i think jeffrey sachs in many people who stated this, jeffrey sachs great failing was to overpromise. the title of his book alone says it all. he promised is not that he was going to transform the lives of people in a dozen villages but that he was going to give us a model to end poverty in our lifetime. he was going to give us a model that could be scaled up and replicated in any environment. that is what to this day no one has figured out. none of us knows how to do it unfortunately. economists like dull easterly and jeffrey sachs can argue until the cows come home and they will not have a solution because we don't know how people are uplifted out of poverty. we have an inkling and we understand it's related to economic growth winter stand prosperity and wealth are related do we don't really know the drivers are and what exactly make it to happen. otherwise who defended it by now his speech is one thing i want to add is a follow-up to that. i think one thing and i don't know if you have talked about in the book is the one thing that's interesting to mention is that jeffrey is workin

i think jeffrey sachs in many people who stated this, jeffrey sachs great failing was to overpromise. the title of his book alone says it all. he promised is not that he was going to transform the lives of people in a dozen villages but that he was going to give us a model to end poverty in our lifetime. he was going to give us a model that could be scaled up and replicated in any environment. that is what to this day no one has figured out. none of us knows how to do it unfortunately. economists like dull easterly and jeffrey sachs can argue until the cows come home and they will not have a solution because we don't know how people are uplifted out of poverty. we have an inkling and we understand it's related to economic growth winter stand prosperity and wealth are related do we don't really know the drivers are and what exactly make it to happen. otherwise who defended it by now his speech is one thing i want to add is a follow-up to that. i think one thing and i don't know if you have talked about in the book is the one thing that's interesting to mention is that jeffrey is workin

iesco no warren buffett, goldman sachs anchors.an imagine he decided to sue mlb without -- >> excuse me, i don't care about the yankees. we go to scarlet fu, the expert. what do you think? >> i apologize. i live online island. it is the mets for me. >> i don't understand how you move on. i have some small sympathy for him. it is clear he did it. i guess that is libelous. the report is so damming with the specificity of the lozenges he took and the schedule. if you tell him to move on, i don't understand how you move on from the thing you have done your entire adult life. opera willhis soap not go away. futures are -2. calledhelp of a company retrofit, the ceo joins us next. >> good morning. let's get to a data check. quiet day on the markets. 10 year yield, 2.88%. crude, little bit of a bit on hydrocarbons. 94.53. losers, which means scarlet fu will save me. >> a big loser called nu skin enterprises. it is a direct marketing -- >> yet, this is like herbal life but a different product? >> yes. skim product. a chinese newspaper calle

would you rather be, a goldman sachs pre-ipo partner 12 years ago or goldman sachs -- >> 15. >> or a partner today? >> either today. -- either. it was not bad to be a partner pre-ipo, you got $300 million for your stock. now, when it was pre-ipo, it had a problem with cost of capital, very expensive to get private capital. other firms our public had greater access to capital. there were a lot of reasons they went public, greed being one of them. you can still make 10 million to $20 million being a goldman sachs partner, that is pretty good, risky not of your own money. >> we rather be steve schwarzman or jamie dimon? who has more money? >> we are slicing -- >> we are not. >> really thin. 0.01%.f the conversation, would you rather be working at goldman sachs where you don't have to risk any of your own capital, get paid $1 million a year or whatever. or a teacher in the new york city schools -- >> the teacher versus goldman sachs are two different things. >> neither person is risking any capital. was 2001, notage today. if you are a high deals trader at goldman sachs today -- >> it wi

manus cranny at the goldman sachs conference.ys ubs will not spin off its investment bank. he says the current model is working. stephen engle spoke to him in shanghai. take a listen. >> it is a very small elephant and there is no speculation. the investment banking segment is very strategic to us. we have been making a lot of changes to our strategy. the strategy is working. we will focus on supporting our clients. assets andery fine capital that we want to put to work in the investment anchor and a business model that works. therefore, there is no necessity for estimate changes. >> is a spinoff one of the options you are considering? >> we are not considering that option. >> what would be next for you? are you happy with this pace of asset reductions right now? >> we are ahead of our targets that we announced two years ago. one year ago, we announced an acceleration of that strategy. i think that we are happy with the pace of what we are doing and there is no necessity for us to revise our targets. are there other potential ass

morgan to goldman sachs for example will be able to go in and change the the number of shares and the amount of money they have on deposit so we'll get rid of the accounting and they count in fraud as well because it won't you won't be able to cook the books using open transactions on the block chain won't take another example basil three accord which is supposed to be the master agreement from capitol minimum capital requirements for banks that just came out and said that we're going to make it easier you don't keep so much capital on your books because that's the collateral you use all your books that go in through this fractional reserve banking mile and create these cats. nations of multi lever pyramid pirated pyramid ponzi schemes all that get blown but having true transparent counting totally accountable and distributed the total accounting is distributed to everybody on the network so. everyone will know exactly what the banks own as collateral collateral values will be all aaa because bitcoin is a aaa credit big point is aaa credit there's only two or three countries in the wo

which floated the company that took the company public and goldman sachs and u.b.s. the companies paid a stumping sixteen point nine million pounds by the government for managing the privatization were questioned about the price discrepancy by a parliamentary committee in november they denied any impropriety claim the three hundred thirty p. price was correct according to their research and described the whole fiasco as a well executed transaction less than a week later goldman sachs issued a note to its investors advising them that the price of the shares would settle at about six hundred ten p. which they have now settled that now j.p. morgan at the time told the government when they were in for the running of taking the company public the royal mail they said it would be six hundred to seven hundred pieces so they could have gone with that instead they chose for some reason to leave two point eight billion pounds on the table for how did they end up with this losing that money it's the dallas discount it was the kickbacks from some party they were disco dancing on

goldman sachs is cutting their bonus pull down.oes that mean they are losing the best people you go it jpmorgan pays jamie dimon less, does he go somewhere else? point, exactly, you are not raising your own capital, there is no better job in the world and working on wall street. where else can you get paid even less than you get paid? even if goldman sachs cut its bonus pool, where is there anywhere you can get paid anything like on wall street not risking -- >> here are the numbers on it. goldman sachs in this last year, i believe the second lowest they, or the compensation ratio is the second lowest since they went public, but if you average it out, each employee at goldman, would still be owing -- earning about $300,000 a year, compared with the average american -- >> that is better than the nfl. >> what if that have to do with anything? what i am saying is in terms of -- >> what is that have to -- >> i am saying, compared to the americanscome of that $50,000 the year, you are -- >> and what the risks are you taking? you are wor

go to goldman sachs? >> no. draper university.e set the school up so people like that not quite knowing what they would do, but they have spark, they will go out and the heroes. >> what we try to do is encourage them and push them wherever. >> you would not mind if they went back to wall street? >> know if that is their mission. we want them to look at wall street as something to change. we would be looking to change wall street. time we is about changed wall street. >> tell us a bit more. startups growhe and build big businesses. and wall street takes over they make them go public. are a young person in your graduating with an mba and you have a choice between graduating with goldman sachs are going to the likes of google you will probably go with silicon valley. a lot of people will. is new and fresh. they have got a great food court and a great building. they have got a campus at google. is a whole different kind of life. >> if they are engineers, they are paid more. all of a sudden there is a little bit. >> a difference betwee

a down one for profits at goldman sachs. american express's winning recipe mixing expense controls with steady spending by its affluent client base according to one analyst. >> i think three things, myself as well as most investors will be looking at will be spend volumes, cost control and credit performance on tomorrow's print. >> client spending, seen rising 7.5% last quarter with, annex seen delivering on its promise of capping expense growth at 3%. net of the efforts expected to be a 12% rise in the company's fourth quarter profits, once you account for charges that am ex took in the same quarter. revenue growing to $8.6 billion. like american express, steven chewback said the key to how goldman sachs handles expenses in the fourth quarter, specifically compensation expenses. >> we believe there will be leverage in the fourth quarter consistent what with what we've seen. >> meaning that the amount the investment bank puts aside to pay employee revenue. goldman will have expectations for a 28% decline in fourth quarter pr

a goldman sachs report saying stocks are too pricey. and to top it off, more comments from a top federal reserve official. that was enough to give strors jirts. the dow posted its biggest one-day decline in more than three months. the blue chip dow stocks tumbled 180 points, a drop of almost 1%. nasdaq fell harder, losing 61 points, or 1.5%. and the s&p was down by 23. bob pisani has more on today's market action and trader talk about the new york stock exchange. >> reporter: stocks started mixed but moved lower midday and closed essentially on the lows for the day. goldman sachs issued a report on stocks saying valuations were lofty by almost any measure. midday, atlanta's fed president dennis lockhart said he would continue to support the fed's tapering program. >> lockhart came out today and said the fed would continue quantitative easing policy and after that weak nonfarm payroll number last friday, that put a little confusion in the market and set the tone for the sell-off we saw today. >> reporter: another issue for the markets is

of all the top comanagers, jpmorgan, morgan stanley, goldman sachs, goldman sachs is the only, the onlyng on this, not only buy rating, they blow away everybody else in terms of their price target at $65 a share. they rose their price target yesterday at 40%. would say this to investors this is controversial stock now, twitter. a lot of people think it is right for a fall. can tell you my producer julie did a pretty interesting story, can't wake for the lockup period when shares go outstanding to start shorting things and borrow the shares and actually short it. this is something i think, when you goldman sachs does something like this, yes it is a great firm. it is also a firm been known to play these games in the past. investors have to worry. they have to look at this rating as one of the more conflicted ratings in the business, meaning they got paid $26 million in ipo fees and they got the most money and now when twitter needs it the most, there has been selling pressure, they came out with a hail mary pass and it actually did work a little bit. the shares went up i think something

and i had the best teachers in the world at goldman sachs.f the great hedge fund managers of our time, lee cooperman. he put on an investing clinic almost every day of which i never missed a session. hardly an hour went by when i didn't hear a new great idea to explore. you know who i really learned from? my customers. chiefly wealthy individuals from all walks of life. it was at goldman i learned something that still isn't understood by many, and that's individuals can and do beat the market quite regularly. why don't they know it? if they only worked at goldman with me they would see it, they would know what i saw. no, they were all unpractical. when i was at goldman i had nondiscretionary accounts, meaning that i wasn't allowed to invest anybody else's money with my own trading ideas or investment unless i could win them over to make the purchase. remember, i was on commission and made money with buys and sells. there was no 1% fee or 20% for the wins. that came later with my hedge fund. that's where i learned how important it was to talk

goldman sachs is down 2.1%.rt the them, currencies, commodities, these are areas they do well in however not this latest quarter. one thing interesting for goldman sachs, compensation and benefit expenses did fall. so what they're paying out to the folks that work there, which is, they pay out 36% of the revenue and that is the lowest since 2009. they have cut back on that. citigroup talking about the fact that they didn't finish as strongly as they would have liked but they have made substantial progress towards key priorities in 2013. the latest on nu skin, let's bring that up. that is very busy over the last hour or so, halted several times, down 33%, down 38 bucks at 77.12. the low was 67.51. the company says it is too early to know whether previous guidance will be effective. that will be interesting if they have to restate any numbers. they are working with the government and the fact they're reinforcing training and education efforts. meantime the stock is blowing here. ashley: wild day for nu skin, nicol

. >> of exclusive look at the goldman sachs global strategy conference in london. manus cranny standing by with a quick review. >> we've had the european view, we got the japan view and next, all about u.s. economics with the chief economist with goldman's -- from goldman sachs jan had see us -- jan hatzius. chief executive is denying reports and that's what syllabi third-biggest bank will spin off its investment banking business. ryan has more of the details. >> ever sent to join ubs a couple of years ago he has been all about cutting. they close many of the debt trading desks. they are a little beyond halfway through cutting 10,000 jobs. it in an exclusive interview with us, sergio armani said as far as investment banking is concerned, they are done. >> our investment banking business again has been restructured and is up and running and the model is the one you see today. as no need to restructure. -- there is no need to restructure. we are able to generate i would say in a still fairly challenging environment, particularly because the environment was not so pos

they're looking to secure $20 billion in financing from the likes of goldman sachs, mezuho that's according to people familiar with the matter. the question is why are they looking to merge? what can they get out of this deal? it's a very competitive landscape in the united states. t-mobile has done well. they've been acquiring more and more customers. they have an edgy proposition compared to other services available. but the real big goal is to go against the two heavyweights in he u.s., at&t and verizon. there are unresolved issues they have to consider. for example what do they want?

of goldman sachs as well now it collapsed in a heap in two thousand and twelve or was anyone charged with fraud there funny you should mention that that's a chicago firm that rose from the ashes of rap cohen other bankruptcy that was my tried and no one has really been prosecuted for that either although there have been some charges laid by the c.f. to see the consumer financial protect the commodities.

regulated industry and the conflicts of interest that go along with that i mean to think that goldman sachs j.p. morgan every other not only major bank but also medium sized and smaller broker dealer can fund a regulator so that that regulator that being federal will in turn aggressively regulate the industry is is a stretch and in looking at the evidence you know the amount of fines that imposes

i love goldman sachs, i love jp morgan, i love the entire financial sector so if you wanted to play it just on a macro basis, you can go into the etf or the xlf, but really goldman and jp morgan is what i'm watching. > >what would your play be on the consumer and consumer spending just for everyday goods? > >the economic news has been pretty good. i like the consumer staples industry. i like the procter and gambles of the world. i like coca-cola quite frankly. these consumer staple stocks---the ones that have just not really outshined the market but have just trended and stood through the marketplace as rates got incredibly low---these are also going to shine this year. > >will the sun shine on alternative energy stocks this year---such as solar panel stocks? > >i do like it and i think there is going to be so much more money spent on r &d in these stocks and there are two in particular that i like. first solar and then a company out of china called csun--china sunergy. > >moving on to sectors that you would stay away from in 2014.

andrew wilson, the ceo of goldman sachs asset management for emea.lse" is coming up 15 minutes from now. we have a lot to talk about. super bowl, drones, france. >> and you link all that with a bit of pub politics. david cameron, francois hollande in a pub talking about the defense of the realm. what could go wrong? we will talk about that a little bit later. these two will be meeting to talk about what is going on in the defense world and then they will be moving onto a public house very near the constituency home of david cameron. we will be covering all of that. then we will move into the tech story aggressively. google, amazon, what is going on there? these companies investing aggressively in new technology. we will discuss the implications of all of that for the tech world. cannot ignore microsoft today. it looks like it has found its head in the cloud. the boss of the cloud in microsoft could be the business of the whole thing soon. caroline hyde is covering that story for us. and it is super bowl sunday. how can we ignore it? and how do you bu

manus cranny standing by with more from the goldman sachs conference.kostin and he is probably one of the best people to talk to about u.s. equities in terms of tapering. great to have you with us. friday's jobs number, everybody says it is an anomaly. we are in taper mode. we have two little events that could change perspective. how do you look at the market? you had that pretty poor jobs number. anything unsettling? >> no, i think the way to think about the market is the level of earnings. the multiple which should be applied to that earnings growth, that is really the fundamental driver of the u.s. equity markets. interest rates are an important consideration but the rates we are expecting -- the earnings growth should be rising around 8% this year. we will get the final numbers for the fourth quarter results in the next couple of weeks. $108 growing to $116 this year. that is likely to be the principal source of return for u.s. investors. multiple is now at 16 times which is historically speaking a pretty elevated level. >> we are still going to get

the guy to comment for which i went imo too i caught up with the world renowned economist jeffrey sachs on tax evasion and they gave him still big plays on a wall street that is supposed to call but let's start with mr george all's well because he ruffled a few feathers this week by warning that the u.k. could be forced to quit if the organization does not reform and here's what the challenge is not once exactly that the main points now he has been frustrated by what he sees as a storing of the free trade deal between the e.u. and the us by e.u. . my kids themselves i think europe is being a sign up by economies like china and india now the british public will get to decide in twenty seventeen in a referendum if they want to continue as a member of the e.u. now the main sitting points for the british people are immigration social security and interference from brussels and british law especially when it comes to human rights now the temperature public is in a similar situation to britain in the fact that it's in the e.u. but it doesn't have the year as its national currency so i also fe

. >> a deal for goldman sachs not sitting well with some people.is causing protests in denmark and nearly dismantling the government. >> we have come a long way since the phonograph. a look at the future in the world of streaming. >> the braining coats and seahawks going through final paces prior to superbowl forth eight. live in a moment, right here at met life stadium. >> welcome back. these are our top stories at this hour. atlanta slowly recovering, getting back to normal from the snowstorm that nearly paralyzed the city, residents picking up their cars abandoned on the highways. thursday the government and officials admitted mistakes were made. >> the united nations human rights office calling for restraint in recrane, saying reports of death, kidnapping and forrure should be independently investigated, a couple of moments ago, president viktor yanukovych sideline that into law. >> >> while syrian government and opposition leaders have been meeting in geneva, a humanitarian crisis is unfolding in homs. a priest is now calling for help. >> for

you look at goldman sachs and morgan stanley.is clear that goldman sachs wants to remain an investment bank. morgan stanley going more down the asset managers route. cases, thein most investment bankers are very much an integral part of the business. the argument ubs would make is that the investment bank works closely with the wealth management people in dealing with individuals. my view is that it is not beyond the wit of man to come up with very robust service-level agreements to work on that. we have to face the fact that regulators are taking a tougher line. while the investment bank that they have created since they changed things in october 2012 is much more robust, it still has risks. >> if they do spin off the investment bank, what would it means for shareholders? >> it could be quite positive. in our report we do a case study of when americans did the same thing for lehman brothers in 1994. it turned out successful partly because we had good tailwinds in financial services. 1998, ityou look at was the one-year lehman sh

were 24 years old making a choice between blackstone and goldman sachs, what would it be today?> good one, erik. >> i love goldman sachs, as you know, so my heart is always with the firm in particular. blackstone is a great firm, though. it is smaller, more entrepreneurial. it is a tougher choice now, and these private equity firms and something smaller is very compelling today. >> all right, rob. >> that is a noncommittal answer. >> always great to get your thoughts. rob kaplan joining us from harvard. >> when we come back, we will talk about glaxosmithkline. the company says no to driving doctors anymore. >> more in two. ♪ >> you are watching "market makers." glaxosmithkline announced it would stop paying doctors to promote its drugs. some would call the practice bribery. that is going to bank far. the law decides what bribery is. but it is controversial for sure. let's establish for everybody what glaxo was doing exactly. >> it is hard to believe, but this was a totally industrywide standard practice, and it was so for decades. what these big pharma companies do is pay doctor

to the chiefme economist at goldman sachs. kevin, congratulations on your award.served 2013 ended remarkably strongly. it is unrealistic to assume it will be white a strong through 2014. there will be two positives. there has been a slow ongoing recuperation of the banking system credit provision that is -- the we have been very highlight has been important in 2013. i think the ongoing recuperation will continue to support growth. i also think there is likely to be stronger demand in the main sector, a moderate improvement. against that, the reason why growth will moderate this year is the sharp rise in sterling exchange rate. up six percent from the average of the first half of 2013. that is enough to knock around one percent off the level of gdp over a. of two years. we think the recovery will continue, but at a slightly more moderate pace through 2014. about are confident productivity growth. the main problem for the bank of england is rising sterling? >> for now, i wouldn't be meetingd in the january when the minutes are r

goldman sachs could easily get to $200. a lot of upside in goldman sachs. james: right, so i looked at some surveys here that shows that 55 percent of americans support the legalization of marijuana and actually have a very good stock here. njna and medical marijuana inc. they're very much involved in the business of providing the products to the dispensaries in colorado and providing a lot of support services to businesses that are offering both medical and recreational marijuana in the states. i think there's a huge opportunity here if other states go the route of legalization. alan: wine, cigarettes, coffee who cares. angie: and your bonus round question this morning: we are high on stocks. which ones hit new highs this year? etna, direct tv, facebook, or macy's? aland: the answer is going to be all of them. that's always the answer: all of them. i've got this game figured out. angie: it's all of the above. i was hoping to trick you on macy's. you did not fall for it. i have to find some new material. james: i almost fell for macy's. thank you. talking t

of goldman sachs as well now it collapsed in a heap in two thousand and twelve or was anyone charged with fraud there funny you should mention that that's a chicago firm that rose from the ashes of rap cohen other bankruptcy that was my tried and no one has really been prosecuted for that either although there have been some charges laid by the c.f. to see the consumer financial protect the commodities. regulator and they're also have been several lawsuits although not one of them yet naming the the auditor peter b. c. at least not any major ones now do you think the accounting industry was complicit in the failures that created the financial crisis which obviously began in two thousand and seven. certainly there it's sort of the promise of a lot of what i talk about both on my blog in other publications an out when i speak out of balance the auditors are right there in the middle and they work both sides of the equation so for example peter b c is the order of j.p. morgan which was the major banker to an of global global they couldn't be completely unaware of what was going on and o

. >>> and goldman sachs and citi both return key numbers ahead of the bell. analysts expect a rise in citi's profits with the pressure of fixed income trading would probably weigh on its revenue. goldman, meanwhile, is expected to report in both profits and revenue, with reuters forecasting a 24% fall in earnings per share. wells fargo and bank of america both beat estimates in the week. it was a good number from bank of america. 3 billion jump in revenues. so that has everybody a little more excited. >> yeah. the reserve release, patting the bottom line on these banks. to me, that's not fundamental growth. it comes back to you later on. but that's not growth. >> you don't want padding of the bottom line. >> we don't. >> no, absolutely not. meanwhile, there's only one thing more predictable than the quarterly earnings report. mark carney has rejected the cap for a cap on the annual payout. we want to know do you still care about banker bonuses inspect i don't know what her view is. >> i do. i think we're going to have to have an argument about this. >> okay.

columnist jeffrey sachs on tax evasion and they gave in studio. on a wall street. let's start with mr dawoud all's well because he ruffled. feathers this week by war they that the u.k. could be forced to quit if the organization does not reform and here is what the chancellor out once exactly the main points now he has been frustrated by what he sees as the storing of the free trade deal between the e.u. and the us by e.u. lawmakers themselves and these europe is being shown up by economies like china and india now the british public will get to decide in twenty seventeen in a referendum if they want to continue as a member of the e.u. now the main sitting points for the british people are immigration social security and interference from brussels in british law especially when it comes to human rights now the czech republic is in a similar situation to britain in the fact that it's in the e.u. but it doesn't have the euro as its national currency so it also for the president of the country applecart a forum what he makes of osborne's warning. moralists grevious su

had a job offer add goldman sachs and you called your mother and said, you know what?i think i'm going to move to the congo. >> and she cried. >> jon: she cried. she wept with happiness. >> with happiness. >> jon: did you have a job lined up in the congo? >> no, i bought a one-way ticket and showed up there. no one paid for me. i just showed up. >> jon: let me ask you this -- let me see if i can frame this correctly: why? >> if you want to know, the real reason i had read that three million people, now it's five million people had died. no one was reporting about it. >> jon: you were 22. >> yes. >> jon: and you had the presence of mind, the perception and empathy to think this is where i need to go to bring this situation to light. it's remarkable. [ applause ] >> i felt the instinct -- [cheers and applause] >> jon: it's wonderful. so you get there and you call -- you want to become a stringer i guess they call them. somebody freelancing. >> i doesn't want to -- didn't want to become a stringer. i wanted a job. i wanted to be paid to report on what was happening. i got

take a look at twitter goldman sachs raise the price target today at $65 up from 46.d that up by reading still a gain of 1% but they think they have a product innovation with customer traffic to turn into revenue. you know, that twitter has been damaged taking a lot of heat there were some calls obviously ad revenue is tough to come by in a tough environment but goldman sachs thinks that they have upside potential. >> focusing on the market of stocks but then there was a note that the economy was gaining momentum are you invested in nothing if things continue to get better? with ps of the estimate is our guest is a bull who believes the market a buyer is getting stronger as investors take advantage. reagan james it chief investment strategist we are downwind and descended nine points for the dow what is going on today? but tapering will continue. is it overhead from the bad jobs report? >> off there was a lot of individual investors the didn't want to take beguines of postpone tax obligations. off this surprises me because it does not match in the data coming out of t