auto financing is the new subprime, there's just been a ton of money available for people to both lease and buy. >> it's going to get weaker in 2014? >> i think it's not that important. because the actual driver of these stocks is international growth. no one is looking at america as though it's the 1950s again. but when you look at potential in places like china, southeast asia, you look at africa, that's what is going to drive these stocks over the next five to ten years. so on a short term basis, i think tim is right. i think we're making too much of one month. and you really have to look at at least a 90 day average. but longer term, think about what gm and ford could do on the other six continents. >> global motors. >> let's get today's top trades now. yahoo gets a price target hike to 40 bucks -- from 40 to 49 reiterating buyer rating, it's a bullish plan, ali baba's expected ipo a 24% steak in. >> this is simple as some of the parts math. and yahoo keeps getting pulled up. if you value ali baba, if you value yahoo japan you get to a place all these parts not including yahoo's cor

new mortgage rules. the housing market is starting to recover from the subprime crash. why do you think these rules are going to help the market as opposed to hurt it and limits mortgages? , a couple of things, -- >> a , the samethings things our community banks and credit unions have been doing for a long time, making sure there they lend money person borrowing the money will be able to repay it. they're not being set up to fail, they are being set up to succeed. it was not the norm in the mortgage market in the last decade. place, that back into some of this cleaned up after the crisis because some of the bad loans cannot be made. we want to make sure the framework does not allow us to get into the same kind of problem again. the biggest thing is the access long before rules to credit.to just -- long before the rules came along -- we did take account of that. to provide rule safeguards for mortgages that are being offered in the marketplace today and we included special exemptions for community banks and credit unions to continue the kind of lending we think have been

subprime crisis of 2014. >> tom keene joins us from new york with a preview of "surveillance."this morning. and thethe fed decision, you see the reaction in the emerging markets. the idea of the immediacy of the crisis in the emerging markets. robert will join us from pierpont securities. for years, he was with bank of america. in the next hour, ken on a really interesting quarter for facebook. we will focus on google and one novo and the positive deal that as theyfor google jettisoned motorola over to one novo. -- over to lenovo. we will move on to discuss the super bowl as well. >> we spoke to a lenovo executive in davos. little flaketting a from the emerging market today, saying they are only thinking of the u.s. is there a thinking that with stanley fischer on board they will take a more global -- look more at the international scene? >> he will give them perspective on the previous crises and the distinction between this pending crisis and what he witnessed in 1997. no, i do not think vice chairman stanley fischer will have an impact on chairman yellen and the other presid

only treat the new record high for the city but also to keep the international high of eleven point five month into it. the previous rector was printed out and that meant that for the subprime mortgage crisis. currently hong kong housing prices have doubled in two thousand i was mainly due to strong market demand from you and how producers and the heat low mortgage rate. market experts worry that these elements would continue to create bubbles in hong kong through the market. finally from china business news the advertising revenue for the spring couple gonna appear to be very high that you are looking for a couple gallons a tradition for tiny keep on new year's eve. in august of last year the chinese physician and now conducting the case the local station decreed that i perform the evening party. older cars. it was well known as the hunt for correction for the spring gala attract alot of attention. because the advertising revenue from the spring couple gala would hike the two hundred million us. ninety nine million dollars this year. chinese media release. because the dollar was lower the cost of any party held by a local station. but the advertising revenues are very high

new home loans are still rare in the fourth quarter the nation's biggest mortgage lender wells fargo extended fifty billion dollars in mortgages down sixty percent from last year now banks hit by big losses on subprime loans are now more weary of taking on risk and they're also uneasy about exposing themselves to litigation related to any questionable mortgages some bankers say the money out the door is more challenging today as they now must navigate new mortgage rules set up in response to the crisis and while new mortgage rules very easy to make loans safer for borrowers that banks have deterred from making loans to those with less than perfect credit. and finally well the federal reserve has taken steps to restrict banking activities in the physical commodities markets such as aluminum and oil it is stopped short of actually introducing those new rules now the fed says it's been studying the issue for two years two full years and they want to examine all aspects of banks own commodity businesses including quote potential conflicts of interest now officials are now giving banks the chance to weigh in on how to regulate themselves pretty nice you get to weigh in on how to make your own rules banks

new home loans are still rare in the fourth quarter the nation's biggest mortgage lender wells fargo extended fifty billion dollars in mortgages down sixty percent from last year now banks hit by big losses on subprime loans are now more weary of taking on risk and they're also uneasy about exposing themselves to litigation related to any questionable mortgages some bankers say the money out the door is more challenging today as they now must navigate new mortgage rules set up in response to the crisis and while new mortgage rules very easy to make loans safer for borrowers and banks have deterred from making loans to those with less than perfect credit. and finally well the federal reserve has taken steps to restrict banking activities in the physical commodities markets such as aluminum and oil it is stopped short of actually introducing those new rules now the fed says it's been studying the issue for two years two full years and they want to examine all aspects of banks own commodity businesses including quote potential conflicts of interest now officials are now giving banks the chance to weigh in on how to regulate themselves pretty nice you get to weigh in on how to make your own rules banks

new home loans are still rare in the fourth quarter the nation's biggest mortgage lender wells fargo extended fifty billion dollars in mortgages down sixty percent from last year now banks hit by big losses on subprime loans are now more weary of taking on risk and they're also uneasy about exposing themselves to litigation related to any questionable mortgages some bankers say the money out the door is more challenging today as they now must navigate new mortgage rules set up in response to the crisis and while new mortgage rules very easy to make loans safer for borrowers that banks have deterred from making loans to those with less than perfect credit. and finally well the federal reserve has taken steps to restrict banking activities in the physical commodities markets such as aluminum and oil it is stopped short of actually introducing those new rules now the fed says it's been studying the issue for two years two full years and they want to examine all aspects of banks own commodity businesses including quote potential conflicts of interest now officials are now giving banks the chance to weigh in on how to regulate themselves pretty nice you get to weigh in on how to make your own rules banks

new mortgage rules. the housing market is finally starting to recover from the subprime crash. do you think these rules are going to help the market as opposed to hurt its? >> first of all the rules are only a back to basis of mortgage lending and mortgage servicing. it's the same thing at credit unions have been doing for a long time, making sure that before they lend money the person borrowing the money will be able to repay it so they are not being set up to fail. that is speaking -- that is basic thinking 101. putting that back in the place, some of the cleaned up after the crisis because the markets crash and some of the bad ones cannot be made. we want to make sure the framework in place doesn't allow us to get into the same kind of problem again. the biggest thing that has constricted access to credit and the last date -- last decade was the financial crash of 2008. tight as ame very result. we did take account of that. --drew our role to provide our rule to provide safeguards for mortgages. we included a special exemptions for community banks and credit unions to contin

new banking rules that they have to implement political goals, political agendas? >> there is no question that is a risk and has happened in the past. i mean if you look at subprimef the big reasons that banks made some subprime loans is the federal government, the regulators, required banks to have half as much capital for a high-risk subprime loan for a capital to loan to exxon. so that incented high-risk lending to low-income individuals. the same kind of thing could easily happen in the future, because the regulators control these capital allocations. and if you think about it it is better than actually owning the bank from socialism much if something goes wrong the bank gets blamed which is what happened in the subprime crisis instead of government and their policies. david: politicians are great for deflecting blame. that is behind a lot what they do. final question, john. all the regs are meant to prevent a kind of 2008 financial collapse. do they do that. >> i think they have absolutely nothing to do with the financial risk in the system. this is my opinion, david. the financial collapse happened because of how the crisis was handled. we needed a correcti

new ones put emerging markets together. cnbc contacted hsbc. the bank declined to comment on the report. the hedge fund credited with spotting the u.s. subprime bubble. and we'll be joined exclusively by thomas monaco in just under an hour's time. we'll get through why he thinks what he thinks. meanwhile, simon is on the phone. thanks for joining us. what do you make of this report by thomas monaco and hsbc? does it stack up for you or not? >> well, let's worry first about what the market thinks of this. you can see the share price reaction today. there is more negative sentiment around the uk. domestic banks and millibands, comments about potential fourth bronze closures than there is in hsbc. more importantly than that, if we look at the credit market, the implied volatility on hsbc shares, it's significantly less than the european bank average. whether it's equity, credit or option markets, they're not concerned about this story. >> yeah. he said -- thomas monaco said, look, eye just gone out and used all the figures that are publicly available. what he's particularly talking about is no one is really looking at the impact of incoming basu

subprime loans when in fact they qualify for a prime loan. so can you remind us the prev l prevalence of this practice and how these new rules will change that practice? >> i can't speak to what others are doing. what we do is to provide quality products at low cost to sort of raise the water a little, if you will, of our entire community, which makes everybody's boat rise. i mean, we are very, very sensitive to trying to improve the lives and livelihood of all of the members in our community at large. so we don't touch subprime. that's why we have the nonqualifying, the balance sheet limitations, plus the taste in my mouth of having to price these things differently when last year i would not have to. so i don't want to do that to my members. >> mr. spencer, now that the qm rules are made effective, can you clarify for us what lending options are still available for low income americans who may not be able to meet the 43 debt to income limit? >> i can't really speak to the broad options available, but i can speak to what we're having to do. so our fear is the following. if you look at the borrowers, they would be subprime except for the fac