as morgan stanley moves away, who wins? not just morgan stanley, but the u.s. has moved away.eutsche bank and others have reduced that area of business. what is left? just as we start to see interest rates rise and maybe as the bond market becomes a little bit more favorable. anna: caroline with the latest on the banking sector. nejra: the chief -- guy: the chief economist at moody's still with us, mark, macro prudential, is this the right time to start using it? is carney looking in the right direction? guest: we are just about their. the credits big it feels -- credit spigot feels just about wide-open. the booming in london and that market is in part fueled by increased leverage. i think it is about time to start thinking about it. you start with the other ways of doing it. guest: we are still a good ways away from rising rates here. my thinking was that once the fed starts to raise rates, the boe would be a few months behind but it now feels like it will be about a year behind. we will get a little bit more fiscal contraction here. inconsequential, so it means we have to be

. >> morgan stanley feeling more pain on wall street. reportedly preparing to slash a quarter of mixed income jobs amid a recent slump in bond activity. >> third time lucky. november auto sales set to top 18 million vehicles nor three months in a row for the first time on record lead by trucks and suvs. >> the top two mattress dealers create a king sized firm across 48 states. find out how $250,000 could buy you this ghost town in south dakota. and to infinity and beyond. we're live from a launch pad to find out how one satellite hopes to make a scientific break through. >>> on this tuesday we are priced above fair value. we're looking for a higher open. s&p 500 look at gains of 8 points. dow jones industrials. we're advancing maybe 76 points in the nasdaq. pricing in gains of 18 points and what a month it was. let's check in on november for the dow first off and we'll take it. it was a mere gain of a third of 1% but that makes two in a row. same thing for the s&p 500 as well in the month of november as we head into december where it loo

>> we've got a job cuts coming at morgan stanley.his according to a dow jones report citing sources saying morgan stanley plans to trim its stock trading division as part of their annuity culling and performance review. they are looking to reduce equity staff by 5%. and build up that staff back up through the rest of 2016. this is nothing according to the report to do with the overall cost-cutting moves that led to a big reduction in its fixed income currency commodities trading and sales staff. morgan stanley going through what appears to be an annual review of performers and seeing which ones have not made the cut, reducing those staff and looking to build up that group again throughout the course of next year. morgan stanley not the only bank and not the only company out there that does this kind of performance review process. we want to bring your attention to the fact morgan stanley will cut jobs as part of this review. >>> a massive options expiration date tomorrow has traders on edge. a lot of people are saying the timing is c

cuts could be coming from morgan stanley because of a drop in revenue.ays up to a quarter of the business' workforce could be eliminated. more jobs are expected to be eliminated in london than right here in new york. the debt market has been declining mainly because of lower interest rates. 42% drop in fixed income revenue. more than than some of the rivals. >> cheryl: before you head out the door let's take a look at the tuesday forecast with fox meteorologist maria molina. good morning, maria. >> maria: we are tracking several areas of unsettled weather, northern plains where we have an ongoing winter storm bringing heavy snow in south dakota, north dakota. a more widespread region. you're looking at winter weather advisories. as we head farther east, we have heavy rain in tennessee, kentucky and farther south in mississippi. the concern is we are going to see potential flash flooding, as much as 5-inches of rain will be possible here as parts of alabama, we will keep a close watch on that. we also have a concern for flooding and across parts of northe

morgan stanley will cut 1200 jobs. that is the news, morgan stanley. what great timing. they must have been waiting for me to appear. of the cutsop announced yesterday in the london trading groups. betty: and barclays is looking at cutting their investment bank. bill: european investment banks are retreating from investment banking. now, morgan stanley -- i think that this is a rarely clear, almost capitulation, of cutting back on trading. trading is not what it once was on wall street. higher capital requirements, inability to make proprietary bets. i think we are in a new normal as the ceo of deutsche bank was saying. betty: you had been saying this for a while? bill: people have finally caught up to me. it is the only way that the math works. you cannot pay people at high levels when there is high capital and a low return on equity. $.40 to $.50ween of every dollar on revenue -- jobs. thousands of every time we see this, is this the bottom? and it is clearly not the bottom. ors this feel as bad as 2007 2008 for the banking world? bill: not even remotely. you have a ca

looks like the analysts at morgan stanley have a good reason to change their november. they decided they were about to miss their window and pulled the trigger on december 1st. how about this two-notch downgrade of cummins from buy to sell from bank of america merrill? here's the different story. remember cummins is a big international oriented industrial with a stock that's being killed for the last year and a half. 18 months! yet this analyst at bank of america and merrill had a buy rating on the stock since this past january when it was trading at 142. let me see, where'd this one go out? oh, yeah, 85. that's bad. and then nearly 11 months later he downgrades to underperform. the stock but i have to wonder what the heck took them so long? maybe it's a case of, what, better late than never? i can't disagree with the substance of this downgrade as this is a very difficult time to own a fantastic american manufacturer like cummins. sooner than anticipated -- >> continues to make it difficult for them to compete with foreign engine makers and a country with devalued curr

host: we look at morgan stanley and they call it "the year of the yen." we will bring you a preview after this break and we will hear from the head of the asian fx strategy who says that this is a symbolic milestone. stay with us. you are back and the imf has finally of proof the chinese yuan -- of finally of proved -- approved -- have finally approved the chinese yuan. >> it really comes down to a belief that this makes you a reserve currency and it is important to realize these are not one and the same or sufficient or necessary for top look at the canadian dollar and they each made up the reserves. likewise, we know the central bank is accumulating and malaysia was announcing they were joining and the renminbi was not in. host: it is symbolic. >> absolutely. it is a statement of international legitimacy against a backdrop where voting moves to increase and is with congress. transpacifice partnership agreement that china is not a part of and this is a 18 for china to international legitimacy. is truly usable pretend.annot >> it is a little looser and yo

i'm mary thompson with breaking news with b morgan stanley. a source he at the bank confirming to cnbc it is cutting 1,200 jobs in its fixed incomes commodities and currencies unit of those 1,200 jobs, 470 of them are front office jobs. the rest are support staff. in a memo released to employees, the company is saying that the cuts will result in a businesses that are critically and countriedably sized for the market. you might recall that fixed income had very, very bad quarter in the third quarter. at the head of that business column has said that the fourth quarter is trending very similar to the third quarter. the can be will be taking a severance charge. morgan stanley confirming to cnbc it is cutting 1,200 jobs in its fixed income commodities and

morgan stanley also cut hundreds of human resources and i-t jobs. the company is among several wall street firms struggling with dwindling client activity and trading revenue. morgan stanley's c-e-o recently admitted that the company's short- term outlook is -quote- 'not great". the cost of child care is on the rise and it's taking a toll on many families. a new report says families nationwide are struggling to pay for quality care for their children. it could cost as much as college tuition. "..eleven million children are in childcare under the age of 5 and for vast majority of children, their parents work. for those working parents the cost and expense of child care takes a significant part of their family's budget. in fact in much of the country the cost of child care exceeds the cost of college tuition of a four-year public college or university so this is a terrific expense, a huge expense for working families." for more information on childcare issues, log on to child- care-aware-dot-org. girl scouts have sold two and a half million boxes of c

shares of morgan stanley rose on the banck of the news. get more with nejra cehic, who says this decision hasn't been publicly announced. what do we know about the brett of this story? nejra: we heard this story from people who say that these cuts will happen across all regions and are set to take place in the next two weeks. they would amount to a reduction as much as 25% of fixed income trading. the reason why we are going to see these cuts, according to these people, is simply years of revenue decline and insufficient return. last month, morgan stanley reported a 42% plunge in bond trading revenue. the ceo called it the worst quarter for fixed income, currencies, and commodities since he took over in 2010. is alone iney having a bit of trouble, because if you look at the top 10 biggest global investment banks, ficc is on pace to drop to $65 billion this year. that would be the lowest since the financial crisis, and also less than half of what those companies produced in 2009. in europe we have our racing the likes of ubs, deutsche bank,

also from jpmorgan about the markets that would affect morgan stanley as well.ot a brokerage firm that's going to be down as well. >> yeah. and down more in the broader market. >> i think the financials have really come under a lot of pressure at a time when they've gone sideways and the pgs kps that people were making this a one cell trade. it was all about rising interest rates. what i think is interesting about morgan stanley, there's a lot of information about cutting positions and cutting thick positions last week. and it was actually applauded by the market. ultimately i think what karen is saying that, look, morgan stanley has out-performed on some level because this turned itself into a wealth management business. if that's what you believe this is all about, you have to also believe that the wealth management business is going to be as great in the next six years as the last six. >>> still ahead, how does apple's new battery case stack up to the competition? and what about the rumor its lost its design mojo. plus would you eat at chipotle? the answer co

betty: with the morgan stanley cuts will some of these jobs be taken back up?el: some on the equity side. they have the top ranked equities business by revenue. a lot of these banks at the end of the year cut some of the low performers and tried to bring on some others. you may -- the fixed income is more of a secular shift to a smaller business. betty: what did you make of the citigroup cuts? middle: those are in the and back office. it continues this trend we have been seeing in the european banks in the u.s. banks of trying to cut costs. revenue growth has not been the -- the past couple years so they are trained to do with a can. the biggest u.s. banks will -- are on pace for a lower cost base than they had a year ago or two years ago. some of that is on the legal side. a lot of that is replacing headcount with technology and bringing down their cost ace on a permanent level. -- comparedid these to what we have seen in the past or around the same time here in the fourth quarter for the other banks? michael: it is a smaller cut them we have seen in some prev

the latest, morgan stanley, which plans to get rid of 5% of its staff. what this is about the shifting landscape. apple shares tumbling today. we will take you behind that. and we will continue to monitor the price of oil. historic lows back to 2008. how much further could they fall? ♪ scarlet: welcome back to bloomberg markets. it is time for the bloomberg business flash, a look at the -- biggest stories right now. you can work to settle a case related to failures. it referred to put clients into its own products. the bank will pay $267 million. two of its units admitted wrongdoing. glaxosmithkline has agreed to buy the portfolio of an experimental hiv treatment from bristol-myers squibb. earlier this year, bristol-myers decided to quit discovery efforts. the median pay of female cfos jumped 11% last year, more than their male counterparts. women are still outnumbered overall. only 60 female cfos in the s&p 500 companies. at can always get more news bloomberg.com. let's go back to the markets desk. julie has a check on individual movers. , the: darden r

morgan stanley named a price target of 193 and it could move higher by 20%. betty: thank you.h more ahead in the battle of the charts. tomorrow, the economic world is watching the fed. mark, you are looking at decoupling in the u.k., right? mark: yes, will the bank of england follow suit or will it decoupled from the u.s. monetary policy? i have the chart,. see you in a minute. ♪ betty: welcome back. vonnie: you are watching bloomberg "markets."breaking news, this is heated press saying the new york city threat that we reported was the same threat schools in los angeles and determined a. all schoolchildren in los angeles are going home or are at home following a threat e-mail. betty: thank you. vonnie quinn at the news desk. it is time for the battle of the charts, where he look at some of the most telling charts of the day. joe weisenthal joining me, the miss,"r of "what do you and mark barton standing by. knows the fed is probably going to hike tomorrow -- why is it not coming up? betty: you forgot to login. [laughter] joe: may be let's go to mark. betty: market is repaired.

gopro definitely hit a sell over at morgan stanley.t their rating on the stock, cut their price target as well. gopro today hitting an all time low since going public back in 2014, about 28% below it's ipo price. morgan stanley basically says they think there's going to be a lot of inventory there and they see delays on some of their new product launches. stuff day for gopro. back to you. >> thank you, bertha. >>> heading to the close we have ten minutes left. it's later than it's ever been and the dow is down 66 -- no, it's up 66 points. >> up. >> i thought i saw a minus sign. >> it's whip sawing around here. >> the number hasn't been big, we're up 16 and up 19. up next ken stowe val taking closer work at how financial stocks could perform if the fed hikes rates this week. your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird. it's gotten squarer. over the years. brighter. bigger. it's gotten thinner. even curvier. but what's n

morgan stanley declined to comment.nd u.s. trade in oil has fallen low $35 a barrel, headed for a third weekly decline. futures held losses in new york am a in the fed's first interest rate hike in 2016. for more on these stories and others, head to the bloomberg terminal and bloomberg.com. manus: thank you very much. david cameron said he wants to change britain's relationship with the european union. his comments came after fellow eu leaders signaled they are willing to find compromises on his demand to curb welfare. anna: hans nichols joins us from brussels. not sure how late into the night is kept you up. but what was accomplished late into the night? hans: there wasn't necessarily an agreement to disagree. there was an agreement to disagree later, in two months, when you have another summit. in the meantime, with a positive good well, try to finesse this diplomatic sort of challenge -- how do you get over britain's insistence that you will have a four-year weight limit on benefits? there was no real progress. durin

newsmax tv for real news, better talk. >> "wall street week" is sponsored in part by morgan stanley, where capital creates >> over the years, i' ve watched a lot of testimony. we are not going to call out any names, but some of the questions you would get, i would watch you. you would have some of these politicians asking questions about the economy, the stock market. what were you thinking with some of those questions? dr. bernanke: my job -- before i was a fed member and chairman, i was a college professor. my job was to explain it. >> you were the chair of a department. you had to deal with those sorts of personalities. dr. bernanke: that was the faculty. that was another question. but you know, explain to students -- in their defense, congressmen are not economists. they have to learn lots of things. i did my best to explain. i felt people had to understand >> alan greenspan and you once described the federal reserve chairman' s job as being under house arrest with nice jailers. is the job suffocating? dr. bernanke: we do have security, which means you can' t go walking by yourse

morgan stanley welt -- wealth management employees put together the bikes. they'll be given away through the toys for tots program in the next few weeks. >> our goal is really to put young kids who don't have the opportunity otherwise on bikes to get them hate, keep them exercising and give them a love for the outdoors. >> this is the 11th year of the bike giveaway and so far morgan stanley has provided more than 2500 bikes to kids who need a hand around the bay area. >>> the warriors, they're in indiana tonight trying to keep that winning streak alive. mark is coming up to tell us how they did. >> want to check in with keba with a look at what we're working on for ktvu fox 2 news at 7:00. >> a deadly attack near a popular east bay hiking trail. the questions that surround the grim discovery in the east bay. >>> a sacramento area veteran and purple heart recipient got a special thank you today for his service. jonathan allen served in afghanistan for five years before he was severely injured and had to retire. today he was presented for keys to a home of his

we are hearing from morgan stanley. lling us they are planning to cut as much of a quarter of this fixed income staff. stanley, only morgan scaling back their fixed income businesses this year. charter just said last month that they would cut 15,000 jobs by 2018. of their profit here in asia. angie: thank you for that. coming up next, lighting up the markets. traders are betting the fed will offer some holiday cheer. hand-checked: myanmar's former army chief -- angie: the on mars -- me on mars -- myanmar's former army chief -- this is the man who kept him under house arrest for most of his 19 year rule. not clear if his endorsement could lead to the constitutional change needed for her to become president. outdoor activities have been suspended in beijing. air pollution again reaches unhealthy levels. the u.s. embassies monitoring station says concentrations of the most dangerous particle are at 227 micrograms per cubic meter. that is almost 10 times the internationally accepted safe level. azerbaijan has declared a day

morgan stanley announcing plans to cut 1200 jobs. >> those cuts represent just over 2% of the firm's global work force and a source says 470 of them will come from the investment bank's troubled fic or fixed income commodities and currencies unit. those 470 jobs represent 25% of fic staff. in a memo they are saying the cuts will result in businesses that are critically incredibly sized for the current market. while maintaining the ability to deliver for our clients across products and geographies. a long problem area for morgan stanley fic clocked in a strong first quarter but the job cuts the latest in an effort to shrink the fic business. the source says the firm plans to take a severance charge of $150 million in the third quarter to cover the costs of the cuts. no word on what they might actually save the bank. details on that likely to come in january when morgan provides its annual outlook. back to you. >> mike, it's so interesting because this part of the business was the juggernaut for so many years, especially leading up to the chris is, but to some extent as commodities did

go pro stock tanked after morgan stanley cut it's rating to under weight. that tells clients there is nothing to like about the company. in addition to overpricing, morgan stanley says the company hasn't addressed issues with up loading and editing. >>> today is considered the third biggest online shopping day of the year. retailers are calling it green monday. the day was started by ebay in 2007. there are publicized e-mails today. >> we're underway for the top of the hour at the tcl chinese theater where it first premiered in 1977. >> alex, you just talked to harris on-ford? >> it's premiering in the el captain and dolby theater. it's going to be preparing for 5,000 people. you can see the director bringi bringing star wars back. and we talked to harrison ford, take a listen. >> talk about what it feels like to have people love you this much? you're the ultimate alpha male for these people. >> come on. i just work here. i'm just delighted to be here. listen, this is i have loved my life and loved the opportunity to make films and love to work with really

morgan stanley lowering their outlook for iphones. calling for the first ever decline in iphone sales. lowering their forecast for fiscal '16, citing what it calls weak supply chain data points. everyone's trying to game out not just the december quarter but the next year. does this call make sense? >> it does. i think the holiday is going to be strong. tim cook has already said expect the holiday season to be up unitswise and revenuewise ver versus a year ago but after that it's questionable. the apple watch needs an overhaul to be a mass market success i think. beats, i didn't like that to begin with for $3 billion. i think it's still bad. the main defense for it is how do you tell tim cook how to spend $3 billion? but they have not overhauled the headphones, the key product there, in more than a year. that's embarrassing given the demand for that kind of product so there you have it. >> big product changes are what drives it. the consumer still has money for technology that they want. thank god that they did the large form factor p

price target cuts from morgan stanley and jpmorgan.. at this time, he does not seem like a turnaround is insight for 2016. stephanie: thank you, abigail doolittle. lindsey piegza, joining us in chicago. you are noteri, going anywhere. coming up, winners and losers coming into 2016. ♪ vonnie: bnp paribas is writing down losses by nearly $1 billion. france'ss biggest ban is setting aside more capital for italian and consumer banking unit. they reiterated plans to pay 45% of profits in dividends. mitsubishi is delaying delivery of its new passenger jet for one year. it said the mrj regional playing will not be ready until 2018. mitsubishi says technical issues must be resolved. and, jamaica is not just the land of reggae. its new claim to fame is a stock market that had a better year than any other around the globe. the jamaica stock exchange surged 80% in 2015. $5.3arket capital is just billion. that's the latest bloomberg business flash. stephanie: we will bring you the winners and losers of 2016. with all the investors sitting on cash,

morgan stanley saying that iphone sales will drop in 2016 for the first time ever.morgan has an interesting set saying the, and apple supply chain shows signs of early weakness, and the fiscal second quarter consensus estimate seems unrealistic. it has been a very volatile year for apple with the stock trading wings, but amazingly the stock is flat on the year, doing nothing for investors. one thing we know that apple is bringing today though is weakness to the nasdaq composite. friday, we talked about the technical advantages of the nasdaq composite. this is thought to be a bearish signal. the last time it closed below that level was right ahead of last monday. we could see significant volatility ahead. you very much, abigail doolittle, joining us from the nasdaq downtown. qualcomm is said to be suffering the chip business from the technology licensing unit. is a split really what they need? alex sherman joins me now. our sources are indicating it's probably not all that likely. the board has not made a decision, so we do not know for find out but we will this week

go pro stock tanked after morgan stanley cut it's rating to under weight.clients there is nothing to like about the company. in addition to overpricing, morgan stanley says the company hasn't addressed issues with up loading and editing. >>> today is considered the third biggest online shopping day of the year. retailers are calling it green monday. the day was started by ebay in 2007. there are publicized e-mails today. >> we're underway for the top of the hour at the tcl chinese theater where it first premiered in 1977. >> alex, you just talked to harris on-ford? >> it's premiering in the el captain and dolby theater. it's going to be preparing for 5,000 people. you can see the director bringi bringing star wars back. and we talked to harrison ford, take a listen. >> talk about what it feels like to have people love you this much? you're the ultimate alpha male for these people. >> come on. i just work here. i'm just delighted to be here. listen, this is i have loved my life and loved the opportunity to make films and love to work with really talented peo

has cut 12-hundred jobs worldwide in recent days.that includes eliminating about a quarter of morgan stanley's fixed income and commodities businesses.morgan stanley also cut hundreds of human resources and i-t jobs.the company is among several wall street firms struggling with dwindling client activity and trading revenue. google has updated their calender app to help you organize even more. more.you can now add reminders to google calendar.the app has always allowed scheduled events -- but scheduled events come and go while reminders will reappear day after day until you complete a task and swipe it away.the new feature will not only remind you to do tasks -- it will also use the information in your contacts girl scouts have sold two and a half million boxes of cookies online this year.that's landed the organization 10-million dollars in sales. it's only the second year scouts have sold cookies on the web.but overall, sales were down a million boxes from the year before.those iconic door-to-door and sidewalk sales are disappearing.the cookie program was originally designed to teach girl scou

the stock is carving out a new record low after morgan stanley join the bandwagon, cutting shears toight, reducing estimates, and reducing their price target to $12. they say the likelihood of high inventory persists into 2016 amid other issues. there is a very high short interest on the stop, 38%, making it seem reasonable that the stock could move down to the new price target fo. turning to another highly shorted stock -- scarlet: we have breaking news, the president is speaking at the pentagon. today, thebama: united states and our armed forces continue to lead the global coalition in our mission to destroy the terrorist group -- isil. as i outlined in my speech last weekend, our strategy is moving forward with a great sense of urgency on four fronts. hunting down and taking out these terrorists. training and equipping iraqi anti--- syrian forces to fight ground.the stopping their operations by disrupting the recruiting, financing, and propaganda. finally, persistent diplomacy to end the syrian civil war so that everyone can focus on destroying isil. i had a chance to meet with my

barclays, morgan stanley all trimming estimates. our last guest sounded the alarm on apple just last month saying it's time to sale. breaking it all down at the smart board, carter, what do you see? >> it's not getting better. or as the old time technical saying goes it doesn't act well. the nasdaq is down about 6% yet apple is down almost 16%. so what i see, anyway is this. a well defined trend, yes. and clearly a break in trend. we have finally sort of succumbed. now you can draw the lines that way. or you can draw them this way. we put our trend line in, we have a break in trend. we have something of head and shoulders top. and then the long-term, i mean, a break of the neckline here would imply today's close around 112 to about 100. but then the long-term chart is also something to be aware of. we have just now started to break the trend line. it's been in effect for the past many years. we're now below trend on the long-term. we have breaking here. we have head and shoulders top. sell. >> what would make you get more constructi

morgan stanley plans to cut 5% of his equities trading staff. that is according to "the wall street journal." it said they would eliminate 100 jobs in early 2016 and replenish its ranks over the course of the year. morgan stanley declined to comment. chile raises interest rates for the second time this year. tells us central bankers continue to see inflation's running above 4% target for 2015. apple is entering the chinese mobile payment market. will introduce the competing systems next year. ae deal offers an entry to market in which transactions were worth $3.5 trillion last year. deterioration. china paints a bleak picture of the country's economy. we breakdown the latest data out of asia next. ♪ francine: welcome back. authorities say it's housing market shows signs of recovery after they rolled out easing measures but the news is overshadowed by researchers in new york who say the latest china , the country's economic conditions are deteriorating. bureau chief in shanghai joins us with the latest. from china's perspective and we have been t

job cuts are on the way at morgan stanley.k will cut 1200 workers worldwide and take a $150 million severance charge in the fourth quarter. morgan stanley is cutting back its fixed income trading business. public health officials are working to determine what sickened more than 80 students that eight in chipotle in the most recent days. they areieved that isolated case of the norovirus. you can always get more business news at bloomberg.com. would exploret the possibility of buying who if the company decides to sell itself. the word today from the verizon movesome -- such a would build on verizon. marissa mayer may be pursuing the wrong strategy. bet to be ade a technology company when marissa came. in our opinion, yahoo! is a content company. aol fortified them as a media company. thatnk that is the point has been more difficult for yahoo!. they need to get back to their core. yahoo! as a stand-alone, if they got back to the core of content, we would be excited about that. if not, we wouldn't good -- we wouldn't. discussing a

apple shares came up after morgan stanley cut, apple shares are up slightly.ck to watch, one of the biggest valuation companies that we have, of course, traded here in this country. >> nicole: down about 5% just in the month of december. they have some moves to the upside, we hope. before you head out the door let's get your look at your tuesday forecast fox meteorologist maria molina, good morning, maria. >> maria: good morning, cheryl and nicole. today we are going to be tracking more of the same. it's going to be very warm and mild across the eastern u.s. across the western u.s. it feels like winter out there. we have a massive winter storm that brings snow from montana all the way to parts of new mexico and on the move and a foot of snow, it will bring dangerous conditions on the road. we have winter storm warnings in effect. could be moving to the midwest. meanwhile, those temperatures we mentioned they are very mild across the eastern u.s. take a look at the forecast temperatures, 61-degrees, 70's in places like atlanta and gulf coast. let's head over to

but it's not complicated on some banks like morgan stanley, which have big asset management systems.or a big bank, you get the balancing between your liabilities and your assets, and it can be often the case that some banks don't actually do that much better in the higher interest rate environment. for an asset management firm like morgan stanley, they can earn huge with what they pay their customers on their cash balances and what they earn on those floats. so in the case of smith barley in the old days, they could earn $800 million and those numbers have been zero for the last five years. >> i'm curious your thoughts about morgan stanley, because you're so positive on it. there's a lot of moving parts going on at that company and they just announced that they are going to be laying off quite a bit in the sick business. do you actually think it's going to make an impact in the short term? or do is this like a 2006-2017 story, and do you think it could work in the meantime? >> it's trading right at book value, which is just way too cheap for this business. the asset management busine

morgan stanley predicting sales will drop to the first time ever in 2016. lays cutting the price target and a warning from j.p. morgan on the apple supply chain. joining me to discuss, vice president and mobile analyst at forrester research and back with us, david kirkpatrick. it sounds a little gloom and doom. is it that gloomy? >> i don't think there is any gloom and doom in a market that will see 500 million more smartphone owners at the end of 2016 than today. emily: do these predictions were you? >> they don't. there are about 7 billion people on the planet, about 6 billion of us have mobile phones. 3 billion have smartphones. emily: what is your take? we read grim predictions about apple. when people talk about it, they say it will be a little less amazing than they thought it might be. david: i think it is funny and analyst firm drops their estimate of the future price target from 165 to 145 in the stock drops from 115 to 111. that does not make sense. if it is still likely to hit 145 or whatever analysts think it is going to do, you don't suddenly lo

the day down.ded morgan stanley is pulling out most of industrial metals training.loomberg industrial metals index has tumbled 29% this year. wti prices rebounded as much as 2.5% after dropping to their lowest levels since 2009. wti is settling at $39. for more on the roller coaster day in the oil market, i want to bring in john hofmeister. ton, let me ask you to react the volatility we saw this morning and we have seen the last few weeks. it has been a rocky ride. john it has been a rocky ride. do a valuable service to the industry. they move the barrels that are produced and they will move the barrels at whatever price it takes to move them and movement is what is critical. we will see it perhaps drop a little more or we could see it begin to rise. nobody really knows. it is all a seller's paradise depending on which way you are going. a buyer's we are in paradise, were cheaper is better and they can hold it for longer and we are seeing this volatility as people try to make the most of each day. david: how much of this is attributable to what happened in vienna la

in terms of morgan stanley, great company. they announced a cut of 25% of their fixed income currency traders. that's indication and it's illustrate howing slow that market is. how the lack of liquidity is going to continue to hurt that market. i still like it. i think it would be everywhere -- i would say it's working, like joe, i'm not bottom picking. there seems to be an infact wags with picking the bottom industrials, and all that's done is get you to pick the bottom again. we're still not through all the impact of a changing economy in china. i go with what's working. i added -- look, i don't like to bottom fish too much unless there's names there. arcima is beaten up. over the years it's been falling for a long time. this is when you have to buy it. it's a trade. you don't fall in love with it. >> we'll take a look at the chart. it's great to have you back. it's been a while with delta. we have 5.5 billion under management or so. how do you see the market between now and the end of the we're and then into the early part

morgan stanley 143 per 142. the iphone market. >> morgan stanley put a slowdown possibly.t: that apple watch. >> it has not been that great. stuart: a lack of success. amazon. i have often called that the stock of the year. it is way off of its high. >> there is a lot of deep discounting going on. the greatest retail thing in the online community. i think that that is what is going on. people are simply accepting the possibility to. stuart: facebook, apple, amazon. would you buy any at these prices? >> facebook still does not cut it. i still do not get that stock. stuart: larry, facebook, apple, amazon. >> the only reason i would like facebook is because of the oculus risked. i think people will really love it. most people once a trite will not want to play video games on the screen anymore. stuart: have you tried it? >> yes i have. very cool. stuart: did you get seasick? >> it is really really cool. >> well, they came the biggest losers in the s&p 500. you take a look at names such as chesapeake and the like. all of these names. down 70% for the year. they continue to dro

morgan stanley with a 42% drop in fixed income and commodity trading revenue in the third quarter.cking in on those listed shares we're up going in the opposite direction out performing up by 1.5%. also we have auto makers, right? >> we do. they're reporting their november u.s. sales today. sales forecasted to top pace of 18 million for the third straight month which would be the third time that's ever happened. sales were boosted by an early launch of promotions as well as lower u.s. gas prices which are near or pedestrians low $2 a gallon. >> and we'll be focussing in on nissan and how it's performing after a report today suggesting that nissan might be issuing new shares but insisting it has no plans to do just that. it will water down it's stake in renault and they're denying that newspaper report. we're joined from tokyo. >> yes. nissan is mulling action to ward off news by the french government who is aiming to grab more influence over renault. it will allow long-term shareholders of french companies to double their voting right. the french government is the top shareholder a

wrom morgan stanley, d yen you look at rates, he is saying it will be damaging. to think so? tom is making good points. the rate -- we have to understand, these rate hikes that she is talking about for 2016 is really a question of option out it. let's say that we do not to the growth or inflation that we want, what can she do? she can readjust it lower at the march meeting or some later date in june. i think that option out he is important. i do not think that they wanted to remove that from the marketplace. and i think it is a pretty good decision on her part to do that. host: where is the economy right now? did she have the economy to create optionally? -- option now it's the -- optionality. we will get that story later. wouldook, here is what i say. in regard to the feet of whether -- fate of whether it is for hikes or less. people have to brace themselves for this, this is a reality, inflation is on the rise. for technical reasons, yes. we'll get ahead on inflation. if you think that crude will end with $45, if you think that next year it will end with $45, that o little

morgan stanley judging the ecb will not raise rates for another 36 months. betty: wow. 2018. november betty, that is just a year before mario draghi's term ends. raisingre talking about rates. this is insane. let's go along with it. a really good article by simon kennedy. saying mario draghi will be long gone by the time the ecb actually raises rates? guest: i guess it begs the was the lasthen time the bank of japan raised rates? when will the bank of japan raise rates? the inflation target will be pretty hard to meet. i look at it from my desk and firm isomeone in my trying to come up with a forecast of the date. i do not know if i will still be around when they raise rates, let alone mr. draghi. be 1994, the last time the bank diverged -- cutting rates. many, on a divergent path many a month? ,ome say the fed could cut rate hiking rates, before the ecb raises rates again. i think we are penciling in next onends that the happens in 2019 -- mark: well before the ecb cuts rates? kit: by the nature of this cycle, if you think that the u.s. economy will start at the point where

a team of analysts at morgan stanley cut the rating to underweight and reduced estimates and took thece target to a low of all dollars, saying the likelihood of high in 2016, among other issues, including valuation. there is a high shortage on the stock. some investors are happy. much. thanks so i have been waiting for this all morning. battle the charts. what have you got? mark: you are wheeling out michael mckee. i cannot believe it. in zerois likely to end interest rate policy on wednesday but our emerging markets -- are they ready? ♪ david: you are watching bloomberg markets. the european it is time now for the global battle of the charts where we take a look at some of the most telling charts of the day and what they mean for investors. mike mckee joins us now. mark barton is still with us in london. mike mckee joins us. we will let you kick it off first. mike: we have all been waiting for this for years or the new star wars movie opens and also a fed meeting. both.k at the earnings of we put the numbers altogether and they earned about $4.4 billion. the fed makes money. on qe, s

morgan chase, morgan stanley, they dominate., ceo's looklook for for advice and independent advice, and the boutique banks have carved out a niche in that area, too. it is a bit like our business. you have the big holding companies. tom: are you a publicist? martin: we have -- call pubs, i publicists trying to get together. it did not work out because of social issues. if it was social issues that stopped it, the two ceo's should have stepped to one side. , it'd benefited shareholders and clients like they said it did, they should have stepped aside. wherere we in a world publicists -- martin: there is a serious point here. given low gdp growth, lack of pricing power, focus on costs, you will see clients, media owners, and agencies more consolidation. in this world of slow growth, that is what people look for. tom: the other idea here is the cornell -- does cornell merge with dartmouth? francine: i do have breaking news. chargeis saying that the will be $780 million. we now have confirmation from dupont that we will see about 10

he is very close to t-mobile, when he was at morgan stanley.hat maybe that means comcast will get into the wireless space. i don't know. comcast is in interesting position. they did not let time warner cable. huge deal. a lot of assets at their disposal and they want to do something big. some people think it will be wireless and some people think it will be europe. it will be elsewhere globally because comcast is a u.s. company right now by and large. they own nbc. the question is, today's -- do they decide to go internationally or look domestically and stay close to home doing smaller deals while this administration is still in power? carol: corey and i spent so much time talking to you about content and how important it is for media companies. how is the drive for acquisition of content shaping the m&a landscape in 2016? alex: i mentioned malone in terms of ebay. this could be the year john malone becomes the main consolidator of content. we will see if he brings gate.er starz and lions if that deal happens, sources have told me that malone's

. >> morgan stanley says the euro zone will brush off a year with political risk in 2016. bank forecasting growth of 1.8% year on year which is above consensus. this has the block swings toward more monetary and physical policy easing. let's get that outlook for the chief european economist at morgan stanley. good morning to you. let's kick off with the political risk. the major elections in germany and france they won't happen until 2017. why do you think that 2016 will be heavily fraught with political risk. >> they are essentially three political risks that we're looking out for in 2016. one is the conclusion of an election cycle and we have the election in late december and ireland next year. the second factor is the refugee crisis. and i think that creates political challenges both at the national and also at the union level and last but not least the u.s. would like to renegotiate it's position in the european union and will most likely hold a vote on the outcome of those negotiations sometime in the course of next year. >> with the influx of refugees and the terrori

it comes a day after morgan stanley cut its iphone outlook as well. jason, we always like to sort of needle analyst who's do channel checks, but more and more people are asking whether these are actually on to something. >> wrau. i mean, listen, the iphone sales have been tremendous, and it's 60% to 70% of their revenue earnings, and, you know, the watch has done fairly well. they're going to do 20 million of those in the first year. the question is are people going to keep upgrading their phones, and they going to chippewa at the android base. i think that's actually where i'm optimistic about it. there's talk of a smaller iphone in this next generation. the 7c, if you will, which will be -- in terms of size, four inches, and fit very nicely in your hand. i'm very bullish on that if they can capture some of the low end market and people who want a smaller phone that's maybe a little more competitive in terms of price. i'm bullish on apple. i think people under estimate what a delightful product the iphone is, and people's propensity to upgrade them e

morgan stanley has said we are rebalancing and that might not happen until 2017. it might happen as late as 2016. let's look at the root. it is falling, down i-4 tenths of 1%. sincen't lows not seen 2004. there is some selling it going on in treasuries western mark --? . investors are looking in other vehicles. the yield is up by two basis points to 2.2 1%. this is the highest in the past five days. let's take a look at currencies and the euro. it is rising against the greenback right now. this is the highest against the dollar since december 2014. betty: thank you so much. let's check in with news headlines. i want to bring in vonnie quinn. in endingnn: talks syria's civil war will continue next month. rounds of previous talks stalled. what to do about syrian president a sod is the sticking point. syria and human rights groups say's nine students died when a mortar share in a school for girls. isis is blamed. a number of refugees crossing into europe is one million. that is four times higher than last year. about 4/5 of them arrive by see. they are fleeing the sy

tom: are they your friend at morgan stanley?jim logan is a big client, but could one make the argument that this is financial engineering mania and if they are going to go along anything or anyone, it is investment bankers just cutting and chopping up -- to put something up and bring it back apart, it does not seem like there is something a strategic happening. >> and lawyers. they've shown that it does not over the long-term help shareholders to have these megadeals. it is a bit of a repeated story we've seen before, but if you look for 10 years down the line, they actually decide they had to write out a bunch of different values, they have to start selling things off, this energy did not work, they could not mesh the system. it is hard to protect that because you have a change in economic environment, you cannot look at it -- when you are trying to forecast what the value is going to be, you are forecasting that based on your knowledge today of what you think the future is going to look like. tom: what i've learned in the last

in a key level after morgan stanley predicted i. phone sales will drop for the first time ever. and how low will crude go? investor who's been making money on the oil collapse gives us a trade update. as we head to break, take a look at the s&p sectors. right now, there's wti. there's the heat map. what are we looking at? there's the s&p sector heat map. we're switching to the s&p. down .25%. energy helping to try to bring the s&p positive. you're watching cnbc, first in business worldwide. ♪ now more than ever america's electricity comes from cleaner- burning natural gas. and no one produces more of it than exxonmobil. helping dramatically reduce u.s. emissions. because turning on the lights... isn't as simple as just flipping a switch. energy lives here. >>> we are back and there is a shot at the room in the pentagon where we do expect president obama to make a statement in a matter of moments. we're going to take you there live. following a meeting between the president and the national security council regarding the strategy and offensive against isis. expecting that in a ma