we'll be joined by morgan stanley ceo james gorman and david solomon. >> president and coo is his newle. we'll be back in a couple minutes. 's at,li da-jotv t xtet... we..ipchgl ririce or.ousor.t.t.pr wen . >>> about a minute left on "worldwide exchange." want to highlight a few things we'll watch. >> the interviews we have coming up, james gorman is coming up. and in terms of david solomon from goldman sachs, an outlook for ipos and dealmaking under trump. >> and back home watch stocks like netflix surging in the premarket after blowout subscription numbers, stronger guidance and a profit beat. could it help the rest of the f.a.n.g. and technology stocks? >> that's it for "worldwide exchange." we'll be here all day for more interviews. i en unmi bac alofrcng d imitedsh b bpark >>> good morning. the financi the final countdown. we are less than a day away from the inauguration of donald trump. a live report from washington. >>> and netflix surge. the stock soaring, but is it still a buy at these levels? and could we see a shakeup at csx? it's thursday, january 19, 2017. "squawk box" b

and in the next hour, morgan stanley's ceo james gorman will join us live from davos.ind out what he thinks about the markets and the economy. stay tuned, you're watching "squawk box." nihe t need 5ornt lanag, tne lant le. >>> welcome back. the battle for the snapchat ipo is heating up. snap inc is expected to go public this spring with a value that could be as high as $25 billion. both the new york stock exchange and the nasdaq want that listing. late last year nasdaq hired a helicopter to film the manhattan skyline using the video camera sunglasses. it september the footage to its social media followers. and the nyse tweeted out a video shot from the floor of the exchange. the fees each exchange would earn from the ipo would be minimal but the company could help them earn future listings which are important to their business. >>> sir paul mccartney taking legal action to get his beatles songs back. he filed a lawsuit against sony atv music publishing to get the rights back to the songs that he wrote or co-wrote with lennon. he said the copyright act should let him re

james gorman is the -- chairman of morgan stanley.: up next, more from the world economic forum in davos. .he t shock of ireland we will bring you live in complete coverage of mario draghi's news conference. this is bloomberg. ♪ alix: this is bloomberg daybreak. we are going to stay in dallas right now. right now. >> he is the irish prime minister. thank you for joining us. when you talk about brexit and the uncertainties, it is unclear to me whether ireland will benefit from brexit because people will move out or whether you will lose a lot of people because of the trade relations you have a moment. >> there are a few things. not only in proximity but going back hundreds of years in terms of social, cultural and business and economic leaks. the northeastern portion of ireland, we are the only area with a land border. that area is protected by a legally binding agreement in terms of a peace process which was supported by america and europe. is to seesponsibility that those institutions are protected. alex with the u.k. are very strong

i've heard a lot of talk about things that just don't mean that much even though james gorman would like to see his traders do more business, the fact of the matter is that isn't going to get a lot of earnings into the banking industry. if you want to get earnings into the banking industry you've got to get to the capital rules, the liquidity rules. you've got to get to the liability rules. you have to get to the rules that affect how banks lend money. nobody seems to want to do any of that. >> what do you think, jeff? >> yeah, no, there certainly are some good things about financial regulation. i would specifically highlight liquidity. i think there's been some good things out there but i think the moving the ball, so to speak, comment does make some sense. it's a little hard to plan for the future when there's still a lot of unknowns and continually increasing capital rekwooermqui. the key forward is that we've gone from how much worse can things get in the regulatory capital front to maybe things could get better. if we could get a loosening up some we could see home lending increase,

could the banks see signs now of a james gorman top. should investors broadly follow suit. >> i'm trying to think what else the dimon bottom could have been? of course it had to be the stock market. >> was it the kanye west toss? >> there's that phenomenon. >>> we have full team coverage on today's action in washington. again, there was plenty of it today. john harwood is in washington. eamon javers is in washington. phil lebeau has details of the auto meeting with the president. john, the president and those executive orders getting a big boost on the back of the pipeline news today, john. >> reporter: bill, the president of the united states fulfilled his campaign promise to move ahead with the keystone and dakota access pipe lines project in the oval office. he signed executive orders to expedite permitting, to also expedite environmental reviews. he added a new wrinkle to the pipeline projects by saying they would have to have american steel. this is a condition that republicans in the senate rejected in 2015 when democrats tried to

. >> also because they're sending out forecasts, it means james gorman is on the earnings call, whichple focus on more than just the cfo. in terms of investment banks more broadly, there's consensus that the investment banks have run up more because they rely on policy of donald trump than the yield curve. what is your take on that? >> what a lot of investors are trying to do now given the significant run is see which policy tailwinds are priced into the stocks today. one name we're constructive on is bank of america. where what's being priced in in terms of rates is currently reflected in the stock, but other tailwinds like tax reform, deregulation, more robust loan growth, that's not reflected in the share growth. you have other names like goldman sachs, you can look at individual levers, it feels like more is being priced in, beyond higher rates, you're pricing in tax reform and other levers such as a more robust trading environment. it's about identifying where the best risk/reward is. >> pending this commentary that we'll start to get out of the banks, broadly speaking is the ban

talking to some bankers, talking with morgan stanley's james gorman yesterday about the rate hikes, that'sne of the key underpinnings of this bank rally. the fact that yields have risen, post-election, continue to do so this week on the back of higher expectations of fed rate hikes, better economy, inflationary policies. >> i think we should mention that morgan stanley interviewed, we asked gorman is 4% enough? he said no, he said more around 3%. there is that optimism around the trump inauguration, it is everywhere. everyone is optimistic, for me that makes me concerned about markets. i feel that view of the world is out there. even the cautious ones are still upbeat. >> the cautious ones are cautious about foreign policy, geopolitical uncertainty, it's hard to see how that influenced the markets. so far it hasn't. they brushed off brexit and trump. >>> in corporate news, shares of ibm are slipping. the company recorded its 19th consecutive quarter of declining revenue. still latest results beat wall street estimates. and ibm is offering an upbeat full year earnings forecast. growth areas

james gorman joins us tomorrow. joining us now is jim coulter of tpg. good morning.hanks for joining us. >> good morning. pleasure, although cold to be here. >> we'll be warmed by the context of this conversation. interest rates have gone up. is that a good thing for the economy or are we starting to see it's not? >> it's a question of interest rates are just going up or followed by growth. growth is good for the economy. right now we're in a period of uncertainty. i think there's more speculation than knowledge in the markets today. >> so you don't share some of the enthusiasm and optimism out there in the confidence surveys, whether it's business, home briders, small business, and investors with the stock market at near record highs. >> i came into the year reminded of one of my favorite quotes, which is f. scott fitzgerald, he says the test of a first rate intelligence is keeping two opposing ideas in your mind and still function. the two opposing ideas is there is an enormous amount of uncertainty. anyone who tells you how the policies will be rolled out should b

we talked this morning to morgan stanley's james gorman.ere's what he said about the economy. >> i think it's unlikely. i mean 4% would be a massive move. this economy's a $17, $18 trillion economy. china which is the second largest economy in the world is a $10 trillion economy and probably growing at 6%. and obviously that percent increase is shrinking. so 4% is unlikely. but if we're at solid 3% growth, i think that's a really good outlook for the u.s. >> and that was actually a little tempered compared to jamie dimon of j.p. morgan who told us yesterday that 3% to 4% growth is possible with the right policies. gorman doesn't see the risks being priced into the market accurately including the rise of populism which everyone is talking about here and geopolitical uncertainties. we talked deal making with goldman sachs' david solomon newly named -- he says confidence is returning to the board rooms but he also says there's some big uncertainties when it comes to deals like tax reform and the regulatory environment. >> we've had a tougher r

joe: that was james gorman, and the morgan stanley ceo, with bloomberg's erik schatzker in davos.time for the bloomberg business flash. american express says fourth-quarter profits fell more than 8%, as expenses topped analysts' estimates. eps came in a $.88, $.11 short of projections. amex is spending more to recover from the loss of its largest costco. partner, and we have some breaking news. this is president-elect donald trump making an appearance at the lincoln memorial, where there's already a concert underway. he is with soon-to-be first lady melania, his wife. music earlier at the lincoln memorial, a concert. all part of the inauguration festivities. it will become official around noon tomorrow. scarlet: president-elect donald trump arriving at lincoln center, where they had already been holding a concert. beautiful day. joe: look at that sky. pretty impressive. scarlet: this is bloomberg. ♪ scarlet: tomorrow we will bring you more interviews from the world economic forum in switzerland. you will want to stick to bloomberg for that. joe: tonight i will be looking at china

as well as james gorman, ceo of morgan stanley and brian moynihan of bank of america. lineup. the white swan about to reignite growth in europe? this is bloomberg. ♪ oliver: department of justice heads are holding a news conference on to cut a -- takata . they pled guilty and agreed to pay $1 billion to settle in investigation into their exploding airbags. shares in the u.s. are soaring on the news that this could be moving behind them. up twice as percent. are talking about china. take a look at my bloomberg. we have data overnight out of china and exports which is the yellow line saying 6.1% in december. imports which is the white line rose at less than half of pace. this data highlights the uncertainty and challenges that china faces with president-elect donald trump appearing to take office next week. joining us now to discuss the outlook is the chief economist at cambridge investment which has $83 billion of assets under management. thank you for joining us. and looking through your notes and thinking about where you see things headed, one thing i picked up on was

. >> looking forward on talking on james gorman, the ceo of morgan stanley. >> coverage kicks off againt 5:00 eastern. >> are you going to be this tall again? >> if they give me this tall of a box. we're equal height in switzerland. llwhtsts y abig e n >>> welcome back. more earnings after hours. kindleder morgan. >> that's right. kinder morgan with 8 cents a share. the revenue falling about 7% year over year. the company citing lower crude oil prices and lower volumes. and the company saying port year, we substantially reduce our debt, further positioning kinder morgan for creation shares. not doing a lot after hours. but so far this year the stock is up about 6%. >> thank you. as we know, this is one of the spaces has done much better since the election of donald trump. but it is because it is all about, it depends on the price of the commodities as well. >> it does. natural gas was doing okay for a while. i don't think anyone sees crude oil blasting off. it has been the environment where bits do you expect exploration production to ramp up with new regulations? >> precisely. which go

tomorrow you don't want to miss morgan stanley chairman and ceo james gorman.ing on a plane to head to donald trump's inauguration. so join us in washington, d.c. on friday. our guest lineup includes aei president arthur brooks. really big show. really big show. we're not going anywhere by the way here because we're going to be on in just a moment with jamie dimon and lloyd blankfein later. >> yeah, we're stuck. we're not like done. but we're done with this show. but then we'll be back. >> almost. >> we want to be back. >> we do. i do. that does it. make sure you join us a little later. right now it's time for "squawk on the street." ♪ >>> good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. dow looks to gain at the open after falling five out of six. lots to watch, goldman and citi's earnings, target warning, netflix tonight, trump on taxes, ftse and pound lower this morning, 10-year 2.37 as cpi biggest annual jump in six years. ro roadmap begins with can the rally rally?

david: give us your assessment of james gorman's turnaround plan, cost-cutting plan for the bank, compareds. what is he managed to do that they have not? brennan: well, all the banks really have come out with solid cost-cutting plans. the reason we might have seen ms -- it is hard to know for sure. we are judging apples and oranges here. jpmorgan had a rather large cost-cutting plan. multi-billions of dollars. it is a bigger entity. morgan stanley is a smaller entity. the actual leverage to the bottom line is what you are seeing with the greater amount of success for ms. not trying to take anything away at all. the efforts that these firms have executed here recently has put a lot of operating leverage into the model. when we see revenue improvement, the expectation next year not only with the rates we just walked through lesser regulatory lesson tuesdayhe -- lesstory approach enthusiastic regular tory approach, that should lead to better opportunities for the capital market. more of that will flow to the bottom line. julie: you alluded to the regulatory environment and i want to ask about