i am erik schatzker. i paid bruce flat a visit.s been a tough few months in financial markets. u.s. stocks are in a correction. oil fell below $30 for the first time since 2003. flat does not seem fazed. bruce: they want to own tangible assets. what investors in the stock markets get confused with is the underlying asset value of what is there. as investors, from time to time, it is good to have stock market access, and from time to time, it is not. it often doesn't -- those prices vary. today, you are seeing a real asset companies are not trading as well as they were. the fundamentals are very good around the world. there is a rope bust -- robust amount of money. erik: does public market real estate -- is it undervalued or cheap? >> you will see more privatization around the world, pipelines, real estate businesses, as that transition changes. erik: do you feel more comfortable buying or selling? bruce: we are always doing both. there is always somewhere that does not have enough money. what we do is move the money to the location

i am erik schatzker. thank you for watching bloomberg television. ♪ . ."brilliant ideas," powered by hyundai motors. narrator: the contemporary art world is vibrant and booming as never before. it is the 21st century phenomenon, a global industry in its own right. "brilliant ideas" looks at the artists at the heart of this. artists with a unique power to aspire, astonish, provoke. in this program, pioneering film artist diana thater. ♪

i am erik schatzker.uce flat of visit. -- a visit that is near to the headquarters. it has been a tough few months in financial markets. u.s. stocks are in a correction. oil fell below $30 for the first time since 2003. cracks are showing the junk-bond market. flat does not seem fazed. bruce: we are finding money in the real world market and they want to own tangible assets. what investors in the stock markets get confused with is the daily movements of stock prices confuse them about the underlying asset value of what is there. as investors, from time to time, it is good to have stock market access and from time to time it is not. the price is very -- prices vary . those prices vary. today, you are seeing a real asset companies are not trading as well as they were. but the fundamentals are very good around the world. there is a robust amount of money wanted to go to work and be put to work in real assets. erik: does public market real estate is undervalued or cheap? >> you will see more privatizations ar

alix: erik schatzker joins me now. was that surprising to you? erik: if you think about what brookfield does and has done, no. it is if you analyze what he says against the context of the here and now. is the voice of patient capital. he does not share the shanghai composite sales up 7% in the day. -- does not care. business.t his his business is buying property, commercial real estate, apartment buildings, malls, that kind of thing. infrastructure, bridges, toll roads. he is a cash flow investor with a long-term, patient capital, raising long-term debt, capital in public we trailed -- publicly traded real estate vehicles. he can afford to be a contrarian. that's why they been successful over the long term. that's why he draws comparisons to warren buffett. brookfield has vastly outperformed berkshire hathaway by some four times if you measure it by total return, which is pretty amazing. when you hear these, you always want to know, what is he like -- what does he like an what doesn't you like -- and what doesn't he like? bruce: we are in it in so

dallas larry fink with erik schatzker and david westin in dollhouse.ere to break down contrarian , speaking with different investment strategies. clearly defining two different sides of this market. >> i would say since the middle of wednesday, we are up about 5%. good.g they are the big asset manager. start buying again on wednesday, that is definitely an encouraging sign. ignore what they are saying. that is definitely on the forefront of people's minds. think recognizes we have capitulated a little bit from maybe some of our more bullish stances. definitely something to keep an eye on. i think a lot of his argument relies on the sense of -- the sense that outside foreign investment may destabilize a little bit. right now the balls are winning. next week could be a totally different story. >> why are there such differing opinions? >> it comes down to china and oil. are going to bounce off 30, we are going to go all the way down to 20. you have guggenheim partners, based on the fact that oil is going down to $20 per barrel. that is the sticking point.

we went to go to erik schatzker. ooking at citigroup and on the top line, we see what appears to be a b. the dollar .6 in earnings and $1.06 in earnings as opposed to $1.05. they grew revenue and this appears to be the story of citigroup earnings. there is a lot more work to be done. expense management critical, so in revenue, an increase of 3% year over year. in a no growth environment with the global economy as we know that is challenged, citigroup manages to increase revenue. how did they do it? i don't have a good answer yet but i need to go deeper into the numbers. expense management another issue. it played up favorably at j.p. morgan and the reduced expenses by $400 million in the fourth quarter. in citigroup's case, not a great story. it looks good on a year-over-year basis, but quarter over quarter, expenses rose by some or hundred million dollars. almost by the same number jpmorgan was able to bring it down and citigroup's expenses rose. there is a lot more to be told in the story. for example, the interest

erik schatzker has great interviews coming up throughout the day. talking about volatility. and the price of oil. let's get the market check because a lot of european stocks under pressure. if you look at the stoxx europe 600, i do not think there is one stock that is gaining in today's trading day. you can see the ftse down 3%. dax down 3%. the cac 40 the biggest loser over all. cars and exporters are down. this is after this morning. index wente topix into a bear market. if sell 20% from the highs of last august. coming up, plenty more from davos, looking at the challenges and key players who can help influence change. stay with us. ♪ francine: welcome back to "the pulse" live from the world economic forum. it is day one. two days left. getsy morning as the rest west underway. here is what they have to say about china. >> chinese authorities have plenty of ammunition to stabilize the economy. what is true for europe, still easing, true for the u.s. is not turrue for china. >> oil price is more important in china. >> china is in transition. we are

erik schatzker: it depends on if this is a temporary correction. >> the absence of fundamentals suggestthis is a strong market reaction against a background of solid global economic growth, not phenomenal. this is solid growth of 3%. as you know and report on every date, the markets are very irrational. the animal spirits do rain. companies that were worth 40% more six months ago, nothing changed and they are dropping. the difference this time is oil. >> i was not somebody who thought that the fed should he raising rates quite yet. i would like to see a little more certainty in the global economy. >> do you like larry summers argument? >> i don't know where i go on the overall secular stagnation. if you asked me what i think is the great struggle of our time or great challenge of our time, we have increasing globalization and technology that is dramatic. it's doing all kinds of fantastic things. there is one thing that's not as clear, is it leading to a broadening or hollowing out of the middle class? i think in each advanced country they are wrestling with that right now. erik schatzke

was tim adams with erik schatzker. still ahead, stocks in the u.s.ave alternated up and down and we will try to make sense of all of that volatility as we head to the break. lednasdaq down about .1%, lower by stocks like netflix. the s&p 500 also up about .3%. ♪ david: welcome back to bloomberg markets. for the past six sessions, stocks have alternated up and down days with an average swing of 2.7%, almost triple of what we saw last year. these situations are the wildest 2011. but the question is why? we will answer that by trying to talk to our stock reporter. the question we have here is looking for some reasoning behind this. it is difficult and a lot of people are saying we are tracking with oil. at theup and we are up same time, it is extremely volatile. you have days like yesterday where we are down with a lot of volume in and started slow climb up. there's deftly a sense of frustration with how to we judge what's going on when we have these wild swings. david: so much of this is sentiment-based. dani: a lot of people said it was the market tec

erik schatzker: it depends on if this is a temporary correction. >> the absence of fundamentals suggest is a strong market reaction against a background of solid global economic growth, not phenomenal. this is solid growth of 3%. as you know and report on every date, the markets are very irrational. the animal spirits do rain. companies that were worth 40% more six months ago, nothing changed and they are dropping. the difference this time is oil. >> i was not somebody who thought that the fed should he raising rates quite yet. i would like to see a little more certainty in the global economy. >> do you like larry summers argument? >> i don't know where i go on the overall secular stagnation. if you asked me what i think is the great struggle of our time or great challenge of our time, we have increasing globalization and technology that is dramatic. it's doing all kinds of fantastic things. there is one thing that's not as clear, is it leading to a broadening or hollowing out of the middle class? i think in each advanced country they are wrestling with that right now. erik schatzker: j

david: speaking to erik schatzker, and erik schatzker asked about the global selloff. >> you have economic things, such as the slowing of the u.s. economy, which has been pretty gradual, but consistent despite strong parts of auto and housing. you have got energy goalie down so quickly that you can almost haswind burn, and the world trouble adjusting with things that happen quickly. you have got china as an issue, which is probably overdone, because the rest tends to see china through its markets and its currency, where there have been a lot of major footfalls and mismanagement of the stock , and you did afterwards, and that creates an issue of confidence, and the same with currency, so when you put those factors together, you have an unattractive brew along with the concern that the federal reserve will raise interest rates and slow the economy further in some effort to save it. a guest says this volatility is here to stay -- our next guest says this volatility is here to stay. me ask you about what steve schwarzman was saying here. he is saying that china is overdone. is that something t

here is our erik schatzker. erik: thank you very much.again in davos with steve schwarzman. welcome. steve: thank you. are: the volatility we seeing in financial markets, it's broad based selloffs -- what do you think is behind it? steve: there are a lot of things. you have economic things such as the slowing of the u.s. economy, which has been pretty gradual but consistent, despite the strong parts of auto and housing. you have got energy going down so quickly that you can almost , and the world has trouble adjusting to things that happen very quickly. issue,e china as an which is probably overdone because the west tends to see china through its markets and its currency, where there have been a lot of major flip-flops. and mismanagement of the stock market, and what you did afterwards. so that creates an issue of confidence. and the same with currency. so when you put those factors together, you have an unattractive brew, all with the concern that the federal reserve will raise interest rates and slow the economy further in some effort t

davos let's head back to were a lot is happening, including erik schatzker with the founder and managinger of gdp growth. erik: bill, good to see you here. >> good to be here. it has a very diversified portfolio. your portfolio companies, what are they telling you about the u.s. economy and global economy? >> we focus very much on the micro instead of macro. we have been able to develop a portfolio that grows at a very rapid -- 30%. companiest building around the world in areas that we have a real understanding. appealing is more right now -- emerging markets, or the developed world? greathink there are opportunities in both places. in general, we have to inerwrite a better return the developing markets. we have been able to achieve great returns in the developing market, but the risk inherent in markets, occurs in these days, the political challenges, transparency issues, etc., means we have to deliver returns that would be attended to that kind of profile. erik: look at those risk whether they be currency movements, the pace of economic growth in china and what that means for economies

he spoke exclusively with erik schatzker. the dow jones is down about 2.2%. the s&p down 2.5%. bloomberg markets. ♪ david: welcome back. the major indexes, the dow jones is down 363 points. i want to go to julie hyman at the markets desk for more on the slide we are seeing. julie: the slide is deepening, thereg momentum and doesn't seem to be a particular catalyst. just worsening sentiment as we are seeing the indices tumble. one of the negative signs is that this selling is happening on high volume. seeing what market artisans call capitulation. heavy volume selling that kind of exhaust itself. my bloombergt terminal. i'm looking at volume by groups. all of them are up, health care and consumer discretionary are two of the worst performing groups. other market internals are 52 week lows. market, see gets in the you tend to see spikes in lows relative to highs. run offinitely seeing a an excess of 52 week lows versus 52-week highs. just another way of looking at what is going on in the market. consumer discretionary stocks, financials and all of them deepening their declines wi

betty: that was the ceo of moles and company speaking to erik schatzker in davos.uick note -- the nasdaq index .as turned in the green, up .3% it has been very rapid, the gains we have seen since about 1:00 p.m. today for the nasdaq. remember that at one point, it was down over 3%, a loss of 163 points, so we have made that back and then some in just the last couple of hours. the equity markets not the only ones seeing a lot of volatility right now. bond buyers taking fewer chances on risky debt and demanding 16.6% on extra yields to on the lowest rated u.s. corporate bonds. lisa wrote about this phenomenon for bloomberg. bartels was telling us to look at the high-yield market and how they are repricing their risk right now, the spreads are widening, and that's what we are talking about. lisa: exactly. conclusions are perhaps a different than what she was talking about because historically, credit has led equities. in this cycle, it has been no different. high-yield started spilling off meaningfully last year around august, september. the drop in the overall high-y

let's bring in erik schatzker. wti $30 a barrel. nd much more with james zenni. he is the ceo of the capital z capital partners. welcome. >> thank you. erik: let's begin with vonnie quinn. authorities in libya think isis is to blame for a bomb that killed at least 60 people in a coastal town east of tripoli. a suicide bomber drove a truck into a crowd. at least 200 people were injured. exactly one year after the charlie hebdo attacks, a knife wielding attacker in an explosive vest is killed. by islamicere killed extremists at the offices of the satirical newspaper last year. el niÑo is giving california headaches. heavy rains flooded roads and caused mudslides. will be thel niÑo strongest on record. local news 24 hours a day, powered by 2400 journalists. we see this big market selloff. futures all indicating a sharply lower open. alloway whatacy she's going to be watching. have an asian you led selloff, you see it decelerating as the day goes on. we will see if that happens this time around. take a look at the shanghai composite for

erik schatzker is listening to the conference college began a few minutes ago.? >> everyone is waiting to see a jamie dimon will characterize his expectations for 2016. we are hearing from area like and she said a few things that stand out. gas. begin with j.p. morgan took $550 million in 2015 because of the deteriorating environment for oil and gas companies. marion lake says the company expects to take more of those for 2016 but they will not be significant unless prices remain at current levels for a while. she did not specify how many weeks, months, or quarters. if we do notwords, have 30 dark crude, it will not cost j.p. morgan a lot of money in the credit quality of its loans and energy companies. they also talked a bit of a client activity in the markets. there was lower client activity and lower inventory. no more color or detail yet on the outlook for capital markets. how important it is for j.p. morgan but also bank of america and morgan stanley at citigroup, which have yet to report. they talked a bit about the outlook for interest rates. we know j.p.

we went to get more perspective there and we're joined by bloomberg anchor erik schatzker. : it does pay to talk to a few people and figure out what is at the top of their minds as far as concerns. let's refresh everybody's memory as to what the major concerns behind this extended selloff are. oil prices are alarming to people, the speed and magnitude of the decline in withdrawal of fed stimulus, the major leg of the stool on which the global recovery had been resting has been taken off. the fed is in tightening mode. europe's recovery continues to be fragile. course, what is going on in china, almost impossible to know but i will say this, having talked to several people who do thatess in china, they say the real growth rate in china is probably those are two 3% than it is to 6%. here's a fascinating story, unsubstantiated, but these are the kind of things that fuel concerns and lie behind the selloff in the market. i heard from somebody the other day that a former u.s. treasury secretary was in china talking to one of his former d, how fasts and aske is the chinese economy

erik schatzker joining us from new york with more. james gorman is going to be the ceo of morgan stanley for longer than he initially planned. it looks as though he will be there for at least the next five to seven years and possibly all the way through to his retirement at age 65, 8 years from now. who has led morgan stanley's retail brokerage business, really the crown jewel of the franchise, is on his way out the door. it is impossible not to look at this as a success in -- succession situation. greg fleming has always been seen as a potential successor. as long as morgan stanley stock is doing as badly as it is, you know the question will have been raised. with him leaving, it it takes that issue off the table. emily: is gorman trying to shore up future leadership? rik: he is cementing his hold on power. fleming's departure removes the threat. what now needs to be seen is who steps into the shoes of those deputy ranks. morgan stanley does not have many people in their 50's who are eligible. we will see the next generation of leade

erik schatzker reporting from bangladesh.g up house, the development of self driving cars, proposing $4 billion over a period of 10 years for pilot projects, including the program to test self driving cars by invested in technologically connected roads. earlier this week, i sat down with google x founder. transportation as a service, the scale is different from owned cars. most of us who own cars, we almost never use them. they produced costs by sitting in the garage. service is about a quarter of what it would be for a human owned and driven car. coming up, we are wrapping up the volatile week that was. that is next. ♪ emily: it is time for the week in review. i am joined by our venture johnson,ditor, cory and our guest host. cory: the stocks -- autonomous cars, cars, cars, cars. what we saw from ces was stocks the thoughtbecause was they would be the beneficiaries of what was going on inside the car. what we have seen this week, those stocks have sold off like a last year's fat. -- last year's fad. emily: i am more excited

emily: erik schatzker sat down -- we could see a reset for fundamentals for unicorns. >> there was aot of enthusiasm and capital that came in to the market from investors that have historically invested -- i say they may look like tourists. very incredible public investors that have not done that kind of investing before. i think we are going to see a lot of that value retreat. and then they are going to regret those investments. they will likely regret those investments and you will see a reset back to fundamentals. valuations have to be based on a multiple of cash flow's, not on a multiple of revenue or theoretical cash flows. disciplinental around value investing, i think you will see it reenter the equation. finally, has technology made income inequality worse? that's what -- said when she sat down with tom keene. take a listen. been a great has boon to productivity. it reflects tremendous innovation, but it also has displaced lots of workers, it is laborsaving, it is skilled biased so it helps those at the top, it is a major contributor to income inequality. it is also the case

talking about how tough it is to to rise to the top of a big bank is erik schatzker.er to rise the top of a major firm on wall street now. that will change several years from now, because james gorman at morgan stanley is going to be five years older and that much research retirement. the same thing is going -- that much closer to retirement. the same thing is going to happen to jamie dimon, same thing will happen with lloyd blankfein, and that will most certainly start the speculative fires burning again on who might become the ceo and lay the groundwork for all of those internecine conflicts that make this parlor game from watching the rising and falling stars on wall street, so fascinating. but you are absolutely right, right now there is no movement. gary cohen has been a bridesmaid at goldman sachs for much longer than he would have liked, and there is no sign that lloyd blankfein, his current bout of ill health notwithstanding, is going anywhere. scarlet: where do these guys go? erik: that is a question, and i've been asking around about greg fleming -- why the

david: goldman sachs president speaking to erik schatzker and stephanie ruhle.g up, so much for the bromance between donald trump and ted cruz. going after his rival on immigration. coming up at the top of the hour, the cio of goldman sachs private wealth management. that's to come on bloomberg markets after the break. ♪ david: welcome back. it's time now for the bloomberg business flash, and a look at some of the biggest business stories in the news right now. earned $33 million -- $23 million -- goldman sachs ceo earned 23 million dollars in salary and bonuses for 2015. say drillingists global contributes to warming. united airlines may finally be headed toward labor stability. the carrier has approved a contract extension that includes a pay hike. to combine struggled the work force after its merger with continental. >> looking at stocks right now earnings laggards. let's take a look first at american express. american express, you can see for most of the day as we have been reporting has been strengthening the bottom. we are pretty much at session 12.75%.wn

bruce sits down for exclusive interview with erik schatzker. his thoughts on the u.s.hy he says it's the perfect time to invest in china. larry summers advises the fed not to ignore current market turmoil. he says investors are sending an ominous signal to policymakers and should prepare for the worst. for more on today's activity, let's head over to the markets desk where julie hyman has the latest.

i have heard erik schatzker interview a lot of ceos from the -- big banks and the thing he hits on everyime is the efficiency ratio. an environmentn where revenue is not easy to generate, they are finding it hard to grow, so they have turned to cost cutting. that is not a good thing for a lot of traders and bankers on wall street, but they have been doing a pretty good job of it in the last couple of years, and we will see that in the fourth quarter. talking about layoffs? we have had tens of thousands of jobs lost. >> we have heard about the layoffs. the people they have they are paying last. they have been rationalizing real estate footprints. writing smaller checks or fewer checks to the and private investors over the multibillion-dollar settlements for allegedly selling ofmarkets or mortgage-backed securities. that was one thing that really pushed costs up in 2012-2014, and a lot of those are fading away now. this? how unexpected was it was such a high profile case, for him to essentially get off scott free. >> he would probably argue that he has paid for this, but it is much smaller

erik schatzker, let me start with you. what kind of response are you getting? rd wants the letter to speak for itself. if you're going to send a shot like this one, you want to wait and see what kind of response you get from yahoos board before you decide to go nuclear and announce a proxy fight. scarlet: in terms of what is next, what can you tell us about star board? what is their usual mo in approaching a company? >> they are focused on management changes. a track recorde of the largest dividend. they do not have a track record -- they want to see structural changes at the firm. it is important to note that they only hold a .75, less than 1% of outstanding shares. they need people to come aboard. the reality is in terms of what is next, the entire board comes up for reelection this summer. this is the first shot on its way towards a proxy fight. scarlet: justice be to your point, if you come inside the bloomberg terminal, this is the function that shows the security ownership of the company. for yahoo!, star board does not have a huge stake. they are number 2

erik schatzker has a look into the volatility question and joins us now.you have done bloomberg terminal functions. what does volatility really mean? show it to people and that's the value of these functions. this is data visualization. we can show it's happening on my screen. the function is called hrh. it stands for historical return histagram. columns shows us the distribution of daily returns on the shanghai composite index over 2015. it's back to that chart, not just the blue bars but you see that orange line running through the blue bars, that's normal distribution. it's a bell curve. according to the laws of normal distribution, we should never % butaily movements of -7 in 2015, it was a volatile your for chinese stocks. that shows us it was well outside the laws of normal distribution. that's called the fat tail. it is oh is trying to tell us that financial markets don't follow laws of normal , that theon unpredictable is exactly what investors should expect. thatss the consequence of is a 7% move in the shanghai composite should not be as shocking

david: erik schatzker is joining me now per welcome, erik. co-chiefen is executive and co-chief investment officer of the world's largest hedge fund, the $155 billion bridgewater associates. i cannot think of a better person to have here to explain to us what is going on with the markets because bridgewater is known for having a deep understanding. greg: it is great to be here. the first thing is to understand the secular backdrop. the biggest thing we are trying to help people understand in stress tests is that we are in a major secular turning point. years,982, the last 40 the developed world economies have been stimulated by a major debt cycle. rates wasn interest lower than the one before because it was necessary to offset the global deflationary pressures, to create more debt high wasrld, and each lower than the one that preceded it because it took less, because deaths were higher, to slow down the economy. was cycle -- because that higher, to slow down the economy. interest rates were not enough to offset the debt burdens and you got a

stephanie: it is time to welcome our co-acre, erik schatzker. -- coanchor erik schatzker.. stephanie: we're excited. >> i love the enthusiasm. erik: troy is with sky bridge capital, a manager with over $13 billion in assets. good to see you. we have the first word news. now few hours from president obama will: the executive action he is taking to reduce gun violence. mandatory background checks for private sales, and enforcement of current firearm laws. mr. obama's remarks are scheduled this morning at 11:40 a.m. eastern. kuwait is the latest saudi arabian ally to end diplomatic relations with iran. attacks onmpted by saudi officers by protesters. they were angry when saudi's executed a shiite muslim cleric. the philippine fighting toill stop focus on politics. manny pacquiao will have one last fight. back to you. matt: a big recovery in futures. 1%.re down about 1/10 of mimics the recovery we saw yesterday in the market. look at the dow jones yesterday, we got out for the entire trading day. a big rally late day, and and 50,back one on her 160 points. down 1.5%, buty not

guess who else is here, erik schatzker. erik: my opportunity to say happy new year.s? no better person to have with us on a day when markets are shaky, liam dalton, founder of axiom capital management. they have $3 billion in assets under management and lay him is one of the few hedge fund managers who had a good year last year. i guess that entitles you to a congratulations. liam: it is never good enough. erik: that is what your client say, no doubt. vonnie quinn is going to bring everybody the first word. --nie: saudi arabia's eyes it's execution of a shiite cleric sparked the attack iran.n ironic -- to work todayrns and repealing obama care tops its agenda. unlike dozens of previous attempts, this could reach the president's desk, and it faces a certain veto. the presidential campaign will start airing ads tomorrow in iowa and new hampshire, focusing on border security and immigration. it is hillary clinton never mentioning republican rivals. , i'm vonnies a day quinn. want to show people some things that are actually gaining before we get into the massive drop we

next, more from our partner's erik schatzker interview with book filled asset manager' ♪ vonnie: welcomes sellingin taketo take over for -- to over. michael dell could be in position for $4 billion. "the wall street journal" says he might make that much from the government repurchase of airwaves. he owns airwaves the sec wants to resell to wireless operators. stephanie: well, you may have never heard of brookfield asset management. as i said earlier, it sounds like assisted living, but it is the world's second largest asset manager, only behind blackstone. estate,us on real renewable energy, and infrastructure. of course, who would be game to talk to a toronto native company, our own favorite canadian, erik schatzker, who sat down with ceo bruce flatt. welcome back, my brother. erik: don't you love talking to contrarians -- a look at market volatility and say what is the big deal? they look at the declines we saw last week and see opportunity. bruce flatt is a contrarian. when we sat down, i asked him how -- what he felt about what we have seen over the last six months in china, brazil,

erik schatzker is with us as well. he has been covering this story on morning., cost efficiencies run out and you actually have to grow. when are we going to find that? we going to find that? chris: that has been the question for the last few quarters, if not the last few years. a bigger part of that is managers a margins with interest rates being so low. we saw some relief in that. income dollars are up quite nicely, a few hundred million dollars. hopefully, that is a sign of things to come. are starting to trend downward with a combination of modest growth and cost-saving measures. eric: is there a possibility wells fargo might surprise tomorrow. we saw jpmorgan report better than expected. also, there is loan growth that jpmorgan. if they are benefiting from certain factors, it would not be a surprise to see wells fargo similarly benefiting. chris: i think that's right. we are about 2% above the street. $1.04. i think the consensus is $1.02. it's very broad based. it was consumer, card, wholesale, commercial. we think we are going to see similar results in te

erik schatzker will join us from davos with david westin. erik: thank you very much, matt.. -- we have bob diamond. good afternoon. yourave done so much in career, being the ceo of barclays, the seven africa, people forget once what time you were one heck of a trader. with the trader's mindset, did you see this coming? bob: the fundamental underpinnings, china needed to slow down. leading into the slowdown, 40% was coming from investment spending. think about that. the peak and japan was 30% before the bubble. today in america in the u.s., it is 15%, so china had to have a slowdown. i think the commodity complex was going to be impacted by that, but the speed of these moves certainly surprised me and quite a few people. david: we have known that china's growth would be slowing down for a long time. bob: and we knew the fed was going to raise rates for a long time. david: exactly. why didn't the markets price this and to begin with? that is the question people are asking today feared this estimate is far, what is underpinning this? what am i missing? the other thing that is

i'm erik schatzker and i'm here with ken. emerging's, acquisitions, and restructurings.rter results. i do not want to talk about that. want to talk about what is happening. what is the volatility of financial markets doing to confidence? >> that implies things go up and down. over the last two weeks, it has been mostly down. but it is interesting. felt thisnagements about the economy for a while now. i think the slowness and the inability to maintain price has been a concern in boardrooms around the world for a while. erik: what percentage of the ceo's is you advise our ready for the recession. areany in their own mind planning for slow growth. it is hard to say because what happens is you come on the camera here and people portray their best side. in public, you will hear people's optimistic hopes for the world but i think what you're seeing with m&a's peoples realistic lots that they have to keep cost out of the system, any youe they can hear it if are in the junk market in the lower end, it is very different and there is a pricing reset going on. inc. retail will , cl

i am joined now by our co-anchor, erik schatzker. good to see you and welcome aboard. again. i am diet -- delighted to welcome henry. his company runs equity benchmarks, including the world index, analytical tools, asset managers use to make investment decisions pair welcome. henry: thanks for having me. david: here is the first word from vonnie quinn. vonnie: nuclear experts say north korea's latest weapons test is worry some. says -- experts say the lessons could be smaller making delivery more feasible. president obama -- it will reach president obama's desk. the bill would also defund planned parenthood. , parliament will debate than in donald trump from the u.k.. a petition signed by more than a half-million people. his mother was worn in scotland. news 24 hours a day powered by our 2400 journalists around the world. down 274 points on dow jones. the s&p futures down one and three quarters percent. nasdaq futures down about 2% right now. take a look at oil. one of the most interesting stories of the day, even with .ll the geopolitical unrest what is going on betwe

schatzker is erik here to ensure -- to assure us that this sky is not falling. >> i am messing aroundith my bloomberg terminal because i want to show you something. when you see dow industrials drop 500 points, i think it's fair to say that there are a number of people out there who wonder to themselves if this is 2008 all over again. the answer, fairly resoundingly, is no. come into my bloomberg terminal and i will show you why i say that. the yellow line is the stock market. is the s&p 500. it extends through today. stocks since the year began are down almost 9%. terrible, right? the green line in the middle is the high-yield market. the high-yield market was flashing warning signs in the fourth quarter. was a widespread expectation to perhaps stocks would follow high-yield, and they have, but the high-yield selloff has not continued at pace. the same these three lines clustered near the top represent treasuries, uni's, and high-yield cluster bonds. what that tells us is that everything is not converging to one the way it did in 2008. some sectors are performing well and making mone