economy. all that and more tonight on nightly business report. i'm bill griffeth. tyler and sue are off tonight. ibm with better than expected earnings with a fast growing cloud computing business and security software and despite decreasing demand for its servers and storage products, here are the numbers that came out. adjusted earnings $5.70 a share, topping analysts forecast by 7 cents and fell from a year ago to $24 billion. that just missed wall street forecast. shares initially higher in late trade on the news but then turned negative on weaker than expected forecast guidance for the full year. bertha coombs joins us from the nasdaq with one big takeaway from ibm's report. >> reporter: bill the big takeaway that ibm getting smaller. the company went from over a billion shares at the end of 2013 and as of december 31st they had 991 million shares. people said as their year over year revenues declined for seven straight quarters over the watch right now, the thing that's helped them on th

china is an economy that is almost the size of the u.s. economy.hich is a bigger population in the united states could those opportunities be better than they are now? absolutely. it is not the top opportunity for our business. >> are you more positive than you were in 2014 quarter desk in 2014? >> betty liu, we will send it back to you. >> thank you. "in the loop" returns and two minutes. ♪ >> let's count down to the open. alix steel, you are doing double duty. number five, seemingly the tale of two food giants. starbucks reporting and 83% surge in their profits. mcdonald's not helped by their food. about an hour ago, they say it has been a challenging year for mcdonald's. >> starbucks was helped by the transactions coming from mobile. it is about mobile. you get in there and out there. you hear them trying to pare it down. >> starbucks has done such a good job on mobile. it is not just going to be mcdonald's, but other restaurants. wendy's has done well, too. >> starbucks is trying -- is toying with the idea of putting in alcohol and more substan

economy is not a word. it means they wake up in the morning and have a purpose, hope for their future. their kid might be going to the community college. people know those are the presidents we know well upon that somehow expended social or economic justice. i don't think that it is just he is feeling the economy per se, he is feeling his sense of the future might be more engraved than it has seemed in these last couple of years. >> the greatest thing he can have for legacy is the implementation of obamacare successfully. what is good for him now is if the economy gets better, the republicans lose their strongest argument against the affordable care act which is it is ruining the economy. he is on the offense on tax issues. he is proposing things that favor 70-30 in favor. he is on offense and tax reform, paying for community college. it is harder for republicans to undermine the affordable care act. that is where his legacy will be. >> i will add one thing. i think there is no question who succeeds him in

what is expected to happen, not only to the greek economy but also the global economy? >> well, if the opposition side get in which now looks like a real possibility, i mean, a real possibility of a greek exit out of the eurozone becomes a prospect to be seriously concerned which i think is very considered, rather which i think is a very interesting situation, indeed. it comes as no surprise to me that this situation is arising. but it's interesting to observe the attitude of the germans. i mean it looks as though they are starting to prepare the ground for a greek exit, which is rather interesting. >> if the certain countries, euro zone countries do exit, the repercussions not only for the economy of germany but the banking system and the banks which hold so much of the bonds. >> i think there are the financial risks, if you like, the largest risks involved here but it's it is a very -- if you like -- inconsistent situation for the germans. i think, in a sense, the germans are sort of sighing a sigh of relief that at last they may be able to get rid of the greeks from

economy and think about it, what is it, it's a service-based economy.services are not traded all that much. you think of the bigger sectors of the economy, starting with health care. growth? >> zero. education, how much is that affected by growth. zero. little. if you look at the big sectors, they have a lot of ties with the rest of the world. a real significant slowdown or downturn in the rest of the world will hurt. if all we talk about is slower global growth, it doesn't cause recession. >> this is the question that is so important. that is wages. we see an uptick in the last employment report. do you think this could be the year when u.s. workers see a meaningful increase in their paychecks? >> i think potentially it could. what is really important is not necessarily what you see in the pay check, it's purchasing power. what we believe we'll see is acceleration in nom nam wages, but in -- nominal wages, but inflation should be low. look at gasoline prices, down 40-50%, putting extra purchasing power in people's pockets. at the end of the day, that's

that has helped the european economy. it helps all the european economies. any time germany is among the company -- among the countries that profits most. this helps europe as a whole to rebound. >> what it does also highlight is the difficulties europe has had in the last few years trying to get out of this quagmire that it finds itself in. that is also through the prism of this bifurcated interest rate environment with the u.s. and the u.k. going in one direction and the europeans and japanese going in the opposite. >> that would assume -- and i think every time we talked about in the past, we have been wrong -- it would assume there is a long-term sustainable recovery of the u.s. and the u.k. from the rest of the world economy. you can see that europe will continue to have low interest rates, expand the balance sheet, the same in japan. here in china, there is discussion of monetary easing. there is a likely development of interest rate reductions here. it is merely a differential that is there at the moment. i don't think the fed can continue on the anno

the etsy economy that we see is really about cathying an economy -- creating an economy where everyone wins. the way etsy works, we're obviously an internet platform. but when you sell something on etsy, etsy's cut is 3.5%. the artist's cut is 96.5%. all the money is going back to communities everywhere. there's not like a great sucking sound to bentonville, arkansas for example, not to name names. [laughter] and we really see this, you know -- our 3.5% as etsy has become more successful we haven't -- that fee has not been raised. really since the company started. so the etsy economy is a really fair economy. it's also getting into offline retail. i mentioned milk and honey luxuries. we've also built a wholesale program. boutiques are now buying from etsy sellers. again, 3.5%. the etsy economy is really about, instead of looking at the economy in sort of a zero sum way, like how can i win? how can etsy win? it's how can etsy do well, how can ourly our suppliers do well, and how can everyone do well? >> it's a different view. >> you've also written about how the virtual connections with

you are seeing little it's of than many -- many economy seeing -- mini-economy seeing growth.ll, wage growth is slightly below gdp. only 6.8% rather than 7.4% for gdp. you are not seeing -- consumption will be struggling to rise higher than gdp because you are not seeing income growth as well. >> thank you for joining us today great to get your insight, aranda -- miranda carr. coming up we speak exclusively to the eu digital commissioner. what can tech firms do to become more competitive? ♪ >> welcome back to "on the move ." i am anna edwards in london. the market shock from the swiss bank is felt in denmark. they're trying to assure they are not about to copy switzerland. the swiss bank says it has the necessary tools to defend the euro peg. a strong offensive being put up by the danes. >> you cannot find anyone in the research or analyst community or hedge fund community who thinks they are not serious about defending the peg. that makes me nervous. a one-way bet like that you if the market smells like, a can remain solvent longer than you can remain rational or irrational.

federal spending will continue to be an asset to our economy. but there's no question that the foolish sequestration policies born out of the dysfunctional congress is doing real damage to our economy and to many virginians quality of life. what remains to be seen as however spohn to this new reality, that the days when virginia could simply rely on federal spending to buoy our you federal spending to buoy our economy in both good times and bad are over. if we are going to preserve virginia's position as a global economic leader we must open up new avenues for growth that are not dependent on federal government spending. we must grow, we must strengthen and we must diversify. to sum it up, we must build a new virginia economy. folks, this is our time. [applause] if you look at the policy actions that my administration has taken, and the proposals that i've said before the general assembly this year, you will find that every one of them comes back to creating new economic opportunity for all virginians. i know many of you will agree that the firs

economy is on sound footing. while some other economies are struggling. so what's the role of the u.s. from a global perspective? steve liesman looked for some answers at the american economic association's annual conference today in boston. >> reporter: policymakers and leading economists at the american economic association's annual meeting in boston the profession's biggest gathering, generally gave the u.s. economy a good diagnosis, believing it can avoid the ailments afflicting weak economies overseas is like europe and japan. >> we have had an uneven global recovery to be sure. despite the sometimes sour attitudes in this country, the u.s. continues to dominate industrial economy success. even with the downside risks faced by the american economy over the last year it's still likely to be the relative winner of the party. >> reporter: san francisco fed president john williams said he's factoring that into his decision on whether to raise interest rates, but he says the u.s. is still on track for a midyear consideration of those rate hikes. >> the u.

is not a real economy. it's a blue state knowledge economy innovation economy, which is our future. but it's expensive to live there and expensive to run the economy so that's the dilemma our nation phases. >> play this out. if things go down the track they are going on. these blue states with knowledge economies, that are more dense and expensive to live in continue down the road. and red states within with the way they are going, where does that leaf us. >> the red stages - energy pull it out of the ground it's billed out in the suburban sprawl. they can do that and have a low tax of the the blue states and metros, the cities that are the centers of ippo vacks, the new york -- innovation the boston are dead not only housing. they have to pay for the state universities they have growing inequality. they have to pay for transport system and rail systems to get people around. they are shrinking dream is a product of a more expensive economy. what i fear and what worries me is in this fiction. old red state d

so the etsy economy is a really fair economy. it's also getting into offline retail. so i mentioned sarah from milk and honey luxuries. we've also built a wholesale program. so boutiques and retailers are now buying from etsy sellers. we're brokering the wholesale deal, again 3.5%. the etsy economy is really about, instead of looking at the economy in sort of a zero sum way, like how can i win, how can etsy win it's how can etsy do well, how can our suppliers do well, how can the retailers do well and everybody take a fair cut. then everyone does well. it's just a different view. >> you've also written about the ways in which the virtual communications of internet age can facility real human connections between people. tell us about how you think that can work. >> i mentioned briefly etsy teams. the thing to understand about etsy is it's real people on the ground, you know. in new york there are dozens of these etsy teams who meet. to give you a visual sense of kind of how pervasive etsy sellers are, there are actually more etsy sellers in the five boroughs in new yor

so with those economies, not. the middle eastern economies, russia kazakhstan and others. >> there's one trick ponies classic mineral resource boom bust economies when the prices do end bust and revolution we don't have the track to particularly favor u.s. interest or western interest anymore. so i think that's a worry. but you're right, tyler. that's another thing too about this. i think the worry about the job loss in the u.s. drilling sector and it's overblown as well. the job numbers i have are only several hundred thousand good paying jobs don't get me wrong but not enough to take us down there. there's too many service jobs, jobs that have been part of this recovery that have gotten us to where we are with the gdp numbers. it's going to hurt with a mark but not taking us down. >> we'll have you back later in the program with acquisition in the sector. thank you very much. >>> still ahead from deep in the heart of texas, all the way up to north dakota some of the cities in the heart of america's energy boom a

japan is a huge economy. if japan weren't in recession, it would be a huge economy plus 3%. so the returns aren't that different no matter what's going on with japan's business cycle or any of our trading partners. the second is i think to the extent the world is becoming more chaotic, what does this mean about the returns to trade? i think arg automobilely that raises the returns to trade. we are a world with greater shared interest and this is where formal trade becomes a policy as well. there is greater trade with our neighbors when we have deeper linkages with them, and putting it more bluntly in terms of foreign policy, we had a huge effect in russia because we used to trade in russia and sanctions have been quite effective. i think there have been foreign policy issues on the table as well. >> those are reassuring answers. we hope these numbers are correct. we hope this can be a very essential element of helping drive economic growth in the united states. i just wanted to get your thoughts relative to potential instabilities and sluggish trade partners' impact on that.

an side russia's troubled economy. largest bank said he wants to see what will happen to the roble, you have to see what will happen with oil prices. >> the forecast for the rub and the oil price. le and the oil price [indiscernible] >> breaking this hour. we are watching the world's largest jewelry maker. the latest trading figures. ♪ >> welcome to "countdown." i am mark barton. >> i am anna edwards. >> i am manus cranny. >> the start of the program and our top story. in an exclusive russia's finance minister says the country is heading that way didn't recession if oil stays at around $45 a barrel. -- the rush is headed into a recession if oil stays at around $45 a barrel in >> the current situation and talking about $45 per barrel and expected activity for all year long -- and expect that to be for all year long. >> is $45 a barrel what you're working on now? >> is one of the possible scenarios. a possible scenario that generally that should be a little bit higher. in case it would be the price the decline would be b

is our economy perfect? no, no economy is. ironically, i do not see the republican_led congress stepping up and fighting for workers anytime soon. they could cosponsored a bill to raise our minimum wage. in fact, most of our economic recovery has come in this country despite strong republican opposition. this is a party that has strained to default on our economic obligations, and shut our government down, at the cost of our taxpayers. they live in a bubble in which they think history will stop repeating itself, and that things will work this time. let's talk about another piece __ healthcare __ pprobably one of the most important issues for american families. the republican leadership on healthcare has been nonexistent as well. healthcare should not be just a privilege that in tiled phuket to have and can afford. before the aca was enacted, being a woman was considered being a pre_existing condition. most women's health issues, including pregnancy, were routinely treated like the existing conditions. now, thanks to the aca, w

so much to do with the economy.s the first time barack obama has been able to stand up at a state of the union and genuinely say the state of the economy is strong. it still has problems the wage growth is too slow and there's income ineconomic but the gdp growth is up. corporate profits all of those things soaring right now. he's able to come with the wind toes his back no one could have anticipated in november. you and i charlie talk about narrative and power of narrative. i saw more than anything here a guy, people wanted to write a story about barack obama in november and december. and he has moved with great alacrity and force to try to say i may not be the only author of my story, but i am still the author of my story and i'm going to try to write this thing in a way i want to see it ridden and i'm not going to become irrelevant or completely controlled by republicans in congress or by the larger forces around me. i'm still here to play. >> rose: all right. let me just all of you this. i mean how does this set

>> their economy shrinking 3.5%.s, to gang months ago, -- two months ago, they were supposed to grow. they are not growing as much as thought. saudi arabia slowing, growing 2.8%, the slowest pace since 2009. they will post a budget deficit of 11% of gdp. just in october, they were saying they were going to see a surplus. >> let's look at this part of the world. what are the producers? malaysia and in the studio is -- sophie, welcome. >> we are expecting the prime minister to outline plans that have to do with the current economic traditions. exporters are seeing a crunch with the decline in oil prices. malaysia is reliant on 30% -- >> we have a budget coming up. >> we do indeed. the assumptions were 100 u.s. dollars per barrel. reality is taking malaysia for a bit of a ride. they must take a look at that assumption and review it. today, we are expecting the prime minister to announce measures to adjust the -- >> half the time you give with one hand or take with another. or you take with both hands, in times of auster

when he looks at the economy, he sees an economy that's at its strongest of his presidency. so, you're gouge to see a little bit of an i told you so theme here. republicans predicted dire consequences, result of his policies, especially on obamacare. he's going to say, the verdict is in. my policies worked. >> and abc political analyst, matthew dowd, everyone gathered there, waiting for the sergeant-at-arms to announce the president, that is really the president's big job tonight. to own the recovery, convince people he should get some credit for it. >> his main imperative is to sell the rise, to sell the movement that's happened in the last two months. he's seen the american public to go to some what unhappy to some what happy. he needs for them to know the economy is doing well. that's what he has to get out of this speech. he convinces the american public is economy is really on the move. >> we see senator lynn see graham, who just announced he might want to run for president himself coming up in 2016. a few possible candidates in the chamber. snowstorm senators ted cruz

for our economy.ould like to take a a moment to recognize we have new members of the community >> it sounds like a law firm's. >> i want to welcome them to the finance committee. i am also pleased that sen. warner is still on this committee. i expect him to be a very hard-working member of this committee and somebody who brings people together. i am counting on that. i am pleased that he is with us. no doubt each of their contributions will be valuable to our efforts. finally, i want to note that if at any.during the hearing we have acquired present i plan to move to the executive session to firmly organize the community which we will include routine matters such as organizing subcommittees and formalizing the specific a specific change to the committee rules. with that i will turn to my counterpart for his opening statement. >> thank you very much chairman hatch. on behalf of the side of the day is, is i, too want to welcome our new colleagues sen. coates however, and scott. i have enjoyed working wi

economy. todd horowitz at the cme. todd, about that improving economy, if we're doing so well why do we have zero interest rates. the interesting thing, not only are folks buying stocks with the dow up 212 points but they're also buying bonds, no yield bonds. why? >> hello, david, happy new year. look at the overall picture, let's look at the worldwide economy, it is collapsing. oil crushing every single day. we have a lot of overall pressure throughout the world. so is still plenty of fear. fear doesn't always play out only in the vix. a lot of tame it plays out in the bond market. we're seeing tremendous amount of interest in u.s. dollar, forcing yields lower, bond prices higher. overall fear of the collapsing economy throughout. if you look, if you want to go into the berman bund for example, you're getting a half a percent. the u.s. becomes again the cleanest shirt in the dirty laundry with higher yield. bottom line, world economies are fossing "money" out. they're still chasing some sort of money with a tremendous

economy. a majority of the aides say this will discuss something else. happy new year to you. >> happy new year. >> let's talk about the quantitative easing expectations in europe and then move on to asia. the bond markets in europe and the euro are suggesting we'll get bond-buying at the first ecb meeting this year. is that what you agree to expect? >> that certainly seems to be what is being priced in by the movements we're seeing in the last couple of days in the euro. and i don't know if we have any huge insight around the workings of the ecb. it is clearly a very difficult decision for them to make creating tensions within the managing board of the ecb. and so it seems likely we'll see something like that in the first few months but whether it is actually this month we'll have to wait and see. >> and is the question as to whether we get it or not, is it an economic one or does europe need this sovereign bond buying or is it a political one as to whether germany allows the workings of the

we need to start growing american economy, not washington's. our challenge, our opportunity is to pass common-sense solutions that will help expand opportunities for middle-class families and businesses. solutions that address the true drivers of our debt and begin to balance the budget. solutions that repeal obamacare and replace it with patient-centered reforms that will help constituents have better access to high-quality health care in america. our job is to push for conservative reforms, show the american people we can make progress, and show the people our vision for the future that will help improve their lives. that is exactly what we plan to do, and i am particularly happy that the light went out. [laughter] very happy today to have the senate majority leader mitch mcconnell, my friend, with us here. >> thank you. we are pleased to be here today. the announcement i want to make is senator joni ernst will be delivering the response to the state of the union for our side this year. she is a perfect choice. americans voted for change, and

look at fundamentals in the economy now. they're pointing towards this is being a real -- >> sustainable, long term. >> and acceleration. >> i also asked her specifically if she saw any bubbles in financial markets including in the equity markets. while she is not making any specific recommendations to investors, she did say that she does not see any bubbles out there right now so. take that into our discussion. >> michael cleveland fed president loretta mester who peter had great interview with said no. that the rates will potentially go up. the economy will probably be okay. you think otherwise. why? >> i think the way she said that is very carefully crafted. the fed is always good about watches the words. in all reality what the fed is looking for, they're looking to see that the economy is strong on its own footing strong enough to support an increase in interest rates. if we do see that increase, which, candidly i think wording actually lended a little bit towards looking for a reason to push that increase off a little

the kind of economy we have and the kind of economy that gives us achievement of a full employment objective is not an economy that a central banker can leave with zero rates, let alone zero rates forever. and they'll look at inflation as at transitory low, and a couple of years from now inflation will be higher. it isn't going to be zero rate. the question is when do we have a small rate hike and what will the path be because the economy is going to get very hot. tell me what you could tell janet yellin right now about when to raise rates, especially in the scenario that we just laid out. declining headline inflation assuming even the unemployment rate if it drops, there's no wage inflation. what do you tell janet, alan? >> zero rates and negative real rates, small positive real rates. doesn't make any sense when you have an xhst economy has really moving very strongly with good momentum, and so the central bank has to lean against that by raising short-term rates. that's the history of monetary policy. always leaning against a strong economy because inflation will show up later. they don't

it is a bad sign for all of the russian economy.ome people think it is good for russia because finally the russian economy will be and will get away from the oil needle. i don't believe in that. >> we have seen the price of oil fall before. >> but i didn't see changes in the russian structure of the economy. some people believe the structure of the russian economy will change because of the oil price. i am not so convinced. i think we will just suffer for a couple of years, we, as the russian economy. >> it's interesting you mention unemployment. unemployment is something russia hasn't had very much of at all since the collapse of the soviet union. >> this oil price, i'm sure it will happen. we will make a decent amount of money this year and next year, but this oil price will make unemployment, and unemployment will create further pressure on the russian consumer sector, including banking. in such an environment, it is very difficult to work as a businessman. you cannot make a business plan in this climate. things change so quickly

and biggest economy did fall into deflation. the first time in five years. we're looking at the xetra dax trade flat. cac 40 down about .2% and smi down about .6%. >> yesterday the story was to focus on greek bond yields which spiked 10.2% on the ten year. the three year is around 15%. so spiking on the short end of the curve particular. the ten year did pick up a little bit yesterday but it's back to where it was at 1.73%. >> all eyes on russia as well because we continue to see further volatility in the russian rouble. extending losses against the u.s. dollar with an hour to go -- you can see that spike in the last ten minutes. take a look at that chart hitting a session high. ahead of that announcement russia's first deputy prime minister has said the government and central banks should pressure banks to lend more in order to boost growth. so expectations high of that anounment. let's get to jeff who is live speaking to experts on what to expect in the next half ahour. >> this is fascinating because if the central bank does c

economy, you think about it, what is it? it's largely a service-based economy. services just aren't traded all that very much. so you think of some of the bigger sectors in the economy. start with health care. how much is that affected by growth in the rest of the world? zero. education. how much is that affected by growth in the rest of the world? zero. >> construction, very little. if you look at the big sectors in the u.s. economy, they don't have a lot of ties with the rest of the world. so a real significant slowdown or downturn in the rest of the world would certainly hurt, but if we're talking about slower global growth, it doesn't cause recession. >> final question, jay, and, of course, this is the one so important to many viewers, and that is wages. we've seen a slight uptick in the last employment report. do you think this could be the year when u.s. workers start to see meaningful increase in their paychecks? >> i think it potentially could. keep in mind what's important at the end of the day is not necessarily, you know, what you see in your paycheck

will we accept an economy where only a few of us do spectacularly well? or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort? (applause) will we approach the world fearful and reactive, dragged into costly conflicts that strain our military and set back our standing? or will we lead wisely using all elements of our power to defeat new threats and protect our planet? will we allow ourselves to be sorted into factions and turn against one another or will we recapture the sense of common purpose that has always propelled america forward? in two weeks i will send this congress a budget filled with ideas that are practical not partisan and in the months ahead i'll criss-cross the country making a case for those ideas. so tonight i want to focus less on a checklist of proposals and focus more on the values at stake and the choices before us. it begins with our economy. seven years ago rebekah and ben erler of minneapolis were newlyweds. (laughter) she waited tables. he worked construction. their f

economy. there is new language about inflation running too low, but they expected to eventually rise toward the 2% target and they are factoring and international circumstances. let me walk you through the statement -- first of all, the new language on the economy. information received since the federal open market committee met in december suggests economic activity has expanded at a solid pace. labor market conditions have improved further. some of the new language on inflation -- inflation has the longer run objective, large a -- largely reflecting declines energy prices. inflation compensation measures have declined. survey-based measures of long-term inflation expectations have remained stable. like a lot to say inflation is anticipated to decline further in the near term. the committee expects inflation to rise gradually toward 2% over the medium-term as the labor market moves forward and transitory affect dissipate. the committee continues to monitor inflation of elements closely. as a

here's the imf chief economist. >> the underlying weakness many economies, many emerging market economies are revising the prospects down. that is decreasing growth today. and we think [indiscernible] >> the one exception in the new forecast for the method is the united states, upgrading its forecast for u.s. growth to 3.6% from 3.1% in october. in ukraine, fighting has picked up between government forces and rebels backed by russia. there's a battle over the control of the airport in donetsk. ukraine is accusing russia of terrorist activity after a bomb blast in the eastern part of the country. 13 people were wounded. >> it appears amazon is really going hollywood. they won its first major television award last week and now amazon will start making feature-length movies for theaters. four to eight weeks after the theatrical release, they will be shown on amazon prime online streaming service. last week they said they hired woody allen to write and direct a new half-hour tv series. plan on going to the super bowl? it won't be cheap but it may be cheaper than last year. going for about $29

of this on the economy. is there a sense of the breakdown at the white house and how much this speech will be divided? >> they say it will definitely be more domestic. presidents in both parties want to talk about their agenda, international policy, national security is not always the top bid. unless you're building the case to war. we certainly saw that in the bush administration, various states of the unions. they say there will be a lot more about the economy, taxes, domestic issues and national security. they'll be talking about gitmo as well. he will reiterate his call to shut it down. specifically in isis, i think it's also interesting the president tonight will specifically call on congress to give him a new authorization of the use of military force against isis. one year ago in this same venue, he told congress that we were getting off a war footing. tonight he's doing just the opposite, bret. >> ed henry at the blouse as we look live at the house chamber. we just saw the first lady, michelle obama,

the economy 32 work 57 times. judy, he did mention debt and deficit five times, just a quick count there at the end as you were mentioning that. these are all president obama's words clustered together from 2009 to 2014. last time around you can see economy, jobs and work really stand out, and that's a big difference from president george w. bush who, in his speeches, you see much more foreign policy dominating. we have iraq, terrorists, must, fight, weapons, all stand out much more in that cluster. president clinton before them, people, work, children, new, all of these stood out. that was in a peacetime when president clinton talking about domestic issues and much more known for "i feel your pain." >> ifill: i want to ask you to pick up on that because i'm curious to the degree a wartime president has a different state of the union speech. starting with you, mark. >> absolutely to domenico's point. bill clinton said sort of wistfully the tragedy of his president was he didn't have a crisis or a foreign challenge

the etsy economy we see is really about creating an economy where everyone wins at every step of the way. so the way etsy works we're obviously an internet platform, but when you sell something on etsy etsy's cut is 3 1/2%, the artist cut is 96 1/2%. all the money is going back to communities everywhere. there is not a great sucking sound to bentonville arkansas, for example. not to name names. we really see this our 3.5%, as etsy become more successful, we have, that fee has not been raised really since the company started. so the etsy economy sees a really fair economist. where it is also getting into off-line retail. so i mentioned sara and milk and honey luxuries. we have also built a wholesale program. boutiques and retailers are now buying from etsy sellers and we're brokering the wholesale deal and again, the .5%. so the etsy economy is really about looking at economy zero sum way, how can i win, how can etsy win, it is how can etsy do well and suppliers do well and everyone take a fair cut and every win do well. that is a -- and everyone do well. >> you have also written abou

and maintain stability in those economies. point number two, when we aligned the reforms for the country to restore his position, we were always mindful of the poor people, the safety nets needed. i will give you an example. the pension system in greece the average pension in greece is the same as the average pension in germany. but, when we suggested the reform of the pension system, we said, below a certain threshold, you cannot force the needle, you cannot change. you cannot put fuel in a situation where it is too hard. so, we have that in mind. in many countries we have reinforced that point. we are doing it also, the reforms of the subsidy system. if you take a country like egypt, for instance, that is going through a reform of its subsidies, they cannot remove the subsidies just like that because a lot of poor people rely on fuel to go to work or do a little bit to get by. these people cannot suffer as a result of the reform. to have to use it to target those actually need the money. >> i'm looking at the time very sadly

economy and a weakening global economy. and let's not forget also the geopolitical factor i still think hike in the summer they'll go very slowly. >> what's clear is the majority of the fed had plan to raise interest rates this year that could still happen. but the data to support a hike stable to rising inflation and rising wages is so far failing to cooperate. for "nightly business report," i'm steve liesman. >> so let's turn now to our two experts for more on the fed, the markets and the economy. john man li, chief equity strategist with wells fargo funds joins us and chief economist at fact and opinion economics. welcome gentlemen. pleasure to have you here. >> thank you, sue. >> john let me start with you. the market sold off sharply today. we finished off our worst levels certainly, but seems though the dollar and oil prices are affecting earnings not to mention data. how worried are you about both oil and the strengthening dollar? >> well i'm worried tonight, but i don't think i'm going to be worried in a couple week

economy. the federal reserve's latest policy meeting confirmed interest rate won't move up soon or fast here. put it all together and stocks broke a five-session losing streak despite news of a terror attack in paris that left 12 dead. the dow surged 212 points. nasdaq up 57. s&p added 23. oil prices closed higher for the first time in five sessions after u.s. crude inventory showed a surprising drop last week even though gasoline stockpiles jumped to record high levels. u.s. crude settled 72 cents higher, finished at $48.65. brent up a nickel at $51.15 a barrel. the consumer prices fell two tenths of 1% and raising worry about the threat of a japanese style deflation. what could that mean for the european central bank? lee reports. >> reporter: the death of the financial crisis in 2009. that called deflation and it can be a big problem for economy. when prices are falling, consumers put off purchases thinking whatever they want will get cheaper if they wait. that makes the economy shrink whic

>> the german economy is much bigger.w is that yesterday, negative inflation reading is not so much fundamentally but politically but allows mr. draghi to build the core. we are calling for qe and surprise it did not happen in december. if you look at rocky and the space, -- draghi in the space he needs to build support. it was a shot that needs to convince the rest of the ecb. >> he used the word legality and he said it was not be legal. they are way below their inflation target. >> if they come out with qe, you tell me what is the number they need to throw out of their? 500 billion, the target that's not going to disappoint? >> remember, they made a very clear goal of getting a balance sheet back to previous levels around 3 trillion euro. they need to be quite a bit. the japanese have been very successful at this. they keep going above market expectations. that is a challenge that ecb needs to be allowed. >> big results. you can have a debate about what it has done for the economy. the euro/dollar 118. why exit? >> we p

economy?ng to take a look at the headwinds and the tailwinds and debate whether or not the economy is ready to fly like an eagle or cheep like a sparrow. >> a little steve miller. >>> stocks are ripping higher this thursday as we approach the final hour of trade. right now we're sitting around session highs. we've got a good rally on our hands with the dow sitting at 17906. and by the way, a bit of trivia for you, ty, and our viewers and listeners, on this day in 1987, do you know what milestone the dow crossed for the very first time? >> i do not. it was a lot lower then. >> 2,000. do you believe that? closed at 2,002. >>> let's bring in cnbc contributor peter costa. what do you make of the price action over the past couple days coming back from a lackluster start to the trading year? >> well, i'll tell you what i think it is. it's two things, actually. i think the market was oversold coming into yesterday. now, you know, another couple of days of this, you know, another 100 points tomorrow,