steve, thank you very much. schwarzman, the chairman and ceo of the blackstone group.r world economic forum. tom: we will continue this discussion. coming up, a discussion with gary carr. steve schwarzman was talking about the risk of geopolitics, and that is something we need to spend a bit of time on. we will also be discussing the price of oil, below $28 a barrel. ♪ everyone.morning, davos, switzerland. we are looking at the markets, to say the least. up toenda has been blown a great extent throughout this beautiful valley. daniel yergin will be joining us later this morning on oil. right now we are thrilled to bring you the vice-chairman of with his manyarr, years of experience on global wall street. i want you to take a victory lap. last year you framed the banking business as a business in turmoil and tumult. we are seeing that. where is global wall street and new york wall street in 12 months? gary: more of the same. companies are being squeezed, having issues with her cost structure, -- with their cost structure, their profitability. there is still an awful lot

anybody who really touches stock market can't be very happy. >> steve schwarzman here again at the world economic forum. mind,ings in everybody's what is happening in china, and what is happening in oil. no one knows for the floor is. but steve is giving us an idea what he thinks the floor is for china. he doesn't think it is bottomless. he thinks the situation is better than many think and investors are overselling the risk of a slowdown. stephanie: he said it right there, this is a correction. he didn't give us timing on how big and how long this correction will take. the key is to have investors that can withstand the length of the correction. be an whether it will orderly correction. at least it has been reasonably orderly. we haven't seen second and third order a fax and fixed income markets that raise the alarm bells over the stability of global financial markets. everything is pointing down. at least, it is in an orderly way. jonathan: the picture he paints is a story we already know. it is that in between bit that people can't work out. that is where the fragility of the markets

me ask you about what steve schwarzman was saying here. he is saying that china is overdone. is that something that you agree with? scott: yes, i would agree with it. the china economy is based more on services rather than just us buying there's don't. that is not an easy transition. directionng in that slowly. this has not been great. the service status is a lot better, and i would say definitely, at least based on our word, -- all work that this is overdone. david: this has been taking place for a while. how long do you think this --nsition will take to mark will take? scott: it was a very, very short. keeper of time, where it is most dependent,, not so that is a multi-decade transition, so within that, there is a lot of uncertainty. you do not want to watch the chinese stock market and say, boy, that is a good indicator of what is going on in the economy. i do not think it is. the problem with commodities and oil is that the world geared up, added capacity, thinking china is going to grow north of 10% forever, and that did not happen, and now we are stuck with a lot of ove

our line-up includes steve schwarzman. at&t chief randall stevenson and bank of america ceo.

means once we get better resonance on the election, i was with steve schwarzman -- >> i'm sorry. >> ifwares man, the fact that once bernie sanders punched through on other side became clear you could have two non-establishment nominees, not saying that will happen he really think that contributed to near-term volatility. >> i was on maria's show today, not exactly a right-wing zealot, one of these market guys. he made the point people are taking savings from oil, not upgrading to iphone. they're the abouting their iphone fixed. they're doing things they would not do in the past. liz: why is that bad? that is called being smart. depression era thinking our parents had. >> what did you just say? liz: depression era. >> i'm telling you. liz: look what happened after the depression. >> we had world war. >> a lot of pent-up demand. >> hitler destroyed half the world. one thing i take away from the place, i never meant a bigger gatherings of crony capitalists and quasi-socialists. liz: you call daniel lobe crony capital its. >> they don't love the free market. >> they have a one kel they wa

steve schwarzman, steven:. >> there are a number of very well-known finance figures who were extraordinarilyealthy and one of the things that this group has worked hard to do is keep sort of tax breaks for billionaires, really, for hedge funds. one is the third interest loophole, and they wanted -- carried interest loophole, and they wanted to keep it. there was talk the democrats may try to close it. so this brought a flood of money from the finance community into this group to keep that loophole open for them. it means that hedge fund managers pay taxes at 15%, which is lower than almost, you know, any decently paid american pays more in taxes than many of these people. amy: so let's talk about how they built their power. you got a hold of several hundred page history called "stealth: the history of charles koch plus political activities." where did this come from and talk about the four brothers, it is not just the two charles and david. >> it is an amazing family feud that took place inside this family. there was a brothers, as you say, two of them formed one team and two formed the othe

name in business, including the ubs chairman, the jpmorgan chairman, and blackstone chairman steve schwarzman arnie sorensen. all of that is tomorrow. a topt: netflix was performer in the s&p 500 last year. will its plan for growth sustain positive sentiment? ♪ alix: welcome back to "bloomberg markets." i'm alix steel. scarlet: i'm scarlet fu. netflix is betting big on plans for huge global expansion. mother plan payoff? reports after- the bell. joining us now is porter bibb. netflix has built this incredible business off of increasing subscriber growth. every quarter, that is the number we fixate on. at some point, the music will stop and the market sees that it will be mature. porter: no more markets for reed hastings to capture. maybe china. inthe meantime --scarlet: the meantime, he has a lot to do. 140 countries where they do not have local content. they do not buy house of cards, or does the new black, they don't know what it's about. alix: what is the price tag associated with the local economy? porter: content costs are going through the roof. they are making 31 new original shows thi

>> again as supply drains out, one of the big things we're discovering this year, something steve schwarzman year, the volume itself does not necessarily mean there is a lot of liquidity in the market. electronic trade something giving people image of liquidity. every time you have massive selling, neil, markets gapped down, neil. when there are a few buyers, market gapped up. i'm suggesting to you and our viewers there is not a lot of supply selling stocks now above these levels on a technical basis. so my guess is we'll bounce here. you have caught the low, i think for today. neil: thank you, buddy. i know you have a busy schedule there. >> pretty bold prediction. thank you for letting me make it. neil: like fondue or something, yeah, market is down. we have a lot more coming up with my colleagues and friends picking apart what it means. it is a day and snapshot in time but not a very pretty one. what is the trend? to our guest's point, they're not pounces on opportunity to buy as they have in prior downdrafts. what does that mean? stick around, you're watching fox business. it'll get bett

end, there was a civilized discussion between steve schwarzman and the euro regulator.s shorts and was saying i don't invest. i don't get into anything which you regulate. i want to stay out of banks. that is how i make my money. the reply was yes, but, the reason why we have to regulate banks is because banks cost taxpayers a lot of money. that element of friction between the capitalism trying to push forward and on the other side the regulators saying we also have to pick up the bill is very interesting. the other bit is the whole element -- everyone is looking, everyone is thinking what are the areas where silicon valley can come and begin to push into the areas where we are worried about? is a goatee money transfer? currencies? any of these areas? it ties into the first debate. maybe regulators are giving silicon valley a slightly easier and then the others. had a discussion on bank of america on syntactic or let's look at that. >> i come at it and say what does it really do? the intimacy of the distributed power of the smartphone in the hands of a person is so diff

our line-up includes steve schwarzman. at&t chief randall stevenson and bank of america ceo. later this morning bridgewater, north island chairman. plus the ceo of paypal and ebay and many more. of course the timing is perfect when you look at what's happening with the markets this morning. we have the perfect line-up to be talking about what's happening and exactly why. joe mentioned this already but check out the futures. if you're just waking up this is something that will make you sit up and pay attention. particularly with the losses we have already seen in the first two trading weeks of this year. the morning the dow futures are down 334 points below fair value. believe it or not we have been down by 400 points this morning. s&p futures are down by 36 points and the nasdaq is down by 84. overnight in japan, the nikkei dropping nearly 4%. entering bear market territory you can see that was a decline of 632 points for the nikkei. the latest survey out today shows japanese manufacturing moves slipped this month amid worries about the china slow down. european market which