morgan stanley joins the club.revise our fedco and expect the fomc to raise rates to september 2020 to two quarters earlier than our prior forecast. in 20 23, they expect another three times. they look for three hikes next year and three in 2023. lisa: the pressure is on fed chair jay powell next week. how much does he edify the ideas getting confirmed to markets that they will raise rates one or two times next year and follow up with additional rate hikes next year? i wonder how much flexibility bought himself that she bought himself. jon: we had the call from bill dudley. he is looking for the dot plot to shift and 2024 from 180 to 250. kailey: that goes to show you it is not just about one lift off his, it is about the pace of the cycle and how high the rate eventually goes, how far it had to get, what is our star. these are unanswered questions and the market is focused on liftoff, how the pace of tapering dictates when maybe the fed will have the capability to do so. then there is a hiking cycle that has to ha

ellen zentner, morgan stanley chief u.s. economist.is bloomberg. ♪ ♪ >> when we go through a period like this, of course we are soul searching. are we missing something? we double down on our research and our modeling. what you should also know is that to get to that 40% compound annual rate of return, we assume masses multiple compression from today's levels. alix: that was cathie wood, ark investment ceo. kitty gray felt -- katie gry fell -- katie greifeld is here looking at more. katie: this is the biggest etf in the lineup, with almost $17 billion in assets. sold off almost 150% last year as big tech dominated. starkly different picture as 2021 comes to a close. you can see it is almost down 20%, with some of its top holdings like tesla and roku falling from their peaks. that is in a year when the s&p 500 is up almost 24%. the firm is going through a bit of soul-searching as a result, and light was set on -- like was said yesterday. it looks like investors are going through a bit of their own soul-searching. excluding the ark trans

charlie: we should point out that the morgan stanley memo that fox business has exclusively obtainedoint out that morgan stanley has the biggest brokerage salesforce those are people that deal with the average investors, you're a broker when you want to buy stuff from morgan stanley that person has been encouraged particularly if you live in new york to stay home and do your business from home. that doesn't mean you can't meet with clients but you probably shouldn't meet with them, they said, in the memo, keep gatherings extremely small, stay-at-home, still provide what they consider good customer service, but do it remotely and i think this is just the beginning. i think what you see now, liz, is aside from this exclusive news is like a movement directly towards a rehibernation on wall street as covid surges again. ubs this is exclusive to fox business, canceled its christmas party, lion tree canceled its christmas party. we just confirmed that goldman sachs canceled its christmas party after saying it was okay, we reported that earlier in the week just today they canceled it. jpmor

tom: morgan stanley was an up on apple as well. we've got to make note we are seeing sell-side step and betsy grayslake yesterday with what she did with goldman and wells fargo. all these people are resetting for q1. it is a boom american economy, even if there is large inflation. jonathan: i imagine we will see a lot more of those calls. wells fargo to overweight off the back of their call. at least on the analyst side of things, additional rate hikes from the fed. lisa: why are we not seeing it placed in? people are increasingly pricing in a rate hike next year. this is what i want to hear addressed, including how much consumer lending can get back up to speed? jonathan: how high can rates go? morgan stanley, from mike wilson over the weekend. lisa, your response? a new covid variant because rockets, but we view that as secondary to the real culprit -- lower valuations, tapering tightening. lisa: to me, that rings true. this rings more true than omicron. omicron seems to be fading from the market. jonathan: not the index level co

morgan stanley raising its price target to a street high of 200. end of benefits stemming from new products come in particular ar and vr. joining us now is bloomberg's ed ludlow. how do we get 200? how did she think we will make it? ed: it is interesting. she basically made the point that if you think about your services -- new services and product along the way, we are talking about apple watch, airpods, services, she does not think those future product lines augmented both reality and some kind of car product are reflected in the price. the big problem with that is the secrecy around it. mark berman does a good job of breaking the scoops of what is coming up, but in the interim, we do not know the substance of these things. and she think that will be more effective on the share price. alix: she is not the most bullish analyst on the street or anything. do other analysts who have the bullish price target have the same thesis or do they see it as the apple super cycle pushing it higher? ed: apple is the benchmark for technology, not just handheld d

it is a 900 spread between bmo and morgan stanley.ne heck of a move this year, a 15 on the s&p, advancing 0.3%. your market up 0.3%. this is bloomberg. ritika: with the first word news, i'm ritika gupta. president biden's chief medical advisor says data from the omicron variant is encouraging. the data represents only the first few weeks of the omicron wave. it does not look like there's a great deal of severity to the very end. "central's are trying to give a boost to the slowing economy. that will release 188 billion dollars of liquidity. the move puts the people's bank of china on a different policy path than many of its peers. the u.k. will push the u.s. to remove trump era tariffs on british steel and aluminum. the u.k. trade secretary meets with gina raimondo. he says improves trade relations with the u.s. would be met of the major benefits of leaving the european union. shares of lucid are plunging. lucid completed to deal was turtle capital corporation before its market debut in july. another legal defeat for uber. the ride-ha

everybody is there with the exception of morgan stanley and citibank.here it, the more conversation is how steep the rate pass is from there? where we going and what kind of rate could we tolerate? give us an idea of what that conversation sounds like. andrew: it is somewhat of a conundrum for us. you look at what's happened as the market has pulled these rate hikes earlier in the market has moved towards earlier rate hikes you have short-term interest rates moving higher. if you look at the 10 year real yield at -100 basis points, equity rates on omicron, not what the feds have been doing are still historical highs. there has been no meaningful tightening of financial conditions. it is not clear that the fed wants to tighten financial conditions yet. they are worried about these correlated upside instances to the forecast. if that is the story in 2022 there is inflation concern. that means expectations for where does this get to in the cycle? where is the long-term 10 year yield expectations? i think we will watch the data and see if we get there. mayb

so, one of my most technical, smartest people at morgan stanley had a college degree. it's really about those puzzled soft solvers. those intellectually curious. those relentlessly, genetically wire to be collaborative people that were looking for. so, aptitude and attitude. will be able to bring in people who are much more flexible way, and will be able to pay them closer to market. it will also, i think really importantly, allow us to bring people in and out of industry. some people want to come defend their nation. and for everybody that wants to, i would welcome you to reach out to me. or if you know somebody that wants to join cisa. but in the end of the day, not everybody wants to make a career in government. so, we want our people who maybe come in for a couple years, two years. we're going to kick off a program here in the next couple months. i'm not going to give it all away here, but we are really trying to increase opportunities to strengthen the connective tissue between the public and the private sector, because that's all about understanding each other an

a ton of calls coming from morgan stanley.tens and 30's focusing very much on the front-end for next week. twos right now just short of 70 basis points. a conversation for morgan stanley shifts from january to september 2022. where on earth are we going with the ecb into thursday next week? lisa: beats me. i find this fascinating. the news today that they are looking at possibly expanding into reinvestment of the emergency bond purchasing program to prolong it after previously talking about maybe trying to start tightening at some point in 2023, i mean, honestly. can you make sense of this? jonathan: can you? we were talking about flux ability of the federal reserve -- about flexibility of the federal reserve hike if they wanted to, to do qe forever. kailey: i have no idea. the adverbs you could use here are very high in the amount. but i think this will be contrasted against the boe and the fed next week. what is the ecb doing, going perhaps the other direction in a world where the other majors are going in the other directio

really looking forward to the nuances he sees, his economic team at morgan stanley.tick told me this morning dow points up 220 three points. 800 points off the bottom. first, listen to that out of you -- the data view in london. abigail: basically, -- caroline: basically, chair powell schooling the likes of andrew bailey as to how to get communication right from the central bank. s&p 500 futures up on the guidance that they can indeed engineers and sort of soft landing, taco inflation front and center, but managed to keep the economy grinding higher. the stoxx 600 kind of on a catch up after yesterday's move in the united states. we had a bit of a lackluster trust -- lackluster trade yesterday. a pound, the biggest move since july. here, andrew bailey has once again wrongfooted the market. goldman sachs thought there was an outside chance to get a rate hike. we get it today. just to the tune of a small move, but nevertheless, that spike to the pound higher. the vix currently stays lower by some 4%. let's look at how the bond move has been interpreted. we see the u.s.

does that hurt morgan stanley's results overall? >> it doesn't.he retail activity within e-trade is not a major economic driver for this firm it is a major economic driver for is the options type business the deposits we have about 330, 340 billion of transactions. right now it held up i'm astonished that's fine. you make no money on the transactions that's not the economic driver. >> want to talk about operating in china do you do business in china proudly or begrudgingly? >> not begrudgingly. we are proud of the business we have to supporter global corporations of china and corporations for decades now and hundreds of employees there. we have taken full control of the joint venture and of the asset management venture fundamentally we don't try to front run u.s. policy. we are a u.s. company and follow u.s. company. >> i totally get that. i do wonder if the temperature change jd the white house saying it is not sending officials to the olympics and due to the genocide and crimes against humanity genocide confirmed by the white house. does that no

lots morgan stanley bullish on simon property saying buy the recent dip. but are malls at risk with the rise of omicron? >> i think it's omicron, from my sorority days. >> covid has become a sorority delta omicron. all right. we will discuss when "power lunch" returns there's lots of people who are confused about which medicare plan is right for them. hey, that's me. i barely know where to start. well, start here with me, karen. i'm a licensed humana sales agent. well, it's nice to meet you karen. i'm john smith. hi john. at humana we know you're unique so you have different needs from other john smiths. yeah, i've always thought so. and together we can find a plan that's right for you. great! i go to the doctor a couple of times a year and i have some prescriptions. but i'm never fully sure what's covered and what's not. with humana's all-in-one medicare advantage plans you get coverage for hospital stays, doctor visits and part d prescription drug benefits. all for an affordable and sometimes no monthly plan premium. do you have any more information? sur

morgan stanley wade that a few minutes ago. an idea of the level of how much hiking there would need to be to see a tightening of financial conditions. steven: that is the toughest call there is, understanding why long-term interest rates are as low as they are. even when the economy seems to be picking up. it is possible we have injected so much liquidity into the market that the market fears even a modest degree of tightening would end up creating a financial event. the long-term real interest rate level has been marked down. there is evidence that could sustain high real interest rates that we have not seen in a while but we are reluctant to think the fed can go that far. plus, the u.s. economy is it straight now because people are working for -- looking for work, they lost their benefits, they are looking to get picked up. the time we get to the middle of next year all of those guys will have been so that and what will be left is the people who are having hard times getting jobs. the perspective on how far yields can go and

jonathon: robert rosener of morgan stanley.me minister yesterday with dramatic words expecting a tidal wave of omicron infections. at least one person has died in the u.k. from that variant. caroline: anecdotally, i've never known so many people with covid as i do now in the united kingdom. it is up to you whether you still want to travel or whether you are so going to go to any christmas eve events and going to restaurants. it has real impact on the economy and clearly the prime minister is worried about it in the u.k. jonathon: still waiting on the picture from the people who matter before we set policy and what they are worried about and how contagious is it and how deadly is it? we are getting a picture slowly but not the full picture. lisa: can the bank of england remain on hold despite inflationary pressures? it is a motley picture compared to the statistics. jonathon: goldman thinks they skip this week and maybe convene in february. maybe the year ends wednesday or thursday. lisa: no, unlikely. jonathon: all-time highs i

probably can't pay them why campy people at morgan stanley. but we can pay them closer, so we can be more competitive with the private sector. at the end of the day, we're looking for people who want to come in, whether it's for a career or for a couple years, to help defend their nation. that's a calling, it's an ethos. so, yes, we want talent, but we want the right type of talent. the congressman knows that if i feel like i need something for the nation, i will call him up or texted and will have that conversation. it is fabulous to have that kind of support and going to your point, i feel that it's very bipartisan. which to me as a longtime independent and somebody who has served in both administrations, i'm incredibly courage by. >> i think you're on mute, jim. >> great, can't be a zoom call unless somebody does that once. >> that's right. you get the price, jim. >> thank you. when i was working with representative michael that on the bill that eventually created cisa, i actually wanted it to become cfc, the cybersecurity agency, and leave

i am courtney thompson and we are morgan stanley.ndependent financial advisor, and have an impact on the issues i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com ♪ ♪ ♪ ♪ oh no. >>> ho, ho, ho ♪ ♪ >> not again ♪ ♪ >> oh, no. ♪ ♪ ♪ ♪ the mercedes-benz winter event. get a credit toward your first month's payment on select models. >> for the gifts you won't forget, the mercedes benz. as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage. small businesses like yours make gift-giving possible. now, comcast business has an exclusive gift for you. int

that is where morgan stanley differs. they think the federal reserve can wait. tom: td securities with an outlier call. we will get to that in a moment. i'm going to look at the vix. in the last couple days, is solid -- a solid .0930 this morning. jonathan: the nasdaq advancing 1.8%. we have talked about the front end, approaching 67 right now. unchanged. some stability here. and anybody whipsawed by crude, we're back to the 70's, to $71.25. tom: right now, ashleigh oakes hart is joining us from td securities. she is working on the foreign-exchange calls. the outlier here, an interesting call i yield dynamics -- on yield dynamics. very simply, how exposed is e.m. to sudden jolts right now? ashleigh: very exposed. a lot of emerging-market central banks have done work to raise rates. you mentioned brazil. we expect another 150 basis points that would keep them off the all-time low of 2%. mexico and chile also expected to tighten. they are really targeting inflation only, not growth, and they are doing work to combat very high inflation. in chile, the highest since

having spent the last four .5 years at morgan stanley, it is interesting, two operations -- observations, when i was looking back at the government from the private sector it often came off as incoherent, not well organized to support the private sector, and that is why i think having an entity that has all of those organizations is so important to show to your point in near real time. we have to move at the speed of cyber. we know that our adversaries are. that is why i think that coherence, that cohesion, munication of authorities and superpowers across all of the federal cyber ecosystems can make a real difference. >> fail fast, test and the wild stuff, it is critical to success as you know. speaking of not telling fast -- failing fast, lead to get your feelings on president biden's executive order. two months later you are confirmed as the director. given the very limited amount of time we have here today, i would love to get your thoughts on two specific fronts that are front and center for me personally and probably many people in this room and back to this bridging the gap between

prior to that, at morgan stanley in new york. so this is sort of a new york event. i wasn't planning that when we did it, but we have upstate and down state covered. distinguished career, two tours of the white house, deputy for counterterrorism at nsa, two-time recipient of the bronze star, west point graduate, and she asked me to stop there because she doesn't want me to go through the whole list, but i'm only halfway through. so again, two great speakers. two leaders in the field. i think critical infrastructure protection has been highlighted by recent events that we have all seen. by the ransomware episodes and more importantly by the activities not just of russia but of china and iran. so this is a very seen. not just the activities of russia but china and iran. this is a timely serious discussion. and representative, let me turn it over to you. >> thank you very much for that nice introduction. and obviously jen is an amazing person and i'm happy to be here with her. thanks for having me here. i can think of no better way to closeout national cyber security a

morgan stanley's adam jonas says it's, quote, the one that can challenge tesla.hares are up almost 1% right now. another ev name, lucid motors plunging after the sec subpoenaed the company for documents related to its spac merger with churchhill capital those shares down about 13.5% right now. finally, check out bitcoin that's trading below $50,000 after falling as much as 17% over the weekend we're going to get into that a lot more a little bit later on in the show, mike. >> all right dpl comments from fed chair powell suggest an important shift is under way at the federal reserve. steve liesman joins us with that pivot, steve >> mike, yeah. a major shift under way at the favre that amounts to the beginning of the end of the fed's massive easing policies. the fed not only to speed up the taper at death meeting but could begin discussions about a series of steps to hike rates perhaps earlier than the market had previously thought among the issues that will be or could be soon on the table the faster taper and how soon to hike, how fast and far, and even the quest

. >> wear a scuba suit underneath like tom brady >>> disney down nearly 20% morgan stanley coming outnote defending the media giant saying the selling is overdone overreaction should you believe in the stock? our trading nation team will take it apart, next. ♪ ♪ ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪ i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com ♪♪ care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank. truist. born to care. >>> welcome b

so this is a huge 180 at morgan stanley. what i'm hearing from gold plan sacks and j.p. lot of the same stuff. they're rethinking their return-to-office policy. >> neil: they're all doing it. apple and google and facebook and a host of others are saying keeping it open-ended. what is going on here? >> listen, for new york city, this could be devastating. just any the city's economy after it was closed down in 2020, mayor de blasio and governor cuomo turned manhattan in a playground for homelessness and criminals. people weren't going back to work. restaurants couldn't serve people inside. a horrible situation. the city is just now coming back and these lockdowns, even though they're not government imposed will throw a monkey wrench in, this your prior guest made a great point. my brother works in a major hospital. but if you're vaccinated, the chance of you ending up in the hospital or certainly the icu unit, which is even worse are low. even with the variants. the question is do we shut down everything for something that is low risk like that for most people that are va

morgan stanley talking about the flight to safety benefiting apple.wonder if that is different from what dan was talking about. jonathan: looking forward to the catch up with dan later. tom joined twitter in march 2009 . tom: it is true. [laughter] jonathan: your equity market up 59. you have had enough already this morning. ♪ ritika: with the first word news, president biden warned president putin that russia would face severe economic penalties for invading ukraine. the leaders will have a video call. officials say the president will also tell that a marabou -- vladimir putin that there will be a benefit if he makes an effort towards diplomacy. the biden administration has decided not to send any officials to february's games aging. encouraging users to take a break from time to time. sharing data shared by facebook meta-platform. suggesting that they look at something else and reminding users about alternatives to social media, like going for a walk. bring news will continue to do all it can to stop -- to help a family, one year after their daughte

but that is not -- how we have been looking at supply chain attacks and even at morgan stanley we were very focused on securing the supply chain and ensuring all of our vendors. they were vetted and secured we could spend one billion dollars that a big bank, but we are only as secure as our weakest link, and that is why at the end of the date this collective sense principle is so critical to all of us, because everything is connected, everything is and it -- interdependent, therefore everything is vulnerable. the software supply chain work on this. the big news out of that was the bomb. software build materials. we need acronyms that only some lake 80s rock bands. so you know the s bomb, what's in the? it's not a perfect solution is because you see what's in the bill of materials does not mean it's all secure. but it is a good way to start incentivizing and knowing what is in your products, knowing it is in your inventory, and really leaning into the importance of the software supply chain, and we've got some world class experts on -- for helping us. we are now a global lead in the glo

. >>> now to a bold call in the tel-comm space shares of at&t popping after morgan stanley upgraded the stock to overweight from neutral. at&t shares had a tough year down nearly 20% and near lowest level since 2009 analyst and managing director at morgan stanley made the call and joins me now simon, this is a tough one, because the dividend payout in a wayused to be, i guess. why is the value here now? >> sure, jon, we've seen a significant underperformance by the telecom stocks during 2022 on fears of wireless wars. actually, underline performance has been pretty good at&t led the wireless industry in subscriber growth the last couple quarters and we still see good momentum in the core communications business going through the next couple of years. but, really, the genesis of our call is combining the attractive entry point on valuation with the upcoming completion of the warnermedia-discovery transaction. so over the next few months we're going to get a lot more clarity around what sort of structure they're going to have for shareholders to get that discovery deal completed and by mi

so i'd like to know -- >> i like schwab very much i have been a client of scquhab. >> morgan stanleyhwab is a great company. let's go to david in florida david. >> caller: hi, jim big west palm beach boo-yah. i'm in a house of pain. >> which one which is your pain house >> caller: well, c3 ai do i buy more, hold it or sell it >> no. it has to make money that's the whole point if they're not making money, we're not recommending them. we have enough problems with the ones that are making money the only one that's not making money is snowflake and frank sluman let's go to dan in kansas. i love it. the chiefs dan in kansas. dan. >> caller: that's right. boo-yah, jimmy chill, from the land of patrick mahomes. >> oh, man i hope kelce is okay >> caller: how are you doing today? >> i'm making a comeback i'm a little more -- you know, i'm fair i think if the quarantine should end. i play by the rules. what's going on? >> caller: ignore the haters as one of your disciples i own a high growth tech stock that has actual earnings. should i add to my position in the trade desk >> you know, jeff gr

>> i would buy morgan stanley -- the club bought a lot of morgan stanley right here i just don't thinknley, james gorman, should be viewed as having anywhere near the risk of the other banks. i think it's about time that people realize that morgan stanley's business is very advisory particularly after the e-trade the idea it should trade with the others i think is -- shows a lack of knowledge, david just a lack of knowledge >> all right jim and leslie, want to get to meg tirrell because we haven't spoken much about the omicron variant and that positive data from moderna at least in terms of dealing with it, meg, so much going on here. moving quickly >> very quickly. seeing cases, hospitalizations and deaths on the rise move than 130,000 cases reported every day here in terms of the breakdown between omicron and delta the national picture is still fuzzy. the cdc will probably update us tomorrow we got the last update on tuesday of last week when it was 3% nationally but 13% in this region of new york and new jersey over the weekend we heard from houston methodist hospital 82% are omicro

james gorman of morgan stanley saying it is no fad.omments from jamie dimon and other bank ceos talking about this. today, bitcoin holding above its $50,000 mark. $51,000 a coin. we have seen bitcoin gain substantially since its low in november. it was at $68,000 on november 10. it dropped substantially. so far this year my -- bit digital mining company had a difficult year. 7% higher roughly today. after an 8% drop. results have been disappointing. bloomberg galaxy index, the crypto index year-to-date is up 240%. today, just up 3.3%. the sec continuing its harsh look at the crypto world. we had the agency rejecting a pair of spot etf filings. valkyrie and crypto coin -- crypt coin. that was a bit of a land grab, the first to get that past the sec will be happy for sure. >> everybody thought when it comes to crypt though -- lee travers, ceo of finance australia joins us now from perth. taking a look at the year that was when it comes to the crypto landscape, even by volatile standards it was quite a year. we had with -- index doubling,

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that's jpmorgan, morgan stanley, and goldman, so it's up to individual departments.distancing but there's no blanket ban from what i understand at those three firms and i told you that would happen , and the reason why i said it would happen was twofold number one is that it's basically the core reason why those firms are forcing in many ways, their employees to return to the office. if you say you've gotta come to the office it's really hard to say let's ban christmas parties because you're in the office so it only makes sense. again, this is just how two different parts of wall street are handling this. i mean listen. i know it sounds sort of, you know, we're covering whether a company does a christmas party but i think what we have to look at this is in a more broader context. companies are going to have to figure out how to operate in a post-pandemic or an endemic environment with covid as it remains here but maybe not as the pandemic that we seen in 2020. amid trying to figure out how to operate on this , you know, one of the things that they figure out is how d

you as director of the cybersecurity and infrastructure security agency and prior to that at morgan stanley in new york. we've got upstate and downstate covered stuff a distinguished career, tutors at the white house, two-time recipient of the bronze star, west white graduate and she asked me to stop there because she doesn't want me to go through the whole list but i am only halfway through. two great speakers into great leaders in the field. critical infrastructure has been highlighted by recent events so it's more importantly by the activities not just of russia but of china and iran stop this is a very timely series to, a discussion and kako let me turn it over to you. rep. kako: a nice introduction and jim is an amazing person and i'm happy to be here with her. great to have you here and i couldn't think of no better way than to close out national security awareness month. i want to thank her for service over not just the past 100 days in her new role but 24 years in the military and i'm thoroughly impressed by close relationship with her and have no doubt that partnership is the resul

morgan stanley on board with wall street at this hour, saying they're not concerned. morgan people are not concerned about omicron as a major risk factor, in a note to clients the firms strategists wrote, " tapering is tightening for the markets and it will lead to lower valuations, like it always does at the start of any recovery." the note comes after fed chair jerome powell said the central bank will evaluate a faster tapering schedule during its meeting next week. the last one of 2021, and then of course, the cdc just advised americans against travel to, write it down, france, jordan, portugal, and a few other destinations and they are citing covid-19 concerns, so what should the markets be more worried about? the fed or omicron? to our floor show traders kenny polcari and scott redler. kenny, morgan stanley says it's the fed that is way more of a risk to the markets, not omicron , but i mean, i'd go back to friday after thanksgiving, and we saw wild moves all over the place, because of omicron. which side are you taking in this one? >> i'm on the fed side, because

morgan stanley lowering the price target on disney, though maintaining its overweight rating on the stocksaying shares have overreacted saying that the media giant has things that stand apart from the competition. they say a key point of the concern is whether disney's u.s. streaming business has stopped growing. for all of the companies there's huge pressure to shift to a direct-to-consumer model and keep the subscriber numbers moving higher. >> they're all in slightly different parts of the media space but sinking together, wu you said it, but suggests that competition is a problem i even think about star link and we have talked to analysts about this, asking about a name like comcast, obviously self-interested there. like, you know, they've got wireless, 5g pressures coming. then there's regulatory concerns then by 2024, so we could be talking about competition from star link. are they right >> well, look, i think there's definitely the sense of convergence. i was e-mailing with craig moffett and he was saying that he sees convergence as being an issue here, and that, you know, is a pe

morgan stanley says staff that have to be in the office in the first two weeks of january will have to wear masks when not at their desks. it applies to all occasions even for those that are fully vaccinated. citi and jeffries are revising their plans to return to the office. dani: european markets opening flat on thin trading. this comes amid market optimism that the economic recovery will shake off the omicron variant. let's get more from kristine aquino. we are also joined by stephen isaacs from alvine capital. the all-time highs we saw in u.s. equities yesterday, how much of that can we attribute to some of the data points we got out, a huge sum of data before the christmas break started? >> i would not attach too much meaning to what we saw yesterday in u.s. price action. we are in the thick of holiday trading. volume is then as is -- thin as is liquidity. this is probably a function of the good news we have seen in the omicron situation both in terms of the risk of hospitalizations as well as more positive news in terms of the efficacy of boosters. there is not a lot of people in

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that was after morgan stanley gave it an equal street hi. they say the market is already. -- pricing and future products like augmented reality and even in apple card. it is going to spin off the self-driving unit but also retained a significant state. interesting what that means for that company. >> we want to stick with that intel news. the company planted taking it self-driving car unit public by the middle of next year. the chipmaker will remain the majority on after the shares are listed. since then, the unit has been consistently growing faster than its parent. dan, how big do you think the spinoff could be? >> i think the momentum in this particular space is tremendous. we see the valuations that have gone into some of these startups. rivian, over 100 billion. we are hearing numbers like 50 billion, i think it could be larger based on the amount of success and just the secular trend of automotive and the acceleration of semiconductors and the role they will play over the next decade or the advanced automotive technologies. >> how will

morgan stanley cautious on their position.y make some interesting points about what is going to happen. we have gotten conditioned to the idea we are delivering and able to manage outside returns. it has been a fantastic year this year. maybe we go into low single-digit or high single digit, but it will be single-digit. in that kind of environment, do i want to position for the dip? do i need to keep capital back to take advantage of those opportunities or do i just want to be fully invested throughout this entire process? kathryn: it is a fantastic idea to have some dry powder on the sidelines for any potential dips. there are questions still in the air, not only from the covid perspective but the monetary and fiscal policy perspective, as well as with economic growth. is it going to be a steeper slowdown than people expect? we have also heard from goldman sachs and they reduced their economic outlooks for 2022 for the u.s. economy a couple times in the past week already. it is a fantastic idea, but i agree we have to be defe

i think morgan stanley travel trust has been tbuying i. mike in texas. >> caller: how's it going? >> going well. how about you? >> caller: good. thank you. i want to see what is going on and what your thought on virgin galactic holdings? >> it's classic example of the stock that you want to buy when the fed is easing or got rates low. when the fed is tightening, there's no value that you'll get. tom in alabama >> caller: my question about at&t >> you know what, today it got upgraded i said today at 22 buck, the hate is over i'm not longer bputting it on there. it's got low enough. i'm going to stick by that position even though the stock was up very big today. enough is enough no matter how much i don't like those guys and i don't at these prices, enough. let's go to mike in new york mike >> caller: booyay. thank you for doing something that matters to be public. >> thank you. >> caller: i know they are launching companies into space that you like. i looking for small cap niche companies. i found one and i think it's great. t company growi

morgan stanley liked this transformation to a direct to consumer business, digitalization.l is that online sales account for 50% of total sales by fiscal 2025. they are almost there, right now online sales account for 40% of total sales. interestingly, the ceo of nike used to be the ceo of ebay, so he has experience in this field and some short-term factors that will lead to stock price gains at nike, the world cup, the beijing winter olympics -- nike has extensive ponds or ships of athlete -- sponsorships of athletes and it is considering raising the price of products to offset higher freight costs and mitigate logistics price increases. tom: laura wright on those nike earnings. let's switch focus to turkey. turkish lira is whip soaring today. stating its biggest rally since the 1980's. the jump came after president erdogan announced new measures to bolster the currency. joining me to discuss is our amsterdam bureau chief. what are the measures that president erdogan announced last night? what do they mean in practice? >> hi, so president erdogan announced a series of meas

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morgan stanley. a great call beneath the surface.e single named calls as well. >> one thing that so important as you read the people opposite the calls on the street. if you are bullish i'm reading morgan stanley. on china, enda curran joins us now. i do not know where to begin this discussion. what is a single thing mr. xi jinping is worried about domestically? >> the effectiveness of china vaccines. the report out of hong kong university saying basically their effectiveness against the omicron variant is pretty low. if that's the case that will certainly pressure china's strategy. it will surely suggest more disruption. consumers consumption is weak because of that. i think the variant holds up against vaccine will probably the biggest concern. we have more data pointing at the property sector. the depth and leverage story. lisa: we focus on china as is the world's second-biggest economy. some of the disruptions we've seen, it's a huge generator of economic wealth over the past couple of decades. how concerned is the people's bank

guy: morgan stanley and citi think not, they think it is an overreaction.ooking at the situation saying, these are the obvious stocks to sell. incredible turbulence this year. the sector has been up 25% year-to-date, and now it is down 11%. the market is trying to discriminate after indiscriminately selling from the get go. it is trying to figure out who will be affected, maybe the long haul carriers. then we will start to see the short haul carriers affected. the ceo of easyjet was optimistic, but if you are trying to fly the atlantic, the risk is it gets shut down. that is the fear for the likes of iag and virgin atlantic. dani: it sounds like flights are not stopping yet, one is going off behind you. what could happen next with travel restrictions and precautionary lockdowns. ? guy: that is what everybody is trying to figure out. the big surprise this time as we have seen governments reacting as quickly as they have. we went to the first few waves of covid, what we saw with governments imposing travel restrictions, and the u.s., when they imposed them st

kailey: almost 20% from what morgan stanley sees.sting to see the divergence even though a lot of the calls are the same. morgan stanley has now pushed forward when the inflation call comes. but we will still be looking good for the most part. the fed will normalize. where that leaves equity market is a mixed bag. jonathan: right now it is positive. joining us now, andy blocker, head of u.s. government affairs at invesco. he said it would be the nightmare before christmas. are we avoiding that? andy: i think we are on the path to doing that. a month ago, i would have said it was the nightmare before christmas, he has increased the debt limit, get the bipartisan infrastructure bill, and at the same time, get the bill back at her bill. we have gone that bipartisan infrastructure bill. we have agreed to fund the government, at least until next february, and now we have a deal on the debt limit, one of the most important things with respect to the market. we are in a path, now we will see how we get bill back better done. lisa: if we do

morgan stanley liked nike's move to a direct co-consumer business. goal is for online sales to account for 50%. right now they account for 40%. the c.e.o., formerly c.e.o. of ebay, he has experience in this field. some things that might contribute to short-term share price gains for nike is the beijing olympic, the world cup, nike extensively sponsor athlete which is helps them gain market share and also permeate in new markets. dani: laura, thank you so much. let's stick with earnings in the supply chain theme but from sports apparel to chips. micron reported an upbeat forecast. let's get details with our bloomberg intelligence tech analyst matt. another very strong earnings coming out from micron. strong demands last area and earlier in the year the the question had been how long can this list? what's been the sustaining drivers for demand we're seeing at micron? >> hi. that's still growing, you have the cloud, that's going to continue to stay in demand. they've been expanding into a number of different arias. p.c. market is strong for them though

features, that's going to give them a big boost to their immune system is going to protect the morgan stanley quantum to hopefully against the variance as well. so i'm really hoping that this, this wave could be a form of natural vaccination health analyst john campbell, speaking to us a little earlier. that's 10 now to some other stories making headlines around the world. the philippines disaster agency says the death toll from typhoon roy has risen to at least 80 people with officials warning many people remain missing. the storm swept across the country on friday, leaving a trail of destruction and forcing 300000 people to evacuate. it's been called one of the most powerful storms to hit the philippines in recent years. you case brakes . it minister david frost has resigned due to disillusionment with prime minister barak johnston's government. it comes on for disastrous week for the prime minister with a bi election defeat and rebellion from his own. m. p. 's over the introduction of additional covert restrictions in hong kong polls have opened in the 1st parliamentary elections since the