brian sullivan has more in toronto. >> reporter: there may not be oil here in toronto but it seems to be the one thing that everybody is talking about. while there's not a drilling rig in sight, concern about the larger impact has the city on edge. toronto is one of the leading financial centers of the world and the banks based here rely on oil companies for a big part of their earnings. >> this is a macro economic story. the banks in canada have $55 billion of economic exposure to the oil and gas industry. if you looked at the canadian banks stocks, they've been negatively affected significantly. >> reporter: there's concern of a bank lendings fall and economy may take a hit. while oil, gas, and mining make up just between 8% and 10% of canada's total economy, industries such as real estate manufacturing, and construction represent a far larger piece. and there's real concern those sectors could also be impacted. >> canada is totally reliant on the natural resource sector. 25% of the stock exchange represented by resource stock, specifically, oil and gas. all of the growth in oil wit

brian sullivan has more from calgary. >> reporter: here in canada the collapse is front page news and while consumers love the drop of the price of gas lane the oil producers and the government do not. rapidly falling oil prices hit everything from government budget to infrastructure building and canadian dollar and jobs. massive canadian oil company sun corp. announced laying off 1,000 workers, cutting a billion dollars from capital spending plan. the potential downside is great enough that high ranking government officials are speaking out about it. >> oil prices continue to slip. we don't evidently haven't seen the bottom yet and this is opened up an enormous revenue short fall in terms of the government's budget. quie for next year 6 to $7 billion. $5 billion the year after that and $5 billion the year after if we don't take action. >> reporter: the answer to the growing crisis is complex. the cause of the problem is not. the world is simply producing more oil than it is using. so is supply and demand so out of whack, we asked an oil economist, why don't the big oil producers simp

brian sullivan went to midland texas, willis north dakota and houston and canada calgary, to see the impact of oil's plunge. >> reporter: with oil prices continuing to fall the oil industry here in texas is starting to feel some strain. and there's perhaps no place in the state that feels it as much as the city of midland. for the past few years, midland has been one of the fastest growing cities in the state and also has one of the highest average incomes of anyplace in america. increased improvements in drilling technology and controversial practice of fracking set off a wave of investment in the west texas town for the past few years. in every direction here there are new companies, new construction. building after building after oil rig, operators, drillers service companies and everything else that is attached to the permian base in oil surge. the permian boom sustains more than 400,000 jobs and more than 100 billion in total economic output. we asked long time oil man and resident paul ken worthy if it is all at risk. >> certainly not going to go away entirely but from some of

i'm becky quick with brian sullivan. joe and andrew are off today. general motors have announced new recalls with an ignition lock. the number is a relatively small 83,000 vehicles. but it comes after their record year of recalls in 2014. elon musk and his wife are divorcing for a second time. they first married in 2010. they divorced in 2012 and remarried in 2013. >>> and a total of 30 bodies have been recovered from the crash of the airasia flight last weekend. >>> the year is starting off with a loss. former political icon mario cuomo has died at the age of 82. cuomo served as the empire state's governor for three terms from 1983 to 1994. some democrats did push him to run for president. he died just hours after his son andrew cuomo was sworn into his second term as new york governor. >>> the averages closing out 2014 with gains and multi-year winning streaks. ended with a gain of 7.5% the dow. that was its sixth straight positive year in a row. but it couldn't close above 18,000 after losing steam. the s&p 500 rose more than 11% and the nasdaq ha

brian sullivan, still in calgary, canada, and he is about to talk to the ceo of transcanada. the dow down by 233 points. you say 233 points. however, we were well over 300 to the down side earlier on today. as i say, we're pairing the losses. we'll see how much we can do that towards the end of trading. stick around. n line and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira. >>> welcome back to street signs. we've been down most of the day, but not for the last couple of minutes. big rapid spike in the price of oil. in fact, crude oil up about 3% in just a matter of five to ten minutes heading into the close at about $47.40. kind of an odd spike in oil. the cnbc team is going to dig into that and try to figure ou

brian sullivan is live today in calgary, alberta. brian. >> houston behind us here. the houston of canada. this is an oil boom town guys. there's cranes everywhere construction. this is really the economic growth center of canada and oil and gas extraction are squarely behind that. some of the biggest companies in canada are based here and, guys they are down 40% or 50% or 60% in their stock market in just a matter of weeks or months. in fact, if that happened in the united states, can you imagine if chevron fell 40% in three months? that's kind of the equivalent of whatting here with mft big names like bay and pinwest. a lot of the stocks trade on the new york stock exchange. >> we'll hear from the bank ceo. we'll talk about why this is happening, where it goes how do you fix it and also what the impact might be on the united states. remember, it's not china. it's not japan. it's not germany. the number one trading partner for the u.s. of a. is right here. canada. about $700 billion a year of which half of that are exports to canada. if their economy takes a hit and

brian sullivan is live for us now in toronto, canada with that story. l right guys thank you very much. you know listen we think that oil is a big story in the yieds, well, it is, but look at this. it is a huge story here in canada. it is not a headline. it is the entire front page of the globe and mail today. this is a major story, guys and that is why we are here in toronto, canada because in signs coming up we'll have the macro impact. we were foesed in calvary, but this is the bigger picture. there's more than 70 companies here trading in the united states. the oil names are down huge. in fact, the average return is a 19% loss in three months. these are major corporations getting a fifth of the market value wiped out in 90 days and five down more than 30%. it's not just a concern about the oil companies. it's a concern about the macro impact on canada. bank earnings, real estate and we care because as we reminded you yesterday, canada is america's number one trading partner, so if this economy slows down, and it looks like it might based on concerns,

i am brian sullivan.news to get to from the fed. >> the release of the details of the last fed meeting. let's get to steve liesman. what exactly are we looking at here with the fed minutes? >> the fed minutes for the december meeting that we are waiting for. what we can say is that the fed is saying that it could begin rate hikes at the current level of core inflation. this is new information that 1.4 peace corps 1.4%. they first would need confidence that inflation is going to move back to the 2% target level but they are waiting to do it now at the current level. just hold on before you think the fed is hiking rates. many see global weakness as the key u.s. risk out there. there is also contingent that see upside risk to the economy from better job growth better gdp numbers and effects of low oil

i'm brian sullivan. it is all about the markets as the oil shock continues to shock the markets and the world. >> it really is a shock. very few on the street predicted a fall of this magnitude and so fast talking of which stocks have been sinking fast although off the worst levels. the dow suffering its worst two-day loss since june of 2013. as you were saying money is fleeing stocks and going into trea

i'm brian sullivan. it is all about the markets as the oil shock continues to shock the markets and the world. >> it really is a shock. very few on the street predicted a fall of this magnitude and so fast talking of which stocks have been sinking fast although off the worst levels. the dow suffering its worst two-day loss since june of 2013. as you were saying money is fleeing stocks and going into treasury. the ten year correct below 1.9 earlier on today which was the lowest since october 15. it is back above it at 1.944%. look at gold behind me creeping higher to a three-week high, some calling it a bit of a flight to safety. look at this three-year chart. it is amazing. one chart that tells a very vivid story. let's bring it up. we have the three lines with white line is the dow. green is the green back. we don't have the chart. we will try to give it to you later on. there it is. >> there it is. >> had to draw it. >> you have the steady chart. the dow is the blue line. the green line is the dollar.

i'm brian sullivan.you've made it back from man diego, as it is now known forever. >> well actually things are a little worse than they appear out there in the markets. we don't want to startle anyone but basically visa is add about 70 points to the

i am brian sullivan. we have breaking news to get to from the fed. >> the release of the details of the last fed meeting. let's get to steve liesman. what exactly are we looking at here with the fed minutes? >> the fed minutes for the december meeting that we are waiting for. what we can say is that the fed is saying that it could begin rate hikes at the current level of core inflation. this is new information that 1.4 peace cor 1.4%. they first would need confidence that inflation is going to move back to the 2% target level but they are waiting to do it now at the current level. just hold on before you think the fed is hiking rates. many see global weakness as the key u.s. risk out there. there is also contingent that see upside risk to the economy from better job growth, better gdp numbers and effects of low oil prices. however those are seen as temporary. let me go through details about what the fed is saying about the story. in general they are seen as positive for the economy. it will be a boost to

brian sullivan is off this afternoon but i'm going to welcome in dominic chu today. before we get to those markets we have breaking news with john harwood regarding north korea. john? >> we've had the treasury department announce a new set of sanctions on both the government of north korea, the workers party of korea, ten individuals, three entities prohing

i'm brian sullivan. mandy, you've made it back from man diego, as it is now known forever. >> well, actually, things are a little worse than they appear out there in the markets. we don't want to startle anyone, but basically visa is add about 70 points to the dow all by itself. we're finishing off the worst month since last january. it's also the worse week in seven for starts. the only saving grace is that the losses for the dow and s&p aren't nearly as bad as they were one year ago. let's get to the new york stock exchange, and out to rick santelli in chicago after that. what are we watching in particular on this friday afternoon? >> we're waiting to see whether or not the markets can make a comeback. there seem to be attempting that right now. helped in large part by the energy sector. recently the markets, of course, moving very much in tan dem with the price in oil. today that hasn't been the case. although with the gains we're seeing in crude right now up over $2, it looks like markets are finally

brian sullivan is off this afternoon but i'm going to welcome in dominic chu today. before we get to those markets we have breaking news with john harwood regarding north korea. john? >> we've had the treasury department announce a new set of sanctions on both the government of north korea, the workers party of korea, ten individuals, three entities prohibiting u.s. financial institutions from doing business with them. now, this is the second stage of the u.s. response at least that we know about. we remember after the sony hack in advance of the release of "the interview" movie. the internet went dark in north korea for awhile. the u.s. government did not deny that it was responsible. jack lew said in a statement this is part of a range of responses the united states is making to try to show north korea that it's not going to tolerate the kind of incursions into cyber space affecting u.s. businesses and we will see what the response from the north koreans is to this. >> but john here's the thing. north korea is already one of the most impoverished and isolated count

>> i wouldn't expect anything less of you, brian sullivan. for the u.s. dollar, it's a winning trade what the swiss did. you can see that the dollar free action. just in two days here, euro weakness, dollar strength is really the big story here in the currency market after, of course, the strength in the swiss frank. you see it in power lunch. it's a good etf. it tracks dollar strength. clearly, as you point out, equities are not feeling the pressure from the strong dollar. so far the dollar's note has been very sizable compared to normal. these moves that we're talking about in currencies with 1% today for the euro dollar are something. that's unusual. you can imagine how crazy it was to see the swiss frank surge 30% on the back of the surprise announcement. i was joking with one of our guests about the fact that i was there maybe just maybe the chances are higher now. don't you think? >> certainly more wall street firms are joining the chorus calling for euro dollar parody, which would be still another 13.5%, 13% move from here. lower for the euro, stro

i'm mandy drury, tyler, as you said, you're sitting in for brian sullivan who is off on a much-deservedion. >> i'm happy to be here with you guys. it's a pleasure especially on a very nice day in the markets. let's take a look at where the averages stand right now. with a little less than two hours left

i'm mandy drury, tyler, as you said, you're sitting in for brian sullivan who is off on a much-deserved vacation. >> i'm happy to be here with you guys. it's a pleasure especially on a very nice day in the markets. let's take a look at where the averages stand right now. with a little less than two hours left in trading today, the stocks are moving up. the dow with about a 1.5% gain. it was up more than 300 points, now a little bit off of that at 17853. the nasdaq higher and really the standout here among the major barometers, up nearly 1.75%. that's a nearly 80-point gain. and the s&p 500 higher by 31 at 2056. again, about a 1.5% gain. let's take a look at oil, which is weakening just a bit as it heads into the close, as you see, now down 85 cents a barrel at $47.83. >> and we'll bring you the settled prices at the bottom of the hour. >>> meantime, happening now, paris is dimming the lights on the eiffel tower to honor the victims of yesterday's horrific attack on a french satirical magazine. one suspected gunman is in police custody while two others remain at large. cnbc's hadley gamb

we can argue that broadly speaking, and brian sullivan is particularly worried about this, you can argueroadly speaking the losses to the economy from energy jobs, capex, expenditures is going to offset higher expenses on the part of the consumer. that is a legitimate debate to have. but in the meantime there is no doubt that consumers are benefitting from lower gas prices. >> programming note. steve liesman has a live interview with san francisco fed president john williams in about two hours, right here on cnbc. write all that music and run the fed. >> that's incredible. >> amazing. >> as we wrap up the busiest week of earnings this quarter there are two it tech names on the move. dominic chu is on the story. >> we have a couple big names. let's make it three to talk about. some big stories here. let's start with amazon.com, the stock is surging. see they're up by 13% after the company reported a quarterly profit of 45 cents a share well above the 17 cent estimate the wall street forecasts were looking for. gross margins rose to 29.5% from 26.5% the same time a year ago. the company al

meantime, brian sullivan is on his way to western canada now to report on how this oil shock is impacting the energy industry up there, an area that you probably know provides a good chunk of fuel to the u.s. so watch for that wednesday on cnbc. so let's head back out to phil at the auto show in detroit. he's joined by the head of volkswagen america, first on cnbc. over to you, phil. >> reporter: thank you very much, sue. i'm joined by michael horn. and right behind us is the car of the year, which for a lot of people, the significance of that cannot be overstated, correct, with the golf? >> we are really excited. and after golf has been introduced middle of last year with the gti, we've won already ten great accolades including motor car of the year and now north american car of the year here at the detroit motor show is the icing on the cake and we are really excited and it's great proof that we're in the right way. >> let's talk about sales. because everybody knows that you've had a rough year. sales down 10% in a market where sales have been up. have you bottomed out, though? have you

i'm becky quick along with brian sullivan. joe and andrew are both out today. but we're here we're manning the ship and ready to go. two economic reports kicking off the new year. both of them at 10:00 eastern time. the government issues november construction spending. guess what? the hov very industrial didn't have quite as good a year as it did before. american box office received $10.about approximately down more than 5% from 2013's record high. >>> and dick network is the first company to make "the interview" available to viewers. fios is offering it. it's being played and pushed heavily every time you turn on the tv. >> you saw it? >> no i didn't seize it. but they're pushing it heavily. >> there's a lot of people out there. you kwies probably did it last week and i know we did it on street signs at 2:00 eastern, this could change the paradox. if this works, this could be this inadvertent block bust move to change the way movies are distributed. >> although i think there is a one off. this is a movie that generated publicity than anyone could have anticipa

brian sullivan, what are we look at today? >> a big drop for the dow with the markets opening.ht your way through the inch of snow to get to the office. microsoft, bad numbers last night. that stock indicating way down. the overall markets right now should be lower. a lot of traders aren't going to be able to make it in so you might no have the number of people trading and that tends to exacerbate price swings. the streak for gas prices falling is officially over. yesterday gas prices rose four tenths of one penny. still fantastic. gas is cheap. "the new york times" reporting that the obama administration on thursday may announce the opening up of the atlantic between virginia and georgia for offshore gas and potentially oil drilling. they have been trying to get there for 30 or 40 years and according to the times there might be a big win for oil being able to drill off the coast of virginia. so a lot of news. russia's credit rating got downgraded to junk late yesterday so take your pick u. >> let's bring steve in here. the gas price story, double-edged sword? it's leading to s

brian sullivan thank you so much. great to see you.be our guests. >>> up next senator bernie sanders with his take on the president's proposals for the middle class. we're back in just a moment. you owned your car for four years. you named it brad. you loved brad. and then you totaled him. you two had been through everything together. two boyfriends. three jobs. you're like "nothing can replace brad!" then liberty mutual calls. and you break into your happy dance. if you sign up for better car replacement, we'll pay for a car that's a model year newer with 15,000 fewer miles than your old one. see car insurance in a whole new light. liberty mutual insurance. we're in seattle to see which 100 calorie black cherry greek yogurt tastes best. definitely that one. that one's delicious. it's yoplait! what? i love yoplait! the other one is chobani. really. i like this one better. yoplait wins again! take the taste-off for yourself. you wouldn't do half of your daily routine. so why treat your mouth any differently. brushing alone does less tha

cnbc's brian sullivan.kets. how are they responding to the big vote in greece? >> well association far not-- well, so far not a big reaction. watching the storm. whether or not we'll have trading tomorrow. probably will. obscure, talking about greece. the economy not big, but implication koss havecould have a ripple effect. the syriza party winning, forming a coalition with a far right party to try to get a consensus government in greece. the far left sort of banding together with the far right, because both of them though very different policies in a lot of other things oppose the austerity measures imposed by the european bailout. extremely interesting to watch the european economies, see if they can hold together this greece vote the greece exit from the eurozone, some saying that could happen. we're watching that. no update on trading at the nyse tomorrow and price of oil, like $1.75 gas in many parts of america and probably going to go even lower. >> there's a storm comin'. thank you, brian. cnbc's bri

we also have brian sullivan from cnbc with us.ame on said so good to see you. so, let's talk about the good the bad, the ugly the implications. what's the good of cheap gas? >> it feels pretty good. anyone who has filled their car up in the last month or so gas is down to national average of $2.05. under $2 in a lot of places. this puts money back in the consumer's hands. $750 tax break for every american household is amazing. >> mike, you put it another way. >> yeah. it's really the first significant pay raise the average american workers have received in 10 or 12 years. you can see it happening at the pump when they look in shock only paying $30 to fill the tank instead of $55 or $60. >> what's the bad news about cheap gas? >> so there are various levels of bad news. it's bad news in texas where you know texas has been having basically an oil boo m because of fracking but fracking becomes economically not viable once oil becomes below $70 a barrel. it's now at about $50. not showing any signs of going up in the near future. so t

brian sullivan who conquered na boxen several times in calvary with the story. >> how are you doing.'s not up. maybe powered by oil. who knows? points of oil well taken. but here's the thing for investors. about 70 canadian companies that trade in the united states 15 major oil producers. viewers in the states are buying companies. two different types. hear about the oil sands, that's a strip mining but you've got steam extraction a different type. i don't want to call it fracking but a different production. companies that you invest in got to know which do they do. chatted with head of energy research at ihs yesterday and we asked him to explain the cost difference between the two different types of companies and oil extraction. here's what he said. >> on the operating costs, much lower, talking about $46 on average for a mine to operate versus facility down around $20 of eti. higher costs to bring online not higher costs to operate. >> so of the companies that are currently operating, guys 46 really the break even for the miners on average and even lower 20 lower than people think,

brian sullivan will get on that mechanical bull and we're going to see how long he can withstand the? >> you have to beat your record because at that -- this is not the first time you rode the bull. >> the first time i was on for 16 minutes. >> it was so slow. >> look at me. i got experience. plus, it's harder to ride a bull that's pretending to be a bull. it's harder to ride one with no head. this one has no head. >> it's a flashback. when you were a little boy, you wanted to be a cowboy. and there you are. >> listen, i hate when the control room turns on me. >> they're not turning on. they're making your dream come true, time and time again. some years in between. >> it was a hot costume. lone ranger was a hot costume. >> i liked it. >> thank you tonto. we kick things off with a fox news alert and heather nauert. >> brian, it's always great to see that picture of you as a lone ranger. >> i guess so. we keep seeing it. >> good morning to you all. one day after we learned that the u.s.-led air strikes in syria are not working against isis, the u.s. military announcing that it will se

i'm kayla tausche along with brian sullivan and steve leisman.w are in davos getting ready. becky will join us from davos in a minute with marriott international ceoarne sorenson. >>> here's what's happening at this hour. the global imf cutting. what's the "s"? >> i think it's lower case. >> "the wall street journal" reports google is near a $1 billion investment in spacex. it would value the venture at more than $10 billion. amazon announcing plans to produce about 12 movies a year. focusing on budgets between $25 million million. then they'd be available on the amazon prime video service within two months. >> all right. so we are less than 90 minutes away from the opening bell on wall street. and your markets look like this on this holiday shortened week. we are seeing 87 points on the dow jones industrial average. so the u.s. markets hoping this week to reverse three straight weeks of losses. let's also check out the markets in europe. they've been volatile in the last couple weeks and months. not so much today. actually france, uk, germany ar

> however the system works out in this much-anticipated trial for people like brian beard, who lost his friends alex sullivan that deadly night justice can only come in one form. >> the only way that alex will receive justice is death. you fight fire with fighter. it someone takes an eye it can't an slap on the wrist. you can't. >> it is an groundbreaking memoir by a guantanamo prisoner. in it he describes two long years of for torture. >> tony, mohammed has been at guantanamo longer than nearly any other prisoner. his lawyers worked for seven years to get it declassified. they say he's innocent and should be set free. >> from behind guantanamo's inif a miss walls hisinif a miss walls come this diary. still visit accounts of abuse remain. interrogation 24 hours a day. i was living in terror. he said his captors took him out on a boat and made him drink saltwater. i believe it was directly from the ocean. it was so nasty i threw up. later he said the abuse continued onshore. they stuffed the air wean my clothes and me with ice us cubes from my neck to my ankles whenever the ice melted they replaceed it. >> he

brian actually spoke to one year ago. >> we did, this show. >> well, no, you spoke to him a year ago. >> the show, the network. >> and his company's stock has quadrupled since then. was the sullivan touch or just a good company? >> just sullivan. >>> we'll also be heading to the detroit auto show, ahead. you just got a big bump in miles. so this is a great opportunity for an upgrade. sound good? great. because you're not you, you're a whole airline... and it's not a ticket you're upgrading, it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ >>> we're still seeing the impact of the big oil price drop on gas prices. today, the nationwide average for a gallon of regular gas is $2.13. that's according to aaa. that is down $1.18 from last year and the 108th day in a row that gas prices have fallen. >> and we've talked about it many times, mandy. when gas prices are this low, people want those big trucks and big suvs, fuel efficiency, simply put, is not as important. so what are t

sullivan joins us from calgary. in what is known as the houston of canada. is that what it feels like brian?e heat. they're, yeah, becky. this is an oil lube town. they're all right behind us here. calgary is where it's all happening. maybe things are slowing down dramatically, in fact last night, sun corps, one of the canadian biggest producers announced 1,000 layoffs. what we're seeing is happening is happening as well here guys. we're going to talk about this all day on cnbc. but from a political standpoint we had a chance to sit down yesterday with the ceo of transcanada, they're the parent company of the keystone pipeline. and one of the big criticisms that hey, none of the oil used by america is going to come from here and go to the gulf coast to be exported. and i asked ross gerling, if that is a fair criticism. oh well there was supposed to be a sound bite there. basically what he says guys is this, that is not a fair criticism because basically the oil that's going to be pumped down to the gulf coast is going to be bought by exxon, valero conocophillips and others. they're going to