end its ability to make nuclear weapons at want sanctions lifted. oscars are for the out and "the revenant" leads the way, with a nomination for leonardo dicaprio. forthe acting categories the films best actor categories are filled with white actors. i'm courtney donohoe. let's get back to london and the minutes of the bank of england p

betty: let's stay on oil.staying with us is bloomberg view columnist mohamed el-erian, the former pimco ceo. i wanted to start in saudi arabia. a lot of the news this week. i'm not just talking about the listing of its shares. government execute dozens. this is haunted by the plunge of oil prices. what is it seemed -- seem to me that the country is reacting to oil prices? >> economically they are reacting the way you would expect them to react. they are trying to reduce their expenditures. they are trying to increase their revenues. third, they are reminding the world they have a lot of wealth, assets, and reserves. it is important that they do so. this notion that the saudi's will not be able to navigate the oil prices, remember what they are trying to do. longer going to be the country that loses market share and never regain it. we are going to let other people play that game of having to adjust to lower oil prices. reserves, they come out to winners. plenty of reserves to last several years. that points us

betty: you would expect the government to say that. dth this the evaluation -- evaluation, what growth rate does that indicate? drop belowaw growth 7% in 2015. it will move to just around 6.25% this year. there is a deceleration coming through. the authorities want to make sure that does not come through to quickly. it is something they are recognizing as necessary. supply falling. slowing in china. the authorities cannot afford to try to stimulate growth back up to levels we became used to over this 2000-2010 level. they need some deceleration. the authorities are seeing not too much -- betty: you expect any of this to affect what goes on here in the u.s. with the fed? david: very much so. i suggest the federal is looking at this very closely. we saw fisher's comments weterday, also suggesting are not sure where it goes from here. very much making the case that the fed is watching this. as we saw back in september when global devil gets upset at so much that a post owned this postponed as september rate hike , it can have an impact co

mark: you said it, betty. still bouncing back from that biggest drop in august yesterday with a little help from the president, mario draghi. the european close starts right now. betty: before we get back on the market, we need to break the oil inventory numbers. a build up in invan hollen tore, ramy with more. ramy: the number right now is 3.9 million barrels. that's against a bloomberg survey estimate of 2.2 million barrels. little bit closer with the american petroleum institute number that came out yesterday of 4.6 million barrels. right now we are seeing this come off nymx crude, had seen session highs past hour. now you can see closer to the flat line. $28.39. i'm going to throw it back to you. 3.9 above estimates. betty: expect that oil price to continue to fall based on this build up. thank you, ramy. with more on oil get back to davos. john is joined by the nigerian oil minister. john. john: thank you very much, betty. right on cue i'm joined by the admin str for petroleum resources in nigeria. you an

betty: thank you so much.ust a few minutes away from the european close. mark: what a week it's been. this is the biggest two-day gain in four years. look what happening today. it's the oil companies across europe that are leading to decline. oil continues to fall. the european closes next. neil jones joins us. ♪ bend me shape me, any way you want me as long as you love me, it's alright bend me shape me, any way you want me you've got the power, to turn on the light shape the best sleep of your life. sleep number beds with sleepiq technology adjust any way you want it. the bed that moves you. only at a sleep number store. betty: welcome back to "bloomberg markets." finishing thest day in europe. we like to blame something. mark: i love to complain about something. it is the oil market and the two-day rally has subsided. the stock markets rally has since provided -- subsided as well. this is the first weekly advance. swinger and mood the mood slayer. to an october 2014 level. kingfisher is the big decline are i

[laughter] betty: exactly.ng up a chart, you can't see it, but i want to bring it up for our audience. people are charting whether we are seeing a bottom and at what point can we see a state of a rally. ,specially given today's move we are closing this gap that analysts have pointed out. at $34 a barrel, once you hit above that number, you will see a rally, a substantive rally in oil. does that sound right to you? john: yes it does. what i heard out of saudi arabia, when it is in the 20's, they call it you rational. and oilsaudi's to call price a signal of something. we don't know quite what. they don't like it, that is for sure. a lot of the future of oil depends in large measure on saudi arabia's in number. and whether it stays the same, goes up, or goes down. the whole world is watching every day what is going on in saudi arabia. but also russia and the u.s.. the u.s. is the only country cutting back oil production. betty: citigroup calls buying oil the trade of the year. would you agree? john: yes. it is a

betty: thank you.e will check it on the bloomberg first word news -- check in on the bloomberg first word news. vonnie: the supreme court has refused to take on too that take on a new constitutional challenge to obamacare. the claim that administration used flawlessly the procedures to pass the measure. did agree to -- a federal appeals court said president overstepped his authority by deferring deportation for up to 5 billion undocumented immigrants. the plan is being challenged by texas and 25 other states. netherlands, protests were battles, unhappy about the centers to house refugees. the protesters threw eggs and fireworks at police. china is flexing its diplomatic clout one of the world's most volatile regions. --na's president around arrived in saudi arabia, the first up of a trip that will take into iran and egypt. he is trying to protect chinese influence buildup in iran during the country's long isolation. the trip may also show that china is taking a more hands on role in syria's civil war.

it's all straight ahead on "bloomberg best." ♪ betty: hello, i'm betty liu.oomberg best welcome to"bloomberg best." --welcome to "bloomberg best." thist volatility continues week with investors looking everywhere for signs of stability. as we take a day-to-day look at the top headlines, the dominant theme is change. >> twitter shares are tanking again, closing down almost 5% after the company lost for key members of its executive leadership team. kevin we'll have a product, it's head of engineering, the head of media, and vice president of human resources. what do we knew and what don't we know? there's also a board shakeup coming. >> we know for sure that these people have left twitter. of vine hase head left twitter. the fifth person this week. and we know they are adding two members to the board based on information from sources. we also know they're getting close to hiring a cmo. >> what to make of these departures? >> in any transition you see this kind of turnover in pretty much every company. twitter, itthis is lives in a public space. they have a bigg