but i'll say, "no, morgan stanley." [ticking] >> this is shaybah, a desert wilderness where temperatures can reach 135 degrees. beneath these sand dunes lie 18 billion barrels of oil, more than four times the proven reserves of alaska. and it's costing billions and billions to tap into it. with all the talk about kicking our addiction to foreign oil, the kingdom of saudi arabia is doing everything it can to keep the oil age going. let me be blunt: is it your hope to prevent a switch away from oil? somebody said the country is the oil business. i mean, you absolutely need to do this for your own survival. >> and what's wrong with that? [ticking] >> when the u.s. oil companies came here in the '40s and '50s, the americans moved into the area with their families and developed it to suit their tastes and their way of life. they created a replica of american suburbia. today you could be in the outskirts of houston or los angeles. it's almost like it's an enclave within saudi arabia. it's--different from the rest of the count

charlie gasparino here with the details. >> why are we putting morgan stanley's feet to the fire?is 56, probably won't leave anytime soon, but you never know. by the way, the stock's up 20% since he took over. this guy's had a very good run, transforming morgan stanley from a risk-taking firm into a brokerage firm. so there is right now, though, widespread speculation from senior executives, they're calling me, they're telling me that his succession plan is in place, and that succession plan has named greg fleming the heir apparent if james or if and when james goes. he runs the brokerage firm, he runs the part of the firm that people are saying is responsible for the success of morgan stanley right now, the transformation from risk taking to brokerage. so this is what we did, we called up the flak. i will say this, the pr people at morgan stanley will not deny that greg is the de facto number two, that he is on the succession plan, that he is going to take over. that's where we are right now. i will say this, we're going to have a full write-up of this story on foxbusiness.com. i

[closing bell ringing] liz: morgan stanley up another percent today morgan stanley is back to where itlehman brothers bankruptcy in 2008. the financials looking absolutely terrific. let's see how stocks finish the day. we're not quite there from s&p. we're there? we made it. >> look at that by one. by one point. >> it is indeed a record. same for the dow jones industrials on this friday. looks like real strength in russell 2000. that is the biggest percentage gainer. this is broad-based rally that began 8:30 a.m. eastern. when we got jobs number month of november surprised well to the upside. build of 321,000. there is still much to talk about. "after the bell" starts right now.

oil prices hitting five-year low after morgan stanley cut its forecast.ow backs away from 18,000. >> mcdonald's delivering weak number. sales down 2.2% around the world, down more than in in the united states. >> and merck buying cubist for $9.5 billion. what the ceo has to say about the deal. >> later, marriott president and ceo arne sorenson, live for an exclusive interview that company going after a younger, tech savvy traveler, opening its first ever u.s. ac hotel in new orleans. >> let's bring the focus back to the marketsen down 12 points on the dow. major averages mixed. the dow is down right now, but still within range of the 18,000 mark. the big picture rallies for seven consecutive weeks and gained 58 points on the dow friday in the wake of the blowout jobs data. president and portfolio manager, welcome to the program. it's a mystery why the market hasn't rallied more strongly on what was a really good employment report on friday. >> well, it was really strong, i think. whether it's sustainable or not, we can talk about that later but it was a g

we mentioned morgan stanley. the reason why i mentioned it, every time you see a negative headline, it all comes back to the fact that morgan stanley changed their business a few years ago for the better. i still, to pete's point, feels like that name, more than any other name, still has a lot of runway ahead of it. >> there is a big biotech conference on monday. we'll tell you the two stocks that could be big movers during that event coming up. >>> would you rather? >> we love this game. >> google versus yahoo!. what wall street thinks and what the traders think. that's next. location. location. (shouting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do, and you gotta do it fast. before the competition does. it's tough out here; you better be on the right cloud. today there's a new way to work. and it's made

and morgan stanley warning about the uncertainty in the policies that will drive down the pound. we are watching that and we'll be talking to morgan stanley. now, a look at futures. up .33%. futures on the stocks 50 are 0.5% higher. the debate is whether you believe they have put in a baseline with all of the negative stories that you and i have been covering in perpetuity. has oil put in a base? has consequences for the whole commodity complex. this is a story do sure. -- du jour. the ruble is crying. ruble day, you have the rising. wealth management this morning and the message was clear. they talked about no default as the best case scenario. that is what they discussed. no default for them. the ruble may go lower. moves withrabolic the dollar and ruble. no definition as to where it could go to. have a note out saying that it on the ruble. 62 on the dollar-ruble. russia is the story and is driving all of the other equity stories. equity markets break two days of declines. i think the story of apple is phenomenal. if this holds, it could change the view of technology. $40 milli

the guy who ran credit suisse and morgan stanley. yet you have this monumental change in the american banking system, where they are not, individuals are not getting loans from banks that they have gone for most of the last 100 years. did he acknowledge banks created this opportunity for this new businesses, and banks are maybe still in a position to get back into the business they are historically chartered to be in? >> absolutely. he says the traditional banking model has left this opportunity for companies like lending club to come in and provide an area for people to get credit who could not get them from traditional banks. there has been some talk that potentially traditional banks would acquire one of these guys. obviously not lending club now that it is an $8.3 billion company, but others where they could get into the alternative lending space. that is something to keep an eye out for in 2015. it's interesting to see how far this model will go in truly disrupting a banking model we have seen for centuries now. >> is funding ci

jpmorgan, goldman sachs, morgan stanley.these bankers are telling us at firms, if and when they do go public it looks like they will pull a page out of alibaba and not pick a lead underwriter. probably do the thing that alibaba did. everybody's lead. we want relationships with all of wall street. and maybe someone does the processing part of the underwriting but, no one gets paid extra. this thing will, this thing is going across wall street. because if you think about it, this is a company that startup, alibaba made a sort of interesting splash with its ipo. everybody now likes alibaba. >> right. look at what alibaba closed at. >> if you think about old days you used not to pick morgan stanley and pick goldman, sometimes morgan stanley analyst -- adam: i don't want to do business with that guy. >> morgan stanley analyst gave you sell rating because they didn't get the deal and goldman would give you a buy. this is kind of an interesting thing. you spread the wealth. everybody is positive. everybody comes -- adam: i pulled u

look at morgan stanley. 52 week highs today. and old tech. everybody wants to dismiss it and say they can't go further. western digital, sea gate, old names, 52 week highs. ibm on a big bounce. hewlett packard. a lot of things i think have great potential. to your point, do you take some off? absolutely. but i still want expose your to the upside. >> a couple of days steve brasso we're talking levels and key ones we could break below now we're talking about levels we may reach. >> look at the s&p and it definitely sets up technically to close the year out right around these levels. that's based on for the last year the selloffs and the recovery bounces we've seen in the s&p when we broke the 50 and 100 day and eventually the 200 day. so if you look at it basically on a technical basis, we're right here moving sideway, maybe a little higher going to year end, driven mostly by crude. so if crude can stabilize here, middle 50s, that is where you see guys taking fliers out. also theman the other day with the m and a activity. talusman. they are l

and morgan stanley may reach a settlement early in the new year. still, shares of morgan stanly up to $39 a share. and shares of sieveo cratered today cutting stock price in half. investors got first chance to respond yesterday of a seat profit warning and the fact the oil services would suspend its dividend. demand for services has dried up as oil prices dropped. among the firm's biggest investors are hedge fund jana partners and capital. plunge lg 52% to $3.92. >>> toyota may not reach its 2014 goal of selling more than 1 million vehicles in china. that's according to a report citing executives from the auto maker because china's economy is slowing more than expected resulting at a price war in the local car market. stock price at $125.91. >>> amazon ranked the most popular company in the america according to a survey conducted by the university of michigan which collected data from tens of thousands of interviews from consumers as well as other industry information. but amazon stock was not popular with investors today. it lost $1.74 to $310 and

morgan stanley upgrading to overweight. they bump the target from 45 to 35.over the stock. morgan stanley is more bullish than most on lasalle hotel up 1.5% to $40.93. >>> from street talk to "talking numbers." our daily look at a stock from a fundamental and technical perspective. today. >> the goog. >> a little company you might have heard of. i'm going to start with you. google. listen, very positive on google this weekend. you are not convinced. how come? >> thanks for having me. we did reduce our price target today reinforcing our neutral rating. when we do evaluate google one thing we keep in mind is at the end of the day this is still google. the things they are doing on the health care front is quite fascinating. the core of our call is about the core assets, the trend in the assets, the trend in industry over the next 12 months and which platforms are positioned to benefit from the trends and pick up relative share. we believe it to be competing platforms. >> can you dig in on the health care side? we don't talk about health care and google much. >>

that's our strategy here at morgan stanley. >> gee, that's a good strategy. >> thanks for asking, buddy. i think we call that an ee goes pitch on the softball field. >> you should continue that. >> thank you very much. thank you very much. >> good to see you. >> take care. >> adam parker. what do you agree with this? >> i disagree with the market. we heard from steve liesman how these rates ring going to move until 2015. why are the small caps going outperform? i think you stick with the big caps. when i look at it right now, scott, what's looking really good today again, microsoft, intel. look at the farmer names. when you look at those that have growth and dividends when you aren't getting it other places, that's the place to beat right now. why does it outperform the russell for the entire year? the russell has lagged. why has it lagged? it hasn't made it up. >> in terms of tech, you say trim the winners. >> right. i trim them and look for opportunities, you're exactly right. and i think it's tougher from adam's perspective. but why do we need to trim microsoft right now? why is it w

morgan stanley predicting tesla will sell fewer cars because of gas prices. fed will ignore the news we got moments ago, consumer prices are the lowest in six years. the fed cares deeply about inflation. and raises interest rates to fight inflation but there is no inflation. we still think the fed's going to raise rates or hint at it. >>> the only basketball fan in the bay area, pleased the grizzlies beat the warriors, ending the win streak. robert perra owns the grizzlies. he's happy. warriors lost er 16 wins in a row, guys. a good run, though. >> it was. thanks, scott. >> up and down for bay area teams. but warriors a good story. 6:57. >> final check of the day's top stories before we go. senior white house officials will hold a news conference to talk about the american who was just released from cuban captivity. alan gross a contractor jailed in cuba on espionage charges five years ago. in exchange for his return, three cubans, james in the u.s., will be released. >>> sony canceled the new york premiere of the movie "the inteview" amidst knew threats that

i believe if memory serves me morgan stanley and goldman sachs working on that ipo.his is part of danny myers union square hospitality group. consumers around the world have been introduced to the burgerings, crinkle fries. we'll be looking through the s1 to bring you the news. >> first five or six pages of the s1 are photos of their various locations and even photos of just a couple burgers. if you're not in new york you probably can't appreciate the cult. >> that has investors salivating. >> danny myers, one of the most well-known executive chefs in the country and the chain that has spawned cop py cats. >> i'm sure they'll put them in supermarkets and bottled beverages and shakes as well. >> shake shack, five guys, these are among the various threats to mcdonald's business model. people want to go to the boutique burger chains than the bigger box fast food restaurants. >> shake shack is a modern day roadside burger stand serving a classic american menu. first few lines of the s1. finally gmail blocked in china and many are pointing fingers at the chinese governmen

i like morgan stanley. >> the banks, all right. >> ameritrade. this is a breakout 15 years in the making. look at the long term chart. >>> "power lunch" starts now. >>> "halftime" is over. "power lunch" and the second half of the trading day start right now. >>> welcome to "power lunch." three things you need to watch this hour. flu season, experts say get ready for a really bad one. also, watch out for one big storm about to hit a big part of the united states. it is going to cause travel problems and more. watch out for christmas thieves. a terrible new trend popping up. the danger starts at your door step. first let's check in with sue at the new york stock exchange. >> stocks are struggling this hour but one drug stock is soaring right now. it is cubist pharmaceuticals. merck buying the company. meg terrell was ahead of the story on friday telling us a deal was in the works. she is in san francisco at one of the biggest cancer meetings of the year and scored a live interview with merck's ceo. >> thank you so much. let's bring in ken frazier,

of morgan stanley, sits on lending club's board.is stake is worth about $36 million after the pricing. mary meeker, the former morgan stanley analyst, also a backer of the company. and larry summers, former u.s. treasury secretary, is a director of the company. i've 've seen that -- always wondered about the regulations that prevented this in the past. do you think they are designed to protect consumers, or do you think they're designed to protect people who have more money and would rather be investing? >> they're designed to protect consumers, but markets are morphing all the time. technology changes. tougher government to keep ahead of the stick. most of the time they're reactive and trying to keep one the old-school ways. so yeah, it's a morphing market, and there are morphing technologies used. >> do you worry about consumers lending $25, $1,000 to businesses, to startups? >> yeah, i mean, at times. but overall, it's fine. look, it's a free enterprise system, and there's got to be certain safeguards, absolutely. >> we can't fig

and i also want to talk to you about gas prom and pbr. >> so morgan stanley -- how about money. how about the fact that, you know, about what's going on in the ruble. maybe it's regulatory also, but don't you think -- who puts out a headline -- >> one of the first questions you asked when you sat down, where is the ruble. >> okay. you know, i mean could be regulatory, yes. all you think it is? >> no. i think it's the ruble. >> when you look at the russia and you look at companies like gas prom, petrobras, what do you think? we've talked about petrobras on the show a number of times. >> pret tro brass at 6 or $7, i'm not sure where it is, gas program, and to me reminds me of citibank when it was a dollar and bank of america was $5. very quickly these two names are no longer energy bets. they're sovereign nation bets. >> yeah. >> if you think that russia will make it you want to buy gazprom. if you think that petrobras -- you think the brazilian government is going to survive every scandal known to man, okay, you buy petrobras because they're no longer energy companies. if petrobr

>> thank you for joining us today, go see the morgan stanley dartboard. >> alexander of morgan stanley back. ♪ >> we welcome you on jobs day, less than an hour away from that port -- important report. monday on the program -- i will butere tomorrow working, monday on television and radio from morgan stanley we will speak to mr. parker about his enthusiasm on equities into 2015. here is scarlet with our top headline. >> it is jobs day in the u.s. and at 8:30 a.m. according to the median estimate, employers added 230,000 jobs last month. november would mark the 10th straight month of gains of more than 200,000 jobs that would year2000 14 the strongest for payroll growth since 1999. associates for bernie madoff made millions for his 17.5 million ponzi scheme. now five of his colleagues we sentenced next week. the three men and two women have been freed on jail since a federal jury convicted them of security fraud and other charges in may. the government says their crimes warrant sentences ranging from eight to 20 years. the leader of the free world getting his groove on and try to spread

you compare it to the rally which is 18%, 13% from goldman, 18% from morgan stanley. it is not bad.tions where we now see securities coming in fourth globally just behind goldman, morgan stanley and ubs. now ahead of credit swift. i think that difference between ubs and citic is 9 billion u.s. dollars. i think it is a little narrow right now. that is the tables as we speak. 55 more or less. i mentioned the difference in revenue. as far aschs makes, overall, $35 billion. i think that is the estimate for this year. citic, $4 billion. the latest numbers back for november was reported income 11 times. year-to-year growth is really substantial and that has to do with these new broker -- renewed brokerage accounts. it is a little bit worrying. the value of debt. it has been taken off due to equities. ofy are starting to warn risk involved investment. >> who knew? thank you, david. >> hong kong is wrapping up its best year for initial public offerings since 2010 but there is one cloud on the horizon. overseas companies have almost dried up. we are taking a look at this. how many foreign li

morgan stanley has a great franchise. they have retail.e can sell the stocks to a lot of small investors -- generally when you have retail, that's the dumb money. they'll buy it at the top of the ipo price. that's their pitch. goldman is nailing this down. they have a pretty good inside track on this thing. ashley: some people talk about early 2016. charlie: yeah, dan who is a good tech writer for fortune doesn't think it's next year. i'm telling you what the street will prod them to go. the street wants them in 2015. i can see them announcing towards the end of next year and issuing 2016 as well. this thing -- ashley: the valuation of this thing, 41 billion? charlie: they're going to face a lot of opposition from taxi cab unions. regulation involved. everyone who uses it, loves it. it's a good service. ashley: despite the protests -- i use it too. charlie: it's expensive, but incredibly reliable. ashley: charlie, thank you. and your three major sources. thank you. charlie: maybe just two. ashley: closing bell in just half an hour. new hom

morgan stanley raised its rating to overweight from equal weight.10 million prize members during the holiday shopping season. nearly 60% used a holiday device for their shopping. oil over 100 in june. now you know what cheap oil really means. >> month of disruptions. almost all of google services have been disrupted since june of this year. e-mails were still working. gmail is the world's biggest e-mail service. stocks moving sideways today. i have been told to have you have promised a big winner for us. >> that is right. shares of 8%. shares were a tie. karl icahn has taken a 6.8% stake in the crane maker. the crane sought those callers. on the other side, this company makes those industrial items. you also see board representation. making a big investment. that has shares watching up about 8% at the moment. >> thank you. karl icahn presto. meantime, back to sony and microsoft's online videogame service. leaving millions of gamers unable to play their new video games right after christmas. jeremy kaplan is here. they must be furious. >> i just want

i want to bring in bob eatroff at morgan stanley.d consolidation in the airline industry, i thought we were done with consolidating. how much more smaller can the airline industry get? >> lower oil prices is positive for consolidation, period. there are plint of other airlines out there besides the majors, so you can't rule on the the possibility of consolidation. there's no doubt that lower oil prices is positive for m&a. it's not just the airlines. it's any industry that consumers energy, and it's a boost to the consumer. >> the airlines are doing better because they have pricing power. >> well, yeah, ticket prices have gone up about 25% in just the last several years. >> let me rip up the script this. fws back to a surveillance moment of a number of months ago when our josh mentioned from bloomberg business week an essay by tim cook, the "financial times" this morning naming mr. cook their person of the year. it's really a lovely read. a full-page read in the "f.t." on tim cook, and they mentioned the "bloomberg business week" ear

jpmorgan, morgan stanley up 18%. there's been a pretty good run for these financial companies despite capital share hold and talking about legal disputes, as well. >> indeed. >>> coming up, we hear from the man who took greece into the euro. stay tuned to find out his warnings to greek voters if they back the radical left in the story. that's the big story, coming up. >>> stocks bounce in europe after a late comeback on wall street. oil prices fall again as opec scrambles to schedule an emergency meeting in june. >> shanghai composite up more than 3% as chinese cpi falls to a five-month low. >> russia's prime minister warnings the government may have to -- if economic conditions weaken. >>> the greek yield survey bursts while stocks fall again after closing out the worst losses since the 1980s. the man who led the country into the euro warns cnbc a radical victory. >> this is not the scenario that we realize without controversy, without the social and economic disaster. >> we're just getting data out of the uk. brita

getting love for morgan stanley today. >> tell me about the telecommunications stock. >> you are like an international celebrity. we have different names to trade in to provide telecomes and lovely sonic network. what are we looking at? >> a way to play music around your house. this is another week, another positive comment on sonus networks. beginning with a buy. a $5 target. my math i hope is correct. about 20% upside. it started with outperform at wells fargo. >> close to 52-week high. >> it actually looks like music visualized. igy azalea. is that somebody? >> that is somebody. i'm surprised you know who she is. >> let's talk about energy. we have been taking a look at slide and oil pricing. mark west. >> markwest not the pinot noir although it is delicious. it was upgraded to overweight at stevens. target goes to 81. it is a lot of upside seen on markwest energy. 5.3% dividend like all energy names it has been absolutely walloped. stevens trying to defend the name. >> not just stevens. goldman sachs calling it a buy. barclays raised price target. >> maybe 25% drop in a matter of

second lead after morgan stanley. this is interesting deal. this means that uber is clearly, at least according to bankers going public at some point soon. goldman clearly, doesn't work for free because it likes to work for fry. it is working what we understand, nearly for free on this deal. it is preparing to be the lead underwriter on this upcoming ipo. a lot of people think over next year. we should point out neither goldman will confirm or deny this report. uber did not return a phone call. melissa: is this bullish to you. >> absolutely. great news story. uber, first of all, headline news story. will be a wonderful ipo. expect them to raise billions and billions of dollars, great especially when they're expanding. looking to go into uber pool and carpool service. >> can't wait to see how that works. >> goldman is brilliant. charlie is right. don't do anything for free. clearly is a chess match. >> if i was morgan stanley i would step up to the plate, you want a second round, we'll do it for free as well. >> every firm is pitching. this is

adam parker would join us in the next hour from morgan stanley. brokey, crude down to new lows this morning. >> good morning everyone. i'm tom keene with scarlet clue -- scarlet fu and brendan greeley. fleming me go to this fire in los angeles. from a distance it is stunning, the scope and scale. no one -- we believe -- is under threat. >> apparently it was empty and was planning to be a tall structure but there was no one living or working there according to a spokesman. >> there it is. we have a morning must-read right now in europe. >> fisher is to be the german foreign minister and a well-known opponent of the iraq war seven or eight years ago and he writes in project syndicate when reunification came, germany regain full sovereignty and has been trying to figure out how to use it ever since. one of the great stories of the last five years is germany learning how to read, this is something you watch very carefully in europe and the ecb is everyday looking over its shoulder. >> it's funny you bring up leadership because for the last few years w

ma morgan stanley bethink they are going to have record margins in 2015. the other half they have restructure asked down sized income and returns is go still higher. >> mike mayo. thank you. steph you bought more morgan stanley. >> yeah we did. i think the valuation is so attractive. i like what they are doing in terms of the global wealth management and really shifting interest there. i also like returns are so low they can still move higher. >> coming up the former ceo of the cc j.c. penney. and what is is a central banker to do? steve leisman is on that case. and we are the trade as the ten year yield gets close to breaking 2%. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. get ready foat the volkswagen engineered holidsign-the

the third thing i'm going to say is that james gorman, the ceo of morgan stanley -- who isn't very healthyis very healthy, no reason for him to do anything but quell the speculation on who might be his successor when he leaves. and i think he's going to throw his hat to greg fleming this year. i think he's going to make it very clear that greg fleming, the guy who runs his brokerage department which is what's powering the stock of morgan stanley which has done very well in the last year, i think greg fleming gets the nod finally. he is number two. it's not just sort of internal everybody knows, wink and a nod internally, that gorman essentially says it and probably announces that he will be president. i think that will happen in 2015. ipos to watch in 2015, first data, frank business ig nano, former jpmorgan guy. you know, i think he spins that out of kkr. that's going to be a big ipo not because of size, a lot of moving parts. and uber, i think, good shot it comes public x. i'm going to go out on a limb with this. i didn't say this, tell your producers this, so if they can put a picture o

[closing bell ringing] liz: morgan stanley up another percent today morgan stanley is back to where it was before the lehman brothers bankruptcy in 2008. the financials looking absolutely terrific. let's see how stocks finish the day. we're not quite there from s&p. we're there? we made it. >> look at that by one. by one point. >> it is indeed a record. same for the dow jones industrials on this friday. looks like real strength in russell 2000. that is the biggest percentage gainer. this is broad-based rally that began 8:30 a.m. eastern. when we got jobs number month of november surprised well to the upside. build of 321,000. there is still much to talk about. "after the bell" starts right now. david: breaking down action today, and for the whole week, eric marshall from hodges fund. he will tell us why he thinks potential reward for the stocks outweigh the risk. now he says it is time to get a little defensive in this market. mark sebastian in pits of cme. mark, start with the jobs numbers. hard to find anything bad. some people are saying we still have the labor participation rate pr

morgan stanley says the s&p will hit 2,275. bmo and jp morgan calling for 2,250 in 2015. a full list up and running. go to the market insider page. >> we will do that. let's bring in hugh johnson. good to see you both. happy new year, mr. johnson. if we had this conversation last year we had such a good year in 2013 i know a lot of people were saying we couldn't repeat that again. we had a pretty good year in 2014. what about '15? can we continue the momentum? >> looking back to the beginning of this year i said we couldn't continue 2013 and we didn't. we had a real good year. i forecast up and didn't forecast up as much. i kind of start this year the same way. i say i ask myself what is going to drive the market higher? how are we going to get 10% to 15% this year. it will be earnings. i see the growth rate of earnings coming down maybe to 3% to 5% on the s&p 500 earnings. and the second thing is we have rising interest rates so you are not going to get an expansion of price earnings. i am kind of back where i started the year. i say we will have an okay year, a positive

morgan stanley cutting the oil forecast late friday. is there any sign of a bomb coming in? i know you are not going to call bottom. >> i continue to stay along the airlines. this is the right trade. and conco phillips, just last minute we had unusual activity. it brought me into the name and it brought me into where i am. it looks broken down into the low end of the range. i like what they talked about. they talked about what they would be doing from a drilling perspective and an idea of what to expect. i think this stock hasn't bottomed, but i like it. >> they were going to cut capital 20%. are they expecting the move to be sustained? >> that's big news. that's a lot of ego attached. you look at the price and there is a lot of value that is not just conco. they have a difcent that is very important. we probably think oil can go lower. if you look at where we are, production despite what saudi arabia has done, that's what a lot of them were saying on the day after. i'm not sure, but i'm sure it's going lower. a lot of them, they are hedged through the first quarter. at leas

head of morgan stanley's emerging market investments. just the latest game in town. the newest bubble forming in the financial sector. the culprit, he says, the huge amounts of liquidity that the chinese government has supplied over the years injecting lots of money into the economy through real estate boom and the shadow banking system. given the crackdown on these two sectors now, the liquidity is now flowing into the stock markets. no one is talking about a crash. but what would a sustained slow down in china mean for the global economy? while people worry about europe's slump and its implications, europe is not that significant. by contrast, china, which in 2007 replaced the united states as the largest engine of global growth, is far more important, says sharma. jpmorgan chase attempted to quantify china's global footprint and found a 1 point reduction in china's growth was associated with a 10 point decline in oil prices and, on average, an almost half point, increase in global gdp growth. while it's clear that the chinese economy

they are saying the oil trading business for morgan stanley it is off. regulators nixed it. what do we do from here? >> this i am told is definitely because of the political situation that has erupted because of ukraine. it is the state-owned oil company supposed to buy this oil trading business from morgan stanley. this had been in the works before a lot of sanctions went into effect. looked like the deal was going to go through and then this morning for some reason they couldn't get clearance and on the background we are being told this is somehow related. >> you cannot overestimate or overstate the importance of oil to russia. at these levels russian gdp could fall by 40%. there is a growing chance -- it's high. there is a growing chance that russia will have difficulty meeting debt obligations. >> so they have a big pile of cash reserves and they have to make hard choices. >> which is not only declining on a daily basis but the value of that cash -- the last couple of days they try to defend the ruble but it is way down. >> if you are talking about the sovereign debt the

. >> while we're on the line i just got morgan stanley's note as jim's talking. and they have a base case of manny toe whack of 20s an bull case of $30. they think it's fully in the stock what's happening except they still have -- >> the stock as it is not analyzing it if it breaks up. >> breakup value 30? >> some of the parts. >> 30. >> carl icahn must see something different. >> a bull case on the parts is 30 and they just put that note out. >> all right. >> options -- >> my problem with that is -- >> go ahead, jim. >> the company, who can run an ice machine maker that sells cranes in asia. >> they are based in northern wisconsin. natural ice sort of synergy there. >> there is a synergy there. the cranes build giant ig glys made from the ice machines. >> you're right. that may cause the discount. that is one -- the total addressable market is -- >> discount double check. aaron rodgers icing up his ankle. thank you, buddy. >> do you do this on "street signs" too? >> do what? >> you know, jump with these comments all the time? >> scott wapner is on a beach gettin

morgan stanley's adam parker is here with the surprising sectors he says to buy in 2015. >> sounds goods. >>> let's get over to the cme and get the santelli exchange with rick. >> good morning, carl. i'll tell you this thursday is going to be important as many ecb meetings are. let's call it for what it is. bigger placebo, please. great set of sentences in an article in the wall street today. written by simon nixon called "2340 magic bullet, junker plan still might ease bottlenecks." let's put it up on the screen. this is in regard to how bachkers see the issues. bankers complain the greatest bottlenecks to investment are bureaucratic, political and legal. byzantine, procurement processes, regulatory uncertainty and corruption. to vary iing degrees you could pretty much use those same complaints around the globe. whether japan, the united states, or in this case, europe. what's really fascinating though is, is that the call for quantitative easing just gets louder and louder for every meeting but it is in many ways a placebo because it's going to address any issues i just read. we could

as an analyst on our team as spurs for the last 2 years 9 years total and other years anothers morgan stanley this was a vigorous and competitive process that included 3 interviews as well as written materials ms. ma just distinguished home sharer for several reasons she's a it starter comes with her a game everyday and the second she's a great research third is she conducted extent e excellent due diligence on strategy whether things eunice is on it the next do i day she's on top of things and she's a team player that was not an automatic promotion by any medians it was competitive is he distinguished herself for those 4 reasons and jason l i'll invite you to make comments. >> i was delighted to interview eunice and she's joined the sf team in the last year in 2013 and progressively herself to say a be a variable asset i'll reiterate this was a rigorous process kind of an interest if the position from cross the united states so again, i'm very hemisphere to welcome eunice in a new position on the team and she's got a lot of work cut out for her going forward. >> eunice any comments. >> thank

possibly from a rating change by morgan stanley or investors getting ready to cash out. the s&p 500 is down 10. >>> oil prices are at their lowest level in five years and that's translating to the lowest prices at the pump. according to aaa, the nationwide price for a gallon of gas is $2.77. that's nearly 50 cents lower than this time last year. of course, here in the bay area where it was a little higher than the rest of the country. the average price is $3.21. ? oakland, $3.07 and san jose, $3.01. >>> just in time for the holidays, there's help for shoppers trying to determine which toys are the most dangerous. the public interest research group today released its annual report called "trouble in toy land." it warns parents of toys with small parts that are thoek choeking hazards, balloons, magnets and toys that contain lead. >> think about the specific child you're purchasing a gift for. if they're a younger child who puts things in their mouth, be very careful about small parts as well as potential chemicals. >> according to the report, riding toys, including wagons

morgan, goldman sachs, city group, morgan stanley, and bank of new york mellon. rages from 1 to 4.5%. lessens the chance of a bailout. j.p. morgan and city falling. goldman sachs rose fractionally. >>> bank of america and city said to expect weaker trading revenue in the fourth quarter. chief executives made the disclosures at a financial conference in new york city and kayla townsheet was there. >> reporter: golden sachs is under way in new york with bank taking the opportunity to warn investors about weakness coming up in the fourth quarter. announce $3.5 billion and alleged currency and interest rate manipulation. also, there's an investigation ongoing into antimoney laundering practices. $800 million of that charge goes towards existing repositioning at the bank but in all, corbett is telling investors it's unpredictable especially with legal issues because of the leverage for pricing and for timing lay with the u.s. government. meanwhile, bank of america's ceo, brian moynihan, saying trading revenues for the fourth quarter is down compared to the third quarte

we have moreland -- morgan stanley. ubs is now third.an andude these compare to us because it is more of a bank than a brokerage. it gets more of its revenue from commercial banking. c also has a commercial banking arm which is worth about $47 billion. you put that together, that is $100 billion. >> have a look at revenues. >> still way behind. goldman sachs and morgan stanley are more global companies. ubs between $8 billion. citic is about $4 billion. still some way to go. what is fueled of this search in valuations -- surge valuations are volumes which has been four times we've seen in china. imagine the markets being interested. a lot of these people are using that to buy equities. it is close to one trillion. not necessarily good thing but it is pushing up the value not only of citic. all these other financial institutions. >> thank you very much. let's get you up to speed with some of those corporate headlines so far this morning. obama has described the sony hack as vandalism. washington has blamed north korea for the attack and t

i like morgan stanley. >> the banks, all right. >> ameritrade. years in the making. look at the long term chart. >>> "power lunch" starts now. >>> "halftime" is over. "power lunch" and the second half of the trading day start right now. >>> welcome to "power lunch." three things you need to watch this hour. flu season, experts say get ready for a really bad one. also, watch out for one big storm about to hit a big part of the united states. it is going to cause travel problems and more. watch out for christmas thieves. a terrible new trend popping up. the danger starts at your door step. first let's check in with sue at the new york stock exchange. >> stocks are struggling this hour

. >>> morgan stanley moved lower today after buckingham downgraded the stock neutral from buy. the stock now trades at a premium to peer group. that's enough today. shares of morgan fell 3%. for the year, it's down almost 16%. >>> shares of new skin fell today after saying the 2016 profit below market expectations. this direct seller of skin care nutritional projects cites regulatory concerns in china. shares tumble 6.5%, closing at $40.16. >>> two companies that help businesses analyze data have strong debuts. new relic and horton. lic shot up on their first day of training, while yahoo spinoff horton surged 65% to $26.38. they were two of seven ipos to hit the street today. >>> there may be big changes in store at conway after the teamsters want to vote to unionize dock workers at the miami area facility. conway fell 2/3 of a percent to end at 22 dollars and change. >>> tonight, had energy picks he said investors should buy now. let's meet him. he's a guy whose name i can actually pronounce for a change. hank smith. chief investment officer. good to have you with us. >> good t