mentioned, i briefly we saw that in 1975 moynihan hard.e got more votes than were expected against the resolution though the resolution passed. said, you're not being diplomatic. tone down. he said, what is this toning down? i'm supposed to tone down when fighting a lie? he says being diplomatic doesn't appeasing. he said being diplomatic sometimes means being tough, yourimes standing up to adversaries. he stood tall and made an impacts. in 1991, it led to the first time in u.n. resolution was side tabled. it wasn't formally -- rescinded side-tabled because of effective leadership and, pull back our camera, remember our favorite text? context, fall of the soviet union. changed.namics we have no choice but to be there, to fight. when i say we, i mean a big of people whon care about human rights, care about democracy, care about the ideals. its founding we have to hope and pray that we have enough leadership and luck advantage of the changing world to push the u.n. to be what it should be and it often isn'tat yes, sir? >> with a pun intended

brian moynihan is speaking right now.u the initial comments he has made here, he talked about the economy achieving growth against the backdrop of a slow-growth u.s. economy. bank of america did see an increase of 42% in profit year-over-year, although revenue did this profits. he said the bank has been winning customers from the competition, but he is emphasizing expense reduction at the bank. he said they had a record slow net charge-off rate. that is something he has been trumpeting. he said the rate increase that we saw last year from the federal reserve was too late in the fourth quarter to benefit his net interest income. the bank should see an increase in that measure of $600 million in the first quarter of this year. now, for some of the highlights from the media call, paulson off real conducted the call, and talked about the interest -- increased in the first quarter. as for what was behind the shortfall in revenue, he talked about trading activity, particularly in fixed income currencies and commodities slowing

erikthat was bloomberg's schatzker with bank of america ceo brian moynihan in davos.carlet: it is time for the bloomberg business flash. u.s. regulators have officially filed suit against qualcomm in a san jose court for allegedly using unfair practices to license its technology. the fcc says those prices caused higher cell phone -- ftc says those prices cause higher cell phone prices. qualcomm is the world's largest maker of semi conductors and makes most of its product for technology licensing. try to put an exact figure on how much is owed by the world's largest company -- richest company. eu competition watchdogs ordered island to clawback $14 billion plus in unpaid taxes. apple and island both appealed and missed the january 3 deadline, but apple says the eu is satisfied with progress so far. digital ink has reached a judgment with the u.s. department of justice -- deutsche bank has reached an agreement with the u.s. department of justice, agreeing to pay 7.2 billion dollars, and agree to misleading investors. in a statement released in the past hour, deutsche ba

that of theext, context that started, moynihan called it the big red lie. you want to use the uglies weren't word in the international vocabulary and that is racism. ,here is a national conflict you see the worst racism always used. apartheid--this ugly analogy. and lies about colonialism. what kind of empire is this? do you want to criticize the settlements? fine. when we see the role of the united states and we see how as a result of those moments, those bonding moments, jimmy carter comes in and despite the issues he had, they negotiate the peace treaty. they want to throw that him l.a. pass.- hail mary carter, and comes ronald reagan. one of the things we start seeing is the pattern with eisenhower. bush.eagan and george w. with george h.w. bush, relationships are a little rocky and bond and become clear as reagan saw how important israel was in defending the west and defending democratic values and defending america. what we see with george h.w. bush is that he is most famous wit israel overlong guarantees. we forget that in 1991, george h.w. bush had

bank of america ceo brian moynihan is going to join us. also, marc benioff.. steve liesman is going to have an exclusive exit interview with treasury secretary jack lew. that's coming up later today at 10:10 exactly, eastern time. stay tuned. you're watching "squawk box" here on cnbc. your path to retirement may not always be clear. but at t. rowe price, we can help guide your retirement savings. so wherever your retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence. >>> welcome back to "squawk box." we're continuing our live coverage this morning. we're in davos, switzerland, with the head of one of the most talked about companies in the tech space today, salesforce.com. it's coming off a record acquisition year, spending nearly $5 billion. stock up 11% just from the beginning of the year. marc benioff is here, chairman and ceo. what are we attributing this stock performance to? >> i think last year was not our banner year in the stock. we had a great year last year from the performance

here's brian moynihan, ceo of bank of america, talking about rate increases and the way that will play17. >> these rate increases were late in the quarter. they didn't benefit the fourth quarter number, that's significant. but we look forward to first quarter '17 when expect increase all things remain equal by approximately $600 million per quarter despite having two less days in that first quarter. >> on the fourth quarter itself, j.p. morgan comfortably beat bank of america in trading revenue. having just spoken as i said to j.p. morgan's cfo marion lake, she said the trading performance was, quote, pretty broad across products and throughout the quarter, combination of affirming growth globally as well as notable political events during the quarter. jamie dimon was also on that call and on president-elect trump's appointments he said, he is putting real professionals in the field. mnuchin is talented. ross is talented. tillerson is talented. give them time and they will do the right thing for america. he also suggested he was as bullish as he was around about a month ago. he's not b

>>haaziq m: an emergency job moynihan says mark of reuter he said the tree root was so deep inside himte a home in the pipe to pull the root out of the emergency work was necessary because of houses the subject to flooding in bathtub during the storm he would rather install permanent fix what state of the our pipe however the important the rain will not back and cause flooding in the neighborhood. >>pam m: this storm is expected to head over the weekend >>reporter: once it starts is going to turn heavy overnight into the early-morning hours as we get into saturday night sunday most of sunday morning and a sunday afternoon a closer look hamas rain we expect to see only about and to start but as we get into sunday when the heaviest rain comes down that is on the rainfall total picks up and you expect to see closer. >>steve: would say how this man made history when he was appointed to the board of supervisors u.s. intelligence officials reveal new details about having a the president to election. >>pam m: little girl was in the car with her mother near 65th and out luxury that is where th

brian moynihan discussed how the incoming administration could change the game.m for change at bank of america and among our customers is probable -- palpable. we are optimistic. in the interim, we will continue to operate the company by controlling and driving what we can. mark: an investigation found there was no single trigger to last fall's flash crash in the british pound. on october 6, sterling fell more than 6% against the dollar. the bank of international settlements says the time of day of staff experience as possible reasons. and the nintendo's new switch gaming console will go on sale march 3 at a price at $300. that is higher than rival consoles. investors are not convinced the switch will be a big hit for nintendo after a presentation in tokyo. company shares fell almost 6%. -- boeing's order for spicejet is worth $22 billion in list prices, though discounts are usually given for large purchases. it is the largest order placed by an indian airline for boeing jets. vonnie: time for our bloomberg could take, where you find context and background on iss

that is brian moynihan, chief executive officer of bank of america.ll need to find a pool of molten lava to jump into after sitting here 15 minutes. mark: erik schatzker in dallas. ahead. be back in davos this is bloomberg. ♪ mark: live from london, i am mark barton. julie: and from new york, i am julie hyman. mark: it was a day of decline. the clients were not to the extent that they were earlier in the day after theresa may's brexit speech. strong pound, weak ftse, it has been the opposite in recent days. record winning stretch came to an end yesterday. the second day of declines. 0.7%toxx 600 was down by ahead of brexit. a quick look at the pound. look at that game. against thegain dollar since 2008. julie: let's go back to the world economic forum in davos, switzerland. erik schatzker fresh from his dip in malta model, hopefully. of the aechairman systems, roger martyn carr. you are the chairman of europe's , bae.t defense contractor tell me what you heard from theresa may today? >> i think we had a good message. i think the tone was right, friend

moynihan says this is what responsible growth is all about.e's applauding the eps growth at 15%, without the need for too much revenue growth. i'll dive down into the numbers and come back with more in a second. >> we'll continue that conversation on bank of america in a moment. also bank of america's ceo, brian moynihan, will join us in davos on tuesday morning. our davos coverage begins tuesday, 6:00 a.m. eastern time. we'll be doing shows there on tuesday morning, on wednesday morning. the wex crowd will be there the whom time, and then thursday we head off to d.c. for the inauguration. >> can i -- do we have time to ask eunice a question? are we just learning here that both sides can negotiate from extreme positions? do you think that ultimately the relationship between the u.s. and china is so he important that all this crazy rhetoric out there, cooler heads prevail? >> i -- i think that it's really important. because if you look at china going out, where is all the business going to be for u.s. companies? it's not going to be in russia i

you can't find a daniel patrick moynihan. you can't find a nathan glazer, intellectual powerhouses.y're mostly to corporate, or think tank or left ideological nonsense and in business they fall in lock step with the chamber of commerce, the business round table, often the g.o.p. establishment, although that seems to be, maybe some change in the air there, it's good to see. the intellectual elites donald trump as a candidate defined the issues for the working family, to the middle class itself. i want to turn to enrique peaiea pena-nie pena-nieto, and he's there with the cartels the most violent in the world and there had as been no declaration of assistance from the state department of any president to this point. there has been no concern on the part of the business round table, corporate america, the chambers of commerce about human rights, even though they're being violated daily in mexico. and gruesomely so in many cases. i mean, this is quite a change for president trump to stand up and say, look, things are going to change here. >> well, and i just think it's kind of silly whe

patrick moynihan said we're putting children to the sword, they'd be sleeping on grates and other people would say, well, the parents are working. it's going to be a positive role model and a good thing for kids. but despite those predictions, there was absolutely no content in the debate over welfare reform that was focused on kids at all. it was all focused on labor supply and if you think about a few years ago and debating cutting food stamps. i think this time when we talk about the safety net changes that we'll be making in light of tax cuts, all the rhetoric is going to be around hammocks and lazy parents and nothing is going to be about potential consequences for kids. >> i think what you're going to hear in that debate too is what you always hear. it's been a complete failure, hasn't gotten rid of poverty, high as it ever was. so how do we take the evidence that these have long important effects and counter that the war on poverty has been a failure? >> i don't think there's evidence of that. if you look at what happens after you do the transfers, i think the point of the transfe

we'll talk with arnie sorenson, brian moynihan, david cody, marc benioff, matt damon and many, many more before we jump into that, let's check the markets and see what's been happening. the dow has been moving further away from that 20,000 point level. u.s. equity futures are under

you, moynihan, do something about it, even if it takes you 30 years. but that too. here comes the extended trump family. out to the reviewing stand. including ivanka and her husband jared kushner. >> why do i think of the rome novembers? >> there's an aspect here. i mean, this extended family, they're all attractive, of course, and just we're getting to know all of them so quickly. >> well, it's a big family. and it spans a lot of years. >> distributed. >> reporter: children from three different marriages, ten-year-old, also sons who are, you know, in their early 40s. >> investing his family with authority. i mean, who's going to argue with him in the government? who's going to take that position? >> and who's going to challenge the potential violation of the nepotism law? >> it's pretty clear. >> a president cannot hire a regulartive, including a son-in-law. >> when your father-in-law says about you on the eve of the inauguration if you can't get to mideast peace, no one can. >> well one of the moves they're making is not a way toward middle east peace which is mov

there was daniel patrick moynihan would say we putting children to the sword, and then other people would say well, but the parents are working, it's going to be a positive role model, it's going to be a good thing for kids. but despite those predictions there was absolutely no content in the debate over welfare reform that was focused on kids at all. it was all focused on labor supply. if you think about a few years ago debating cutting food stamps, i predict this time only think about the safety net changes will be making in light of tax cuts, all the rhetoric is going to be around hammocks and lazy parents, and nothing is going to be about potential consequences for kids spin i think what you're going to hear in that debate, the war has been a complete failure. it hasn't got rid of poverty. poverty is as high as it ever was. how do we take this evidence that these things have long run effects? you counter that, the war on poverty has been a failure? >> i don't think there's evidence the war on poverty has been a failure. if you take into account what happens after you do the transfer,

i don't know if you remember the late daniel patrick moynihan who said, everyone is entitled to his orto his or her own facts. we have facts alleged facts given to us, leaked to the washington post and "the new york times," by third parties. if the intelligence agencies have facts that the russians did this, then let us see it. then we will decide. let me add one thing. there's a group of former intelligence officials -- i may get the name of the group wrong, but i think it's something like veteran intelligence officials for sanity. they have concluded -- i'mot sang this is so. t thav concluded that this was not a hack a all but a leak. the difference between a hack and a leak is what snowden did was a leak. somebody inside took the information and disseminated it. if it was a leak, it had nothing to do with russia. why isn't that being discussed or investigated? these are responsible former intelligence officials. keep in mind, that if we're going to race ahead with sanctions and other harsh -- john mccain is advocating harsher -- >> i want to ask about you that. >> without facts -- >

he came into office, he was very much feared and opposed by the democratic establishment and pat moynihanho was later to become a u.s. senator, was one of his advisers and said that nixon tried very hard in his first nine months in office, to be a good president, tried to reach out to everybody, and got no credit for it. by not getting that credit he was hurt and bruised and turned him down towards his darker impulses. so that's maybe something we might want to remember as new president comes in, that yes if you have philosophical and partisan differences with him, you should oppose him, but that constant wearing down may cause donald trump to decide what's he got to lose. >> i should have phrased the question differently. this is different than a shift in policy. we've seen a shift between conservative and liberal presidents before, but this is a president-elect like none other that we've seen, so there's an added factor on top of that. >> there is, indeed. as doug mentioned, this is a man who comes to office who is breaking the norms. he knows he's doing it and happy to do it. these are

. >> it may be donald trump's washington that daniel patrick moynihan was wrong, that you are entitledo your own facts, not just your opinions, because in the first five days we've seen this. there is no fact to back up this voter fraud. listen to the republicans, what jason said, the idea that the media created the feud with the intelligence community, the cia on saturday, you know, these are not factual statements or positions but perhaps in trump's washington, these lines will still be -- >> let me let phil button this up for us. go ahead. >> let's be clear, this is why people like me who aren't political analysts can't stand republicans or democrats. the president of the united states, president obama, had an opportunity which every president has to nominate a supreme court justice and the republicans said no. now the two kids will kick sand in each other's face where is the republicans say we want to nominate somebody and the democrats will say we say no. people like me who don't do politics, get them all out. we've had it with this stuff. >> nice button-up from phil mudd. stand b

. >> pat moynihan used to say you're entitled to your own opinions but not your own facts. the spokesperson has a lot of different audience, he has the president, the white house and the american people. people need to trust what he is saying is a fact and has been verified, and even though every administration tries to create their own narrative -- >> yeah, let's be clear about that. >> because you mention, chris, in a national disaster, that spokesperson is speaking for the nation. he's not just speaking for the president. >> right. michael steel and rick stengel, thank you for your time. appreciate it. still ahead, the first day of donald trump's presidency was met with record-breaking protest across the country and around the world. we have people here you do not want to miss. hours after michael flynn is sworn in as national security adviser, news he has been under investigation for contact with russian officials. that story is after this two-minute break. >>> and i will well and faithfully discharge the duties of the office on which i am about to enter. >> the duties

david: another story building as we speak, brian moynihan is speaking about the lamarcus at a councilnew york. he is saying we will get through post-brexit changes. the banks need time to adapt to what is happening with brexit. davos, when he was at everyone was looking for clarity on the politics, but there has not been much clarity. we got there it will have uncertainty last year in politics and we do all right in the end. we talked about that as well.the regional banks as well . the smaller guys, that could be hugely incremental to them. jonathan: confidence numbers, he wants to know whether they want more loans and to make more deals. david: exactly. talking with midsize companies saying, do you want to borrow more money? alix: all of that if it's on the growth. on in duringn weighed the last hour. >> if we get enough fiscal stimulus, we can get to 4% growth. whether we can sustain 4% growth, whether they will be a payback at some later stage is another question altogether, which they're almost certainly would be a payback, but can you get 4% growth in a years time if you have a 2

moynihan beyond the governance issues? michael: it does seem to be past the worst of it. he had some questions a few years ago as well, when they were needing to raise and capital. it seems like it is a profitability question at this point. tom: what did they want to be? did they want to be the bnp paribas of america? did they want to be the retail giant? how did they compete with the headstart jamie dimon has? michael: i think they want to be a monolith on the retail side. they have fewer products but they want to be simpler, more streamlined, more digital. so a lower cost model on the retail side. on the investment banking side, they want more conductivity between the investment bank that they want more connectivity -- they want more conductivity. thingse: one of the analysts are looking out for and reporters are any signs of job cuts. for the moment, we do not have any more details. it can take a lot of time to come through. america where of rising slightly before the big release. buyback bye stock $1.8 billion. tom: i

politician daniel patrick moynihan that said, quote, everyone is entitled to his own opinion but not his own facts. kellyanne conway also spoke today on the issue of trump's tax returns. first saying simply that he will not release those tax returns. later, eugene, walking that back slightly with our jeff zeleny, saying that as long as trump is under an audit, he wouldn't release the tax returns. they argue that people don't care about this issue, but the latest polls suggest otherwise. >> reporter: that is true. there are actually multiple polls, including one that cnn did, that show that more than 70% of americans do care about the tax returns. they want to know whether or not the president has conflicts of interrelated to international affairs and business because they are concerned that it could influence its policy. a big problem with what conway said is that voters didn't care. even voters who voted for donald trump, which we know is not the majority of people who voted, have expressed concern. 50% of republicans would like to see the tax returns to ensure transparency. that's

>> that old daniel patrick moynihan expression that you are entitled to your own opinions but not entitled to your own set of facts that is out the window if in fact you hear sean spicer say he can disagree with the facts or bring his own facts or as kellyanne conway called hem alternate facts. we are still in a world where we are not going to be able to disagree on certain facts and from there be able to ask questions and get answers for the american people. him stating his intention is to always speak honestly that is a good baseline to have. so i think sean spicer was successful today at turning down the temperature. he didn't come out there with a hillary clinton style reset button, but i think there was a bit of a reset moment for sean spicer and for the trump white house there. and on the news front, i do want to under score asking david said i think is really important on d daka and dreamers. intense donald trump said in that interview with "time" magazine when he became person of the year, they have been dialing this back. he said several times this is not the prifrt,s in not the f

remember when bill clinton came in and senator moynihan pushed back.hat's really nice. >> nice to see you, young man. you're going to be gone after four years. i'm here for a long time. nothing new about congress pushing back even a member of their own party who is president saying we have a lot of information. we have a lot of institutional knowledge. maybe you should listen to us and the new president saying, no, i was elected to push back on people like you. you are part of the problem. that to me is a natural and healthy tension there. the question that's going to occur afterward is, or throughout.presidency or the beginnings of this presidency is just how long these tensions are going to go and who else is going to be part of this? we know graham and mccain on security issues are going to be here. what about when we get to economic issues? what about foreign policy? what about when we get to entitlements? where are we going to see the party moving? >> trade, immigration, you go through a long list. the election gave us the president but did not se

ryan moynihan butchering the conversation coming out. deborah byers is with us this morning to talk about plans to really tap into the energy sector. senior judicial analyst judge andrew napolitano is here. sean duffy will join us in reagan budget director david stockman. don't miss a moment of it. a big show. stay right there. president trump will visit the department of homeland security today to sign executive orders which will enable construction of the border wall he said from his personal account. big dan national security tomorrow. among other things, we will know about paul. former chairman of the house intelligence committee and the tenant colonel, alan weiss, former florida congressman and fox news contributor. good to see you. kick us off here. your reaction to the move to build a wall. >> well, i mean this is a president who's absolutely keeping its promises. he's doing exactly what he said he would do what needs doing it very quickly. this will be fascinating to watch. something is going to break. donald trump is moving and

i think brian moynihan's point of view is incorrect.on't think that the whole game and think it should be to buy back stock and increase dividends because all that does is increase capitalreducing cape ability of the banks to grow. 75% to 80% of the banks that i thought in terms of fourth-quarter earnings showed this big earnings increases but the net worth went down in the net worth went down because interest rates went up so much it is killing the value of the securities portfolios. it is not incumbent upon these guys to go and pay dividend and buyback stock. it's incumbent to do with jamie timon said, which is invest in the future, invest in all of these opportunities which i'm convcedf sitting in front of them right now. maria: would you buy the banks of these levels after the huge run-up we've seen? >> yes. 75% of the stocks i follow i have? >> yes. 75% of the stocks i follow i have higher recommendations because i believe in the trump economic program and i believe what it will do for the banking industry. maria: good to see you.

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

then ambassador daniel patrick moynihan said if there was no general assembly, this could never happen. so you're taking on a challenge here to reform a u.n. that has been unreformable. do you have a game plan for doing so? >> it is what i have done all my life. i love to fix things. and i see a u.n. that can absolutely be fixed. there are reforms that need to be taken place in a lot of different areas. there are things that the u.n. does well, and we talked about the food and health organizations, what they've done with the aids epidemic, all those things have been very good. but we do have to look at certain issues. if you look at we have 16 peacekeeping operations. some are very successful. some are not. and we need to go back and look at when we get into a mission, what is the end goal. it is happening? do we need to shift and do things differently, or do we need to pull out? you look at sierra leone and you see it started off rocky but ended up very strong. if we look at south sudan, it's terrible. but you also have to look that we're not getting cooperation from their own governm

. >> bank of america ceo brian moynihan and jp morgan ceo jamie dimon. be sure to watch. tyler? >> thank you very much, melissa. >>> up next, we're going to talk harry potter, calvin klein and north face jackets. the good, the bad and the ugly in today's trade when "power lunch" returns. t ca yily re gohebr >>> upgrade to buy at deutsche bank, 1.23%. the bad vf corp, downgrade from canicord, expressing concerns over the north face brand. another supplier to the retailers is where it's ugly, pvh, manufacturer behind names like calvin klein and tommy hilfiger. off by nearly 4%. perhaps in light of what we saw in retail sales that we talked about earlier, tyler? >> michelle, thank you very much. buffett's big bet on ibm, close to making money on his investment. should you be taking a closer look at this dow outperformer? it had a good 2016. look at the one-year, 27% up. and the right versus the right. the adjustment or border adjustment tax causing a rift within the gop. michelle just wrote about it. we're going to talk about it, because we can't talk about it enough. border adjust

. >>> be sure to catch our interview with brian moynihan on tuesday morning on "squawk box" and then.p. morgan chase -- chief jamie diamond will be on squawk on the streets. they'll be live in davos, switzerland, where the temperature will be hovering around zero grease fahrenheit. >> it's the coldest thing. >> it is friday before a three-day weekend, isn't it? you can hear it in the air. time now for cnbc news update from sue herera. >> i could never tell, bill. yeah. here's what's happening this hour, everybody. the house debating a budget which will begin the process of repealing obamacare. a step already taken by the senate. house speaker paul ryan promising that no one will have the rug pulled out from under them if the gop repeals the health care act. >> the law is collapsing. the insurers are pulling out. people can't afford it. the deductibles are so high it doesn't even feel like you have insurance in the first place. this is a rescue mission. this is a necessary move. >> flu cases continue to climb across the united states. the cdc reporting that 21 states have widespread f

>> well, i went to the united nations right after senator moynihan had been involved in the whole businesssm as racism. i was one of the first by and i got most of the african and caribbean delegate to realize that this is not something in their interest. it wasn't something that they wanted. it was something that could very easily ignore. i never had -- i never had a bad vote on israel the entire time i was there. but i talked to everybody. we have to realize that israel had visited in 1966 was ben gurry on and shimon peres and much or diane is complete the different than the israel that exists now. you had new waves of migrants coming in and they are coming in from places where they have been persecuted. so they feel very, very insecure. that doesn't mean that we can't find a solution manner. neil: all right. if you don't mind my switching gears a little bit with the dustup about these democratic congressmen and women who are opting out of the trump inauguration. 64 by latest count. would he think of that? >> well, i think that democracy is difficult. it has its messes that covered that

moynihan,d to brian and he is seeing it in the private companies.ls. you don't necessarily see that reported. >> we have shown this chart on small businesses. you create a bit more of a financial transition, a bit more on the tax side or on the regulation. businesses are where you have to do it. we think that is really powerful, may be a bit of loosening the regulation banks. it can create a bit of a more velocity into those types of companies. a pretty good tailwind for a couple of months. >> great to have you with us on the program. 26 met -- 26 minutes into the session. here's your market share. growth and an upside surprise coming in hard. .ields our coverage continues on bloomberg. happy friday. ♪ mark: welcome to bloomberg markets. vonnie: lots to get to from digesting the jobs data to president elect trump and moves in the yuan. more eco-data to break. upable goods, transportation .6%. factory orders were down, down a little bit more than estimated. good,ent data has been but the actual hard data has been very weak in the last number of month

i talked to brian moynihan, and he said if you reserve -- increase reserve, you could freedom up to lendtion of how much lending capacity we want to expand -- do we want to thousand six and 2007 again? again? and 2007 the last two years, it is not bad -- lending has not been a major impediment to growth, unless you want really rapid re-leveraging. alix: looking at the space, which bank's best poised to take advantage of this kind of opportunity? fred: the number, number one, this is a global trade going on. it is a reflation trade. the banks in europe and japan have gone up as much as the u.s. banks. a lot of these things, if you want to play value in banks, you should look at europe and possibilities there. that said, our topic is bank of america. you don't have the overhang of wells fargo. q should get benefit from -- you should get benefit from higher interest rates and benefits from less regulatory touch. jonathan: you don't get to leave after mentioning european banks and not taking one. start with the country. would you go? fred: well, we're not quite going to germany, so we can go

maria: and point bank of america, we had the ceo on today, brian moynihan and people are spending more. loan demand is up, businesses are also inquiring about doing more, he's looking at spending up and he had a pretty good prediction for 2017, b of a up 36% since the election adding to moves today. stuart: you know, you just don't see these kind of moves very often, do you? november the 8th was the election and we're now 1600 points higher for the dow industrials, and these bank stocks have gone to the moon. >> the bank stocks led the way and the dow is weighted a certain way. goldman sachs has an over, overwhelming influence on the dow. and because these big banks have done so well under the notion that we're going to either get rid of dodd frank or make it work for everyone, they have been the big leaders, they've been really the ones who let the dow, particularly, much higher. >> do you think we're going to get a wealth effect. when the stock market goes straight up. people look at ira's, 401(k)'s and feel wealthier and to buy. maria: it dictates behavior. that's what alan greenspa

. >> i don't understand whether it's brian moynihan or jamie dimon or lloyd blankfein wo cho come on said this, you think they're plaflat out wrong and dt understand their own business? >> yes. that's a strong statement. they're definitely correct that a rize se in interest rates wil lead to a rise in earnings, no doubt about that. but will the banks hold on to those earnings. if you look at the balance sheets, they won't. why don't they? banks have huge portfolios of financial assets. those financial assets go down in value as interest rates go up. in the fourth quarter what we saw was a big increase in earnings in the banking industry, partly due to the increase in interest rates, but every one of the big banks saw a decline in the common equity. why? because their financial assets dropped precipitously in value. in other words, you have a big piggie bank. in that piggie bank you're throwing in all this money coming from the higher interest rates. the problem is that piggie bank has a huge hole in the bottom. and you are losing that money because it's flowing out as the financial a

ambassador daniel patrick moynihan came to the unsettling realization that as he put it, quote, if there were no general assembly, this could never have happened. today, over 40 years later, more and more americans are becoming convinced by actions like the passage of resolution 2334 that the united nations does more harm than good. the american people see the u.n.'s mistreatment of israel, its failure to prevent the north korean nuclear threat, its waste and corruption and they are fed up. my job, our job, is to reform the u.n. in ways that will rebuild the confidence of the american people. we must build an international institution that honors america's commitment to freedom, democracy, and human rights. i hope this can be done. i believe it is possible. and i know that if you confirm me, i will do all i can to see that that happens. some say we live in cynical and distrustful times. but i believe we all carry in our hearts a bit of idealism that animated the creation of the united nations. i know i do. with your blessing, i will represent our great country in this international forum

without any mental reservation or purpose of reservation "moynihan's moment: america's fight against zionism as racism --. and that i will well and faithfully discharge. the duties of the office upon which i am about to begin. so help me god. pence: congratulations. [applause] vp pence: thank you all. we are going to travel over to the white house. the president wanted to greet our new ambassador and congratulate her. thank you, everyone. announcer: house and senate republicans continue their three-day retreat in philadelphia. speaking trump will be at a lunch tomorrow and later, british prime minister theresa may will address the group. during prime minister's question time, she answered questions from opposition leader jeremy corbyn about meeting with president trump while in the united states. >> with the prime minister also take this opportunity today to congratulate the 100,000 people who marched in britain last weekend to highlight women's rights after president trump's inauguration and expressed their