we hear from blackrock's larry fink. >> we'll have volatility. 20% risk.eve there are huge sums. ♪ >> hello. i'm erik schatzker. welcome to "encore." larry fink delivered a sobering message at davos. he warned to expect great volatility. wise words indeed. we went t

larry fink is the ceo. larry fink has been talking a lot about bond market liquidity.fically corporate bonds following dodd-frank. dodd-frank made it difficult for the big firms to act as intermediate eight years anaries.and help them trade their debt. if you own a bond fund, it could be a problem. they sell bond funds to average people. here's what we know, he's gone to the securities exchange commission and basically pushed a plan to have more electronic trading of bonds, particularly corporate bonds. now, how will this happen? i bounce it off the people in black rock. does he want to start an exchange? they say no. what he's basically doing is trying to establish a conversation, where there will be portals, electronic sort of trading platforms that do this trading of bonds. so if pimco has 100,000 bonds that it wants to get rid of, ibm debted, idebt, itcan sell directly to black rock without having to go through wall street. >> will it be transparent? >> they haven't built it yet. there's a few things out there -- >> what about the massive trading of bonds? >> somew

. >> dallas was larry fink talking to charlie rose about greece.an catch of the whole interview later. kabuki is a little bit like -- we are here and then we are not. >> right. let's carry on talking about what is going on with degrees and more group. schaeuble said grexit, the greek exit is not on the table. joining us now is he had of european strategy -- is the head of european strategy. it seems like a brief hiatus before we go to the real event. we have to deposit and a period when they have to figure out what they can do and what they can't do and then we'll get down to the red negotiations. >> the crucial point, the greek government is very new and probably have to get their head around what the real situation is. and if the agenda and have to assess of the reality and that is what is happening now. they put some form up her postal and they will go to the april deadline. -- some sort of proposal and they will go to the april deadline. and then another crutch point. >> they have to -- i'm not really sure. they put the proposal and were not su

for all of those reasons, i am pleased to have larry fink back at this table. interesting to talk to you at this moment. just give me a sense of where you see things today in terms of the global economy, in terms of markets, in terms of what factors are influencing them like the price of oil, like deflation. larry: as you have framed the world, you have framed a divergent world. the world is a very divergent place. we have crosscurrents. we have political issues that are impacting us that we never even dreamed of 10 years ago five years ago, two years ago, and we have an uncertain economy worldwide. we still have a middle-class having witnessed huge market movements upward and seeing wealth creation for some. we have seen stagnation in so many parts of the world. this is the part of the equalization of the world. it is hard to talk in one country about equalization, but i talk about this divergent world. we have had the biggest rise in middle-class income worldwide in man's history. a lot of good things are happening. charlie: china? larry: china, brazil. it's

the head of blackrock financial services larry fink talked about the crisis with charlie rose.says the country's troubles are far from over. >> greece in my mind as part of the international grid. if you want to remain in the grid, you will have to ultimately conform. if they don't conform they will become argentina. betty: the current bailout expires on saturday. a new merger will combine two of the biggest u.s. brokerages outside of new york. people financial agreed to by the eastern aging group of alabama. the stock and cash deal is worth $150 million. we will find out more about the merger in our next hour when we will be joined by ron. the homeland security department runs out of money in just four days. mitch mcconnell is looking for a way to end the standoff. the senate majority leader says he is removing controversial a momentum the agency funding bill. they have secure and congress not to pass just the temporary spending measure. >> to those in congress who may be contemplating funding are kicking the can -- punting or kicking the can down the road the consequences are

larry fink was talking about this. he expects there will be another crisis where marcus do seize up because of this volatility the inability to trade. the big fear is that this will affect corporate america companies around the world being able to borrow, consumer credit it will have her efforts of central banks throughout the world. >> is that psychological at this point? you talked about a fisher, is something psychological going on with this is happening? >> i think there's a question of perceived volatility versus actual volatility. central bankers have been suppressing a lot of volatility with their programs, so there might have been price swings if people were action able to trade based on what they were believing to be the actual value of certain debts. when central banks start to have less power based on the fact that other central banks are stimulating the economy and based on the fact that their efforts are nearing the in -- in the -- end is a question of single volatility. >> how does the feds minutes factor

. >> that was larry fink. fink says europe will be better this year.reece's funding will keep the country afloat. let's bring in estimates go -- hi anna. we are playing the waiting game. greece has headed in this list and the creditors will peruse the list to decide. are you confident that the next stage and stage after will be a smooth one? >> i think i am relatively confident that a compromise will be reached. but we are not out of the woods. even if the bailout extension is out this week there will be questions about shortage. i think this is the kind of situation that will require more urgency. there is still more to come. >> we spoke to the minister of the iso institute and he thinks greece has been ring fenced. it is not going to have enormous negative consequences for the rest of the european economy. do you share that view? >> i certainly do>>. that is the reason the markets have been relatively benign about the whole greece situation. the firewall has been built. i think one of the instrumental factors has been the in the ecb announcement. exp

we'll have details on the greek bailout extension period tonight on charlie rose on bloomberg, larry finkor the hour. chairman and ceo of black rock. the world's largest asset manager it oversees more than $4.6 million. they discussed greece and the private sector. >> in 2010, if greece fails in the private sector, most of the greek debt. today, 7% of the greek debt is held by the ecb, greek banks, and then you have the imf, who has a huge loan outstanding to greece. it is not a private sector problem. >> more of that interview tonight at seven: 10 -- 7:10 eastern time. ♪ >> here are the top stories we are following. in southern california, a passenger train hit a truck on the tracks. three cars of the southern california metrolink commuter train fell on its side. dozens of people were hurt. no word on the extent of their it -- their injuries. a golden parachute for the ceo if things do not work out with his new loss. they stand to get $109 if he is fired once allergan is acquired by activist. most of that would be in cash and stock for equity awards. activist has already said it plans to

tonight larry fink the ceo of blackrock talks about the global economy. the reason why i found this to be so remarkable the change in the oil market is all driven by technology, and we talk about technology in so many other areas, whether social media or other things, we spend too little time focusing on how technology is changing our every day economy like gasoline or how we are how it is -- how it is changing everything and i look at this as transformational. this is going to be, this new tech >> rose: funding for "charlie rose" has been provided by: >> rose: additional funding provided by: >> and by bloomberg, a provider of multimedia news and information services worldwide. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. we have political issues that are impacting us, we never dreamed of even two years ago and an uncertain economy worldwide. we still have the middle class. you know having witnessed huge market movements upward and seeing real wealth craigs for some. and to the world. now. >> hard in

olivia: we had larry fink, the head of blackrock, he says the pipeline has made the u.s.pendent. >> i don't use the term energy independence, i like energy security. i think the pipeline is a wonderful way to bring domestic crude. we need to leave -- left the import ban. olivia: we have to cut you off but we appreciate your time. we will be back. ♪ tom: good morning. yesterday, oil $47.80. let's go to the bloomberg terminal. i've got the plague. oil, $100. down at $20 a barrel. it is a churn. we're at $50, we are not at 50. going into the weekend it is fragile. brendan: we talk about the plunge and how it affected things all over the world. we talked to the congressman from north dakota. he said it is still a resource we did not have 20 years ago. it is always going to be there. tom: we will keep drilling and keep producing at the margin. some of the dynamics for saudi arabia to consider. top headlines. olivia: republicans on capitol hill looking for a way to avoid a partial shutdown in the department of homeland security tonight. john boehner explains the problem's prior

then you have somebody like larry fink who says enough is enough. zero interest rates. at you think they should do. >> so i'll leave it to joe to criticize larry summers. i will say two things. one is you look around the world. you have europe and japan in particular keeping rates very low to begin to stimulate their economies. europe in particular because they're not taking the structural actions to improve their economy. and there's also a lot of resistance from germany. all they've got is really interest rate policy and qe. japan's got the same thing for different kinds of reasons. and then you've got chinese slowing down russia in crisis. you've got a lot of reasons why the rest of the world is going to be in a relatively low interest rate environment. that's point one. that'll put some constraint on what the u.s. can do. and it will also put some constraint on what kind of growth we can get. the stronger dollar, weaker economy outside the united states collapsing right now. it suggests you need to increase. big point number one. big point number two, if you look ins

. >> but you have heard people like larry fink who was supportive of the fed for doing it that now saidfully long time. >> it's been a long time but with no negatives. i don't see any of the indications. i mean obviously there'll be individuals. but if you thought they were right from e the beginning, all the reasons for starting are reasons for continuing. one of the things i think they've shown is and i think this is accepted that people were afraid once they started they would never stop and it would snowball out of control. i think they've given an indication that they are on top of this. that this is not going to be on a dime but they can do it. i think you still have an economy that needs to be somewhat boosted. the fear of inflation is nowhere to be found rationally. i don't see why they wouldn't keep doing it. especially because they have time to stop when they have to. >> larry? >> well i agree with a lot of what barney frank is saying. i was never a fan of qe and still am not a fan of qe. however, that said when i look at what the market is signaling here inflation expectation

we heard this from larry fink.wer at home what does that mean? does that mean a huge selloff? a credit crisis? play that out. >> so it means a selloff. and then it means dysfunctional markets. then and everybody is going to look to central banks hoping they will step in again. look there's been a structural change, a functional change. the broker dealers have gotten smaller and will continue to get smaller. the end users have gotten bigger. so when the end users decide to reposition and they all have to go through the middle they find out that the middle isn't as robust and there isn't the risk willingness to take risk in that middle. what we have is a structural change in the capacity of the market to provide liquidity. and if it's tested then you get not only price corrections, but you get market stress. then everybody is going to look at central banks and we're going to wonder whether central banks will be -- >> it's going to be that big of a crisis that you need a central bank. >> when you talk about a correcti