so that's the story with usair and american. which involves boeing. and a couple of developments there. we talked about for some time that boeing has a -- has p/e tegsed to the faa to resume test flights as soon as possible. well we also know that they have asked the faa for a fairy flight of one of their 787 dreamliners to go from texas up to washington state. it is likely that that is going to be granted by the faa. meanwhile, "the wall street journal" reporting that boeing is proposing changes to the 787 batteries. those changes have not been finalized. but essentially it would make the batteries in essence safer when they're put back in the 50 planes already out on the ground. the ntsb out yesterday criticizing the faa certification of the 787. there is a press conference later this morning in washington. we'll hear more about the ntsb's thoughts on what's been happening with this 787. but listen to the chairman of the ntsb yesterday. it's clear we're a long ways from this being resolved. >> we're working with boeing and the

usair and american don't have a lot of overlapping routes or hubs. in the end there will only be about out routes out of the 9000 or so that will be served by one airline. they may see fares go up. but look at this. since 1979, prices for an average domestic economy airfare have dropped from $579 then to $365 now though they have started to tick up a little bit lately. so so much for that myth that merging airlines causes prices to go up. thanks for watching me this week. find me on niceback at facebook.com/ali velshi "see you monday at 3:30 p.m. for your moneyly daily". have great weekend. >>> hay there, everybody. it is 2:00 p.m. on the east coast. 11:00 a.m. on the west. for those of you who are just tuning in, thanks so much for joininguous. i'm deborah feyerick. here are some of the top stories we're following in the cnn newsroom for you. people in russia are cleaning up the damage after a meteor blast over theure rales. officials estimated the destruction at over $33 million. more than 1,000 people were injured in the meteor blast. divers looki

the huge merger between american airlines and usair ways. >> there will be a lot of changes for u.s.et's go to brianne carter. >> this will be the largest airline with the combination of usair and american airlines. you will not be looking for u.s. air anymore when you come here to reagan national airport. they will now be operating under the name of american airlines, but will be operated by the present and ceo of u.s. air. we are expecting an announcement to come later today. it will be a couple of months before passengers will see any changes. sources say that once this is a done deal, there will be sometime before the frequent- flier miles and the accommodations for each airline will be combined into one. what about the ticket prices? that is a big concern for some travelers. we have already seen several mergers happen over the past several years. u.s. airways had a merger in 2005. we are expecting a formal announcement to come on the deal later today. reporting live, brianne carter, abc 7 news. >> another big story this morning regarding the death and the mystery boy on in alexa

usair and american don't have a lot of overlapping routes or hubs. in the end, there will only be about out routes out of the 9,000 or so that will be served by one airline. they may see fares go up. but look at this. since 1979, prices for an average domestic economy airfare have dropped from $579 then to $365 now, though they have started to tick up a little bit lately. so much for that myth that merging airlines causes prices to go up. thanks for watching this week. find me on facebook at facebook.com/ali velshi. see you monday at 3:30 p.m. for your "money daily." have great weekend. >>> hello, everyone, it is 4 p.m. in the east, 1 p.m. on the west. i'm deborah feyerick in for fredricks whitfield. if you are just tuning in, thanks so much for being here, spending part of your day with us. these are the top stories that we are following right now in the cnn newsroom. >>> danica patrick makes history as the first woman to win the pole for the daytona 500. that puts her in the best starting position for the race next sunday. she clocks a qualifying s

. >> american airlines and usair or s hoh could what that could mean for the next time you fly. >> a two airline giants, american and usair, would create the largest airline in the world. >> i think it will be better. >> many passengers reacted to the rumors. why are the companies considering it? >> the economics makes sense. they are so compelling. both companies have said it will benefit everybody. >> it is not good. they will control everything. >> stephanie is not sure a new airline would do anything but raise air fare. >> you do not have any choice to get to where you're going. >> a merger would cut down on competition. >> i think we have had mergers before. they always bring about change. sometimes it better service, sometimes worse service. >> nobody knows how service would be affected but it would mean most of the air travel in the united states would be controlled by four companies. >> when you combine airlines, i have been pleased with u.s. air over the years. i hope the quality of service does not suffer. >> they are scheduled to vote on monday. the new company would be ca

gerri: pretty soon that will be full of snow for american airlines, usair ways having a deal as earlyweek. i gave you my take now let's bring in wreck, great to have you on. is was not tightly controlled secret but that will be huge. >> it will be a huge airline weeping over united airlines but you will seize cities with some that are perfectly located but smaller cities like phoenix or philadelphia may now have reduction. gerri: that is bad news. any other changes? >> the good news is it is financially stable they will invest in the product on aircraft recently purchased. but we will pay higher prices. but the good news is competition is almost all gone the other than southwest fighting, but people's wallets control ticket prices but of people don't have enough money to spend it keeps prices from going up and people don't have enough money to buy expensive tickets. airlines have tried to raise prices and it failed twice this year. gerri: over lunch period comic take up the impact of inflation, what happened to price? >> we saw a price increase of five point* 5%. so it is well above t

you already bought -- thought you were paying a lot to fly, a merger between american airlines and usair was could add insult to injury. >> this is the fourth mega- merger in three years. >> in the long term, there will be less competition and this will raise ticket prices. in the short term, we are already going to seek higher prices. >> there are bright spots to this potential merger. travelers may have a better experience in the long run. >> you'll get on airplanes and there is moonlighting and you will look up and the bins will hold your bag. you will sit down in seats that were built in the last two or three years that have better seat capacity than that got accolades from for some travelers. >> i did as a great idea. if it serves us well and we have better service and more access to flights, that would be good. >> dfw see an economic boost where a smaller airports could lose out. >> you will see a bunch of development to occur around there and more hotels and more places to eat. within the airport. that will definitely have a huge economic impact. >> for airline loyalists, reward m

i would think it would be a disadvantage for usair not to have it now. and this would be a disadvantage that would level the playing field for you. >> yes, we would agree with that. >> my last question, i heard you all say that america flies to 130 cities and that usair doesn't like her i think that was the number, wasn't? >> right speed and u.s. air flies to 62 cities that american doesn't serve. so i would think obviously you're talking a 192 cities that would be, anyone who is a customer of either american or usair would pick up an opportunity to fly on one airline, to 192 cities, which would be a tremendous benefit. >> we look at the opportunities to develop the network after the merger, mr. chairman, those 162 cities -- sorry, 192 cities, are the leading candidates for added service. >> and again, i want to close what i tried to start when i complemented mr. kennedy, but usair has shown i think a lot of innovation here at reagan. i notice you're using to gates and you've added probably 30 destinations, 30 or 40 new destinations. you know, all over t

usair directors will only meet after amr's approved mirnlger. is going to come out of this well? >> i didn't hear that last part, but i know doug is the northwest stage, and kirby has done well. i think they can do a great job at american airlines. and i think that's how it should be. american really hasn't distinguished itself in the past decade in running an operation. they had all these advantages and they withered it away. >> where does this leave international airlines now, as it's known? >> i was lying at aig this morning. people forget i followed this industry for a while. british airways, the most profitable routes in the 90s. what this does for aig is it gives it a vast network and customers on its side a lot of optionlty when visiting business travel and leisure travel in the united states. it's a big deal. and it was interesting, when american airlines filed, i was talking to some analysts and some people in the industry over there. they were scared because there was a potential that american could have been split up and delta would h

usair and american don't have a lot of overlapping routes or hubs.about out routes out of the 9000 or so that will be served by one airline. they may see fares go up. but look at this. since 1979, prices for an average domestic economy airfare have dropped from $579 then to $365 now though they have started to tick up a little bit lately. so so much

usair up nearly 60%.arlier this week, we spoke to guests who said there is now a -- finally we have got away from airlines being a social business, either there was a social need tore them and an investor return on that. have we turned the quarter here with airlines? so much restructuring, they are now on a solid commercial footing. >> our industry has a habit of going through cyclical boom and busts. and most people, when you want to make money in the industry is start with a billion and end up with a million. and i don't think that's necessarily going the thang. some airlineses are struggling. they're a knew yiert than than anyone else. but now i'm bringing the world's competition back to the place. >> thank you so much. >> talking of mergers, earlier we asked which corporate merge marriages on this valentine's day you think are meant to last and which tie-ups should be headed to the altar soon. joe tweets in to say apple jcpenn jcpenneys. now we're showing earlier progressive and abercrombie should tie

amr and usair confirming they will merge creating the largest airline in the world.n that deal and what means for the rest of the industry after the break. immediate reaction to the big deal from the president and ceo from virgin america. that is a cnbc exclusive. back in a couple minutes. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. >>> back to the deal of the day, just in time for valentine's day, a corporate marriage, boards of amr and us airways approved a merger, the deal creates the largest airline on the planet, valued at $11 billion. phil lebeau joins us with more. hey, phil. >> carl, you made a great point last hour when he said look at all the large airlines in the u.s., nine out of ten will be by the top four

. >> it has just been confirmed that these two have mercer -- american airlines and usair was combinedo create the world's largest airline with 900 planes and 3200 flights every single day what will the world's largest airline mean for the flying public? ♪ >> it is midday here in london, 7:00 in the morning in washington and 2:00 in the afternoon in the south african capital of pretoria were the countries supporting icon has been arrested in connection with the fatal shooting of a woman at his home. the victim is a 30-year-old model who was his girlfriend. some reports suggest he may have mistaken her for an intruder although police have also said they have been called to investigate incidents of a domestic nature at the same as in the past. this picture behind me is the latest we have of oscar after his arrest. we will go live in a moment to south africa. >> the police said they were called to this day to a town house complex in the early hours of the morning. when they arrived, they found paramedics trying to revive a woman who had been shot an unspecified number of times and sustain

the deal caps a turbulent half decade of bankruptcies and consolidations for the usair line industry. the merger will create the world's biggest airline which will keep the american airlines name. >>> police in california say the manhunt for a fugitive ex-cop is over. but many question still surrounding the case linger. the county sheriff's office is reiterating the fire in the cabin where christopher dorner was hold up was not intentional. this as the coroner works to identify remains inside the structure. we're learning more about the hours leading up to the deadly standoff when dorner is believed to have taken hostages. a hair rid couple says dorner tied them up and put pillowcases over their heads before fleeing. >> we'll have to go through the evidence. some of that evidence is indicating where the officers -- >> my action would be to run. it was. i actually saw him quicker than him somehow. >> meanwhile, wednesday a funeral was held for one of dorner's alleged victims. michael crane was shot and killed during an ambush last week. 34-year-old was a 11-year veteran and leaves behi

. >> new this morning, american airlines and usair ways will meet today to consider a merger.ers say that negotiators are considering the makeup of the combined company's board and an exact role for the ceo of american parent amr corp.. if the two carriers were to strike a deal, it would create the world's biggest airline by passenger traffic. a m r has been operating under bankruptcy since november of 2011. >> here is a live look outside from our roof cam on van ness ave. we will be outside from our roof cam on van ness ave. we will be right back. well, well, well. growing up, we didn't have u-verse. we couldn't record four shows at the same time. in my day, you were lucky if you could record two shows. and if mom was recording her dumb show and dad was recording his dumb show then, by george, that's all we watched. and we liked it! today's kids got it so good. [ male announcer ] get u-verse tv for just $19 a month for 1 year when you bundle tv and internet. rethink possible. when you bundle tv and internet. aoao when you bundle tv and internet. get 36 months interest-free fi

american airlines and usair is half merged on this valentine's day. they're combining to create the world's largest air carrier and an $11 billion megadeal. it will fly under the american name the u.s. their way ceo will take the helm. it will be heldto significant presence in phoenix. the airline say there will be no changes to frequent-flier programs. the airlines are not the only company is getting together this valentine's day. some of the drug makers' products. they forced the pharmaceutical and medical device company to withdraw all earnings and revenue expectation. the impact could mean 50 to $100 million in lost sales. that is business news. >> a warning to residents with small pets. there's been more coyotes settings. >> sex marriage and illinois. the state senate is in session right now. expected to vote. >> the controversialh icpheant dh he killed his neighbor's dog instead. the dogs on their roster to the hospital. riverside authorities are implementing a new policy. to keep garbage cans inside if possible and not to encourage countries. s

cheryl: american airlines and usair weighs close to a merger.nalyst mike boyd is here, it will not fix major problems. dennis: a big storm packing lots of snow. what it means for you or your business or your commute. >> top of the hour. and down 126. and great retail's out today. >> >>, it ran mario draghi thousand mark. and the job reports were not so great. it is a push and pull, there were retailers like macy's and we were talking about that earlier today, there certainly is that environment. the vix, fear index to the upside. we were down 125 points, selling across the board from sector to sector whether it is banks and jpmorgan and merck, you are seeing some across-the-board and transports too pulling back. i want to look at one dow component, some green here, despite the fact of these headlines are disconcerting, up 1/3% but the ntsb looking at a long road ahead for the boeing 787 investigation, looking closely into the batteries. and in japan, fooled the dreamliner until the end of the month and had so many issues. dennis: stocks are off

in a move that would create the world's largest airlines american airlines and usair ways have reportedly a merger. some think that this will create more nonstop flights out of o'hare. stories of raw sewage seeping into the hallways unbearable accommodations, when the vacation nightmare will finally be over for the hundreds on the cruise ship. new details about the gunfight between police in california and the alleged cop killer christopher dorner. president barack obama begins a three day trip across the country to sell the ideas that he laionwi introducing new febreze stick & refresh with command strips from 3m. stick it to eliminate odors anywhere. like this trashcan. in like a flower field. aw man! [ screams ] [ laughs ] stick it almost anywhere. new febreze stick & refresh. breathe happy. ♪ ♪ [ female announcer ] they're all going in the same direction, but in very different ways. and pampers gives all of them our driest best fitting diaper, ♪ ♪ pampers cruisers with 3-way fit. not only with up to 12 hours of protection, they adapt at the waist, legs and bottom, for all the freedom t

gerri: american airlines and usair raised hashing other merger but are they good or bad for consumers? less choice is bad. less competition means higher fares. we also asked a question 21 percent said good and 29 percent said bad. electric car is running out of power. some of the biggest names say these vehicles are not ready for the marketplace. short driving range, high-cost and shortage of driving stations by consumers show low-interest. nissan announced it was moving away from electric's toward hybrids. father of the toyota previous says it is time to move away from electric cars because of the shortcomings it is not a viable replacement for most conventional -- conventional cars. thank you dr. obvious. coming up tomorrow, get ready for something exciting a weekly segment with icons, a top designers, a fashion trend comic entertainment i will sit down with a fox business exclusive interview with super model iman. be here for that. we will see you tomorrow. >> good evening for defense secretary leon panetta and joint chiefs chairman and did to the senate armed services committee th

. >> good morning, signs of a major airline merger -- american airlines and usair was are reportedly close to a deal that could be announced next week. the result would the the u.s. the biggest airline. post of us will stop delivering mail on saturday and this could save $2 billion. there will still be packages on saturday and the post of us will be open. the trend for food indicates smaller portions in restaurants. small portions are cheaper to make they pay off for restaurants to offer them. there was a decision by a monopoly to drop the iron piece and the new peace is a cat. >> the wizards finally snapped their 10-game losing streak to the new york next. >> there was a great defensive effort. this block is taken coast to coast and scores the bucket. the wizards finally beat the new york knicks, 106-96. the washington hockey team is in desperate need of a win. they are heading in the right direction though, they have a game tonight against the penguins in pittsburgh. the penguins beat the caps 6-3 this past sunday. this comes with winning a super bowl -- you get a lot of tv commitm

with usair and american merging we'll be down to six.overlapping routes or hubs. there will be only about eight routes only serves by one airline. >> ali velshi, thanks. >>> the fight over gun control got even more intense after the newtown tragedy. a lot of people say access to assault weapons has to be restricts but rocker and gun enthusiast ted nugent says no, that's not the answer. he's got his own answers and i got to find out what they are in person. that's next in the "cnn newsroom." >> i'm a combat wounded iraq veteran. as i was recovering at walter reed, my community approached me and said they wanted to help build a home for my return. >> people would come and work on my project just because they respected the sacrifice that i had gone through. all veterans have been taught to be responsible for the guy to your left and the guy to your right. other veterans had it as easy as i have so i sat down with my buddy john and we set out to level the playing field. i'm dale beatty and it's my mission to help other veterans get the suppo

with usair and american merging we'll be down to six.routes or hubs. in the end, there will be about eight routes out of the 900 or so that will only be served by one airline. susan? >> ali velshi, thank you. cnn "newsroom" continues now with deborah feyerick. deb? >> hey there, susan. looking at that freeze-dried pet thing -- >> not over it. >> we can't exactly figure out what to make of that. thanks so much. enjoy the rest of the afternoon. hi, everyone. 12:00 p.m. on the east coast, 9:00 a.m. on the west. i'm deborah feyerick in for fredricka whitfield. if you're just tuning in, thanks for joining us. we have so much coming up for you. these are the top stories we're following right now in the "cnn newsroom." >>> a surprising announcement at the vatican today. a spokesman says the cardinals who will choose a successor to pope benedict xvi could meet sooner than first planned. the vatican says the date could move up with all the cardinals are in rome. 117 cardinals, 67 appointed by pope benedict himself, will choose his replacement aft

gerri: american airlines and usair ways are officially merging to create the world's biggest airline.ld have a market cap of $11 billion, much higher than that of united continental which currently holds the title. so who would know who? reports the american creditors would own about three-quarters of the new company. u.s. airway shareholders, about a quarter. notice i said creditors verses shareholders. american has been wallowing in bankruptcy since the end of 2011. this deal brings them out of that all. now many changes resulting from this merger will be felt for some time. the airlines will be able to make changes until after the merger is approved by a bankruptcy judge, and departments of justice and transportation, which could take months. the biggest change you will see is rising air fares. the sensor will be less competition. the big questions around the frequent-flier programs. first off, you will not lose a miles you already racked up. programs and a burst of the past which typically what happens to miles from both the merged into a single account. since going to remain amer

we're expecting an official announcement from amr on the usair merger. that's coming, we think, very, very toon soon. we're going to have that and a lot more when squawk returns. this is america. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morning. 24 hours. zero heartburn. >>> welcome back to squawk this morning. t let's take a look at futures. among the headlines we're following this morning, lots of headlines across the board around time warner, considering spinning off some of its magazines. just a couple of details on what's happening here. there's been a number of reports over the past 24 hours that suggested time warper is planning to sell its magazine business to meredith. that is not what's happening here. it's a very different transaction. >> good. i'm glad to hear that. i write for "fortune." >> here is what's happening. the magazi

. >> usair relaxed their policies, soy didn't have to pay anything. >> reporter: thousands of flightsbooks. chuck sivertsen, abc news, new york. >> this snowstorm could bring the heaviest snowfall in areas in a century. >> coverage continues with meteorologist jim dicky at accuweather. good morning. >> good morning. a crippling snowstorm expected here today. two systems colliding. an area of low pressure strengthening as we go through the afternoon off the eastern seaboard. watching the corridor from new york city on north and eastward. blizzard conditions from long island up through maine through the overnight. worst conditions from noontime on. but the worst of the worst occurs around 7:00 p.m. tonight through the morning hours. by the time all is said and done many spots, 1 to 2 feet of snow. >> our thanks to jim. >>> now to the other top story. the intense search in southern california for suspected triple killer christopher dorner. right now they're focusing in the big bear lake area about 80 miles east of los angeles. that's where his burnt out pickup truck was discovered. he's

however i believe usair stock is down. why is that? too much but it is down and we are moving with this merger moving forward, 25 year friendship, the ceo of usairways, the ceo of a am argos and the role of non-executive chairman of the board until 2014. that is the way it is going to be, these airlines have been suffering greatly, jet fuel prices and the tough economy and this is the wave of the future of consolidation. stuart: we put the prices of for a lot of tickets like we did with continental and united and all rest of it. may be a time to buy airline stocks. in nicole: bay traders love to get on that, they have that inverse relationship with oil, the last thing i want to say is when there's a television on the plane, and do television. stuart: i like to watch fox business, i do. got to go. do listen to this one. most people give flowers or chocolates on valentine's day but how about a divorce? a michigan attorney named walter bentley held a contest this week and he will award two free divorces for valentine's day. he joins us no

when you talk about a deal in airlines, american airlines and usair ways finally moving forward withed merger, $11 billion deal the ceo of usairways stays in place, usairways today pulling back on this news down 7.5%, oil is just a little higher. and jetblue one of the main factors and berkshire hathaway, warren buffett, berkshire hathaway, the balance sheet, liking the expansion abroad and the emerging markets, great brand and great product according to warren buffett and you will hear more right out of warren buffett's mouth, talking to ms. claimant in the 3:00 p.m. show, be sure to watch a key interview on a day when you are talking about a deal, $28 billion. back to you guys. cheryl: despite the news on jobless claims, markets are still in the red. dennis: our next guest says wall street will stay on this positive half suggesting the dow and the s&p could reach an all-time high in the next few months. joining us is president james lebenthol, thanks for joining us. every time we see another five year high in the dow or s&p, instantly the worrywarts come out and say we are too high

. >> the pentagon is cutting the usair craft carrier fleet in the persian gulf to demonstrate the effect looming defense cuts could have on the military. it will have to trim flying hours and lockheed's fighter jets. billions of dollars in automatic cuts known as the sequester are set to take effect march 1st if congress doesn't delay or cancel them. outgoing secretary of defense leon panetta called lawmakers irresponsible. >> it is difficult to believe, frankly, that congress would simply stand aside, stand aside, fail to make the decisions necessary to resolve this crisis and allow the defense, economy and quality of life of america to be irreparably damaged. >> thou, some health and senate republics have offered a plan to cut the federal workforce and use those savings too void the full 85 billion sequester. a similar plan failed to gain any traction last year. however, will this time be different? mark parkinson, former governor of kansas, ceo, and a real pleasure to have you with us. >> great to be here this morning. thank you. >> we would like you to start by looking at this seques

mega deals like berkshire hathway's takeover of hines, american airlines long awaited merger with usair, it's got beale fueled hope that deal making is back. >> and taking a closer look at metals and is mining, lee is with us. before we look at metales and mining, there are some broader take aways from this report, as well. do you agree with the overall sentiment that this year is going to be a much better year for m&a? >> let's hope so. last year was a particularly bad year, lowest deal volume and value since lehman's 2009. we really hope this year will pick up. our report talks about completed deals, so it didn't include the xstrata/glencore deal. it will give a nice boost to 2013 if and when that ever happens. i think everyone is expecting it to happen, but it's certainly dragging on, yes. >> is that emblem attic, the involvement of the chinese here? >> i think for the mining and metals sector, absolutely, the chinese are the biggest users. so they need to be involved from a competition perspective, but more and more from a deal perspective. >> and do you expect that to be one of the

the vast majority of employment for usair is airport-based and renovation-based and maintenance-basedmight lose some senior executives -- we might lose some senior executives. that is a wonderful hub. host: you are thinking the headquarters may move to dallas. guest: so for not all the details are out. i want the phoenix airport to stay a major hub. that becomes an economic engine for the community. host: david schweikert is our guest from arizona. costella and a little bit of phoenix -- scottsdale and a little bit of phoenix. guest: it is a wonderful district. it will be 75 on saturday. host: derrick is a democrat. caller: i voted for republicans in local contests sometimes. it is about the idea. the republican party seems to always be against the majority of america. whenever it comes down to doing something that will affect the people such as the minimum wage increase, they always say, it will cause unemployment to rise. you hardly ever hear them go against something to help businesses. guest: you live in the chicago area? how is the unemployment for youth minorities' right now in

usair and nmr are set to meet. boeing completed what it called a, quote, uneventful test flight of the 787 dream liner on saturday. it was the company's first test since the airlines were grounded more than three weeks ago. >>> carnival cruise ship in the gulf of mexico will need to be towed to port. carnival's triumph, as it was called, was heading back to galveston, texas, when the fire occurred. the ship's extinguishing system kicked in, no injuries were reported. >>> let's get over to ross westgate and kelly evans -- oh, it's ross westgate standing by. ross, there's big market news and big news out of italy. do we know why and what's happening here? >> an announcement has been confirmed from the vatican. pope benedict is due to resign on february 28th. apparently he spoke in latin this morning and announced this move. we don't yet know why. there have been a number of stories surrounding it. he is going to resign. the vatican spokesman has confirmed that in the last five minutes or so. february the 28th is goin

and we go from berkshire hathaway and heinz to american airlines and usair.ening, the mood taking off over the last week. it was a topic that richard bernstein asked goldman sachs ceo lloyd blankfein about when he joined us last month. >> is it possible with these clean balance sheets and fast growth amongst smaller companies we can see an m&a wave coming in the next couple years? this vaeil of uncertainty get removed? >> not only could we, i'll go further and say we should. the conditions are quite right for it. in fact i'd say it's kind of, i can't really explain why it hasn't come up yet. i'll add to it the low level of interest rates. the fact that very low level of interest rates. the fact that industries are consolidating. a lot of opportunities overseas. and i have to tell you, everybody in his own industry tracks a lot of stuff. we track m&a as a percentage of gdp. it's had a much lower level than we should be at this part of the cycle, this part of the recovery. >> joining us right now is richard bernstein. he is the ceo of richard bernstein advisers