Outreach department inside the white house. I think its an Intergovernmental Agency outreach, scott, where we will be talking to state and local governments. Its a business outreach, businesses large and small. Trade associations, but i think we want to do is we want to execute a plan out of that office where people feel that they have a friend and advocate inside the white house that will help them. The cornerstone and the prism that were going to look through everything through i should say more appropriately, is small businesses, middle class families, working class people. What can we do from the administration to help those people in the United States with wages, opportunity, retake the aspirational side of being in a working class like, you know, our parents were. People have likened your role to what Valerie Jarrett is doing for president obama. You have even used that same terminology. Youre going to meet with her, in fact, today. I think what i said last week when the role leaked out is i think its a little bit of an over Statement GivenValerie Jarretts close relationship with president obama. Not that im not close to president elect trump but we have a whole team of people that i would say are also close to him. So i dont want to over ste my position there. I will be meeting with valerie and some of her teammates over at the white house. You may remember meeting her at the salt conference a few years ago. We struck up a Good Relationship and a fondness for each other p i would say about valerie is shes a patriot first and partisan second. And she has offered and turned the keys over to me to give me the help that im going to need to hit the ground running. Which we expect to be doing at like 2 00 in the afternoon january 20th. So you lay out the differences of what your jobs will be. You mentioned that there are many people who are close to the president. So you have a stay in your exact lane here. You and i know each other a long time. I like staying in my lane, staying in my core competency. I also, you know, i worked on the transition for the president elect. I often said to people coming in here i want to take my ego and put it in a jar in the pantry. Lets help the most amount of people with the least amount of drama. What should the Business Community and ceos expect from President Trump . Lets put president elect, campaigner trump behind us and hes going to move into the oval office on january 20th. I think the coe rz thrilled. I think some of them who didnt vote for him are coming around. We just saw Lloyd Blankfein from Goldman Sachs, theres a spirit of optimism. I was at 48 hours ago i was in davos, switzerland. I met with ceos, all of which are super positive about president elect trump. We had the monsanto guys last week and their are excited. They say, wow, we have a business advocate, someone with a horse sense for business, commercial instincts. Recognize that we can do good, make profits at the same time, grow the economy, and central to all of this, help working class families and middle class people. There must be some unease though in the Corporate Community with what theyre going to get from this president. Yeah. You look at what the market has done since the election. Sort of ripped higher. You used to sit with us often and talk about the markets and why theyve reacted certain ways around the relationship with politics. I just wonder, just given what the markets have done as it had this great advance and hit a pause and now the dow is at a sixweek low. If that reflects some of the trepidation about what the administration is actually going to do. I said this yesterday in davos. Any time that you have some level of disruptive change theres some natural anxiety, scott, because what people do is they like habits, they like uniformity, and they like consistency. So you now have an entrepreneur at the top of the food chain thats going to be running the american government. So with that i think one of the roles that were all going to have working for him is to just let people know thats going to be totally fine. If anything, its going to be disruptive change for the better. If you think about the dow for an example. Just look at the tax cut proposals that Speaker Paul Ryan and president elect donald trump have which will likely to implement in the next six to ten months. Those tax proposals will yield earnings, not just at the s p 500 but to businesses large and small throughout the United States. Wilbur ross and i were talking about this. What companies do you and i know that are going to grow at 30 next year. The answer is just about every company in terms of the profitability if we can get this tax cut put through. And the market has reacted. Absolutely. Ray dall you was on with our gang at davos this morning. I saw him yesterday. Said the market reacted to what he called the obvious. We expect deregulation. We expect some of these tax changes to come into effect. Sort of the next step is more of the unknown. Lets listen to what he had to say and react to it on the other side. Heres ray dalio in davos. I think the real question is what is a Trump Administration is it going to be wise and thoughtful and well calculating . So when you have Something Like the border tax, is the border tax on, is the border tax off . Is that going to be worked out in intelligently . How will the 1. 3 trillion that was supposed to be raised in the border tax and then pay for other taxes, where will that come through . Were at the stage that weve made the initial reaction to that. But now how these people Work Together and actually operate . And then theres geopolitical issues. There are questions in terms of geopolitical. So this is an interesting question. Is it going to be a thoughtful president or an off the cuff president . Well, see, i actually think that its a combination . Some of the off the cuff thing is pretty well planned. He is one of the most thoughtful disciplined people that i know. Hes a great decision maker. Hes also a great delegator. He knows what decisions he needs to make himself personally and he lets his staff make some of the other decisions. I think on situations like this i think he will be in the war room really trying to dillen nate whats going to happen. I have to tell you in the nine months that bif nn in this caldron with him, when i find him in that situation, hes dispassionate, hes analytical, hes inquiz tive and i would put ray dalios concerns at ease because i think when we lay out the plan and we lay out the full configuration of the plan, american businesses large and small are going to say, whoa, this is a really good Incentivized Program to create jobs, create growth, opportunity, and one of the things we really need is consumption. Weve got to get the middle class and lower middle class who have seen wage declines over the last ten years. Yes, you and i know that they printed wage growth in the last two quarters but if you measure it over the last ten years, disposable income for working class families and middle class families are down, scott. We have to put a plan in place that ignites that. That will lead to global growth, it will lead to global opportunity and also gdp growth in the United States. How much credit do you think the president elect deserves for whats happened in the stock market since election day . You know, i would say big league credit. Did i say that right . I think he deserves it. At tend of the day what you find from him is the psychology has changed in the United States. Investor psychology has changed. The Consumer Confidence numbers are through the roof. Its him and his team that are really bringing together a package of services where people say, whoa, regulations are going to be good. Theyll make us safe. But theyre not going to be overdone to the point where something is restrictive. Just look at the dodd frank situation right now. Community banks are strangled in terms of their ability to lend. That is good for the Community Banking failure side of the component thing. But its not good for small businesses. We need to set the regulations up in a way where there might be one or two failures but theyll never be any systemic banking failure. Thats sort of the common sense approach that the president elect is bringing to his team. Thats sort of the Mission Statement that hes bringing to all of us that execute over the coming months. Its exciting time. Part of the point i guess dalio makes is the ledge lative process in and of itself is messy. Who knows exactly some of these ambitious programs or tax cuts or deregulation is really going to happen. The process of wanting it to happen and then actually getting it through could take some time. And i absolutely agree with that. And i think what as an entrepreneur you have to begin the process of adaptation coming to washington, where washington has been set up and designed by our founder, scott, to be slow in terms of its movement. And so there are certain things we can do right away from the executive branch. There are other things were going to need to negotiate up on the hill. And ill just use an affirmation that Ronald Reagan said, if you go for 100 you may not get it but lets shood for good government, 80 20 and get a great out outcome for the ameri people. How do you think this president is going to be viewed globally. You hosted a panel in davos in which you said of President Trump, quote, could be one of the last great hopes for globalism. Yeah. Others look at this president and they view some of the rhetoric and say, this is not a globalist, this is a protectionist. But hes not. Hes not a protectionist. Its an interesting turn of phrase. It was used in a headline and what i mean by that, the America First strategy that the president elect has put in place is actually very good for the global the economy because if we can focus on middle class people, middle class wage, working class people, ignite that consumption cycle with the fed calls, virtuous circle of consumpti consumption, you will see greater than expected growth in the u. S. The United States is still 23. 6 of the worlds gdp. That lift, okay, well pull the world out of this deflation their specter weve seen. My point b yesterday in the Davos Community is lets get outside of the elite bubble that all of us seem to be living in. Lets go out into the people, whether theyre in france or great britain, and understand the working class struggle thats out there and lets figure a way to create jobs, opportunity, good policy that lift those people up, scott. When we do that, that process will actually lead to more global opportunity. I would say the president is not a protectionist. All hes looking for is free trade deals that are fair and symmetrical to the United States. If we get that done, in some ways thats going to be better for the Global Economy than the current configuration which is not going to last. Some of what you were doing in davos was sort of frame or written as trying to put some of these international fears, if you want to call them that, at ease. Let me play you a sound bite from Larry Summers who was on with us as well. Id love your reaction to what the former treasury secretary had to say. Heres Larry Summers. I think it needs to be recognized that the consequences of rhetoric so far has been a 15 appreciation in the mexican peso that makes every business decision 15 more favorable to mexico relative to ohio, and thats a big step against the economic interests, against the workers who are an important part of the president elects constituencies. How do you respond to that . I think hes making a good point about where the direction of the mexican peso is but i think the point that professor summers is leaving out is lets give it a little bit of time to see our plan get execute and have that plan evolve. I think a couple of things that i said yesterday which i will predict, i think the United States will have an even better relationship with mexico one year from now than we do today. I think people sometimes underestimate the effect mr. In terms of his ability to read people, see people in the way that can create a spirit of a winwin situation between not only the two people but the two nations. And so it is a situation the mexican peso right now. The dollar has gotten stronger. I did point out yesterday and i point out today that there had been strong dollar, great economies in the United States in the 1980s. We had a strong dollar, great economy. Im not going to comment on the dollar per se. Its not my purview to do that. Some would say its not necessarily the president s purview or the president elects purview either but yet he did, right . Wall street journal covered, dollar sinks as trump talks it down. Its more of his purview than my purview. Its good word. I dont want to talk about the dollar. Its not something that i can control and lets let the market control that. Heres what i know about the plan. We execute this plan and we get most of it right and were in washington so lets not say were going to get 100 of it right but if we get 80 of it right, 18 months from now people are going to be scratching their heads where youre going to see wage growth, big opportunity in the United States, disposable Income Growth which will lead to more consumption and all of is a a. Sudden the Global Community will look and say, wow, donald j. Trumps administration is really for the positives and what we can do in the world together which is more commerce, Higher Standards of living, and lets lift some of these people out of poverty. We mentioned china in terms of the type of trade relationship that we have now and the one that you think we need going forward, one with more symmetry is the word that you used. Id want to ask you personally. Youve sold sky bridge. Yeah. To a chinese consortium. How much of that do you think, if any, is china wanting to get closer to the administration through someone like you . You know, i love the way the papers like report this stuff. So there are two investors in the skybridge equity stake now where my equity stake has been fully and cleanly taken out. No earnouts, no nothing. Im fully cashed out of skybridge and i incumbering myself from those business relationship . The two entities buying skybridge, one is hna capital, u. S. Based company run by United States citizens in con junction with Trans Atlantic Holdings bying. Jor george corning, ran deutsche banks Asset Management company, is going to come in and help our Management Team grow the business. Certainly the hna piece is owned by a chinese conglomerate base in beijing. I think these guys are as careful and circumspect as i am in making sure its a full separation and its a bad pun but a chinese wall between me and them pull i know that. They know that. Theyre looking at this as potential Growth Opportunity for them and the United States. I probably shouldnt say this but i think we built a pretty good brand, skybridge capital, and that is going to be an american brand. It will be have an international tie. Theres offices in korea, an office in london. But ultimately this is an american centric business that we built. 200 plus billion is the price tag, i would say thats a decent business that youve built. Yeah, a nice size business. People forget its 41,000 clients, very, very diversified. Its got a great distribution engine. Jay con wright who has been my partner for 12 years, shoutout to jason, built an incredible sales and distribution mechanism. You can take the pipes and plumbing that we built with all the platforms around the world and in the United States and sell a ton more product. People like to quibble about the fact that its a fund to funds, what people are forgetting becreated a burqa bag. For 25,000 or 50,000 the local dentist can getting access to some of the brightest hedge funds in the world, dan loeb and people like that, through skybridge. They get those people with the full risk Management Team, a qualitative and quantitative assessme assessment. When you look at the business the way we designed it, we had three or four suitors for that business. We chose that group because we thought it was the best group to maintain the conversations newtity and stability for the employees, make the customers very happy, make our Platform Providers very happy. And the only thing im upset about is that im giving up the opportunity cost to be a part of that experience over the next five years. The president elect, he gave me my salary last week. I think its one u. S. Dollar. So im a little saddened by that. Youre doing okay. Do you think in any way that this conglomerate was attracted to you and skybridge as a result of your closeness with the president elect . Listen, i really dont think so. This was a marketbased transaction and this was a transaction designed to sell it to somebody that had an interest in growing a u. S. Based platform. There were other suitors. I made sure that this was a fair and free market transaction. But i also had to do something that ill thought was important for my clients and my staff. And so you can sit here and say, me, because i would be getting a question like that from the media about it being a chinese affiliation, okay, why wouldnt you go with somebody else . I had to pick the group, scott, that would be the best for my clients and my staff, indiscriminate lid and objectively. When youre riding up and down the elevator in trump tower there are a lot of chinese tenants in that tower. If ask the president elect if he were here in the studio with us, hey, if you want to have a great relationship with the chinese and great commercial activity with which chinese. We just need it to be fair to the moern worker, fair to the american taxpayer, and in some ways the u. S. Is way less protectionist. If you think about investment in china, if you and i were going to build a business in china right now we could only own 49 of it and thats not the case vice versa. So to me i think over the next four years our relationship with china will also improve but this is a drop in the bucket investment for them. Its a big stake for me because i built the company from scratch. But its not going to have any impact. Let me ask you also about the relationship with russia. When you were that davos you met with the head of the russia sovereign wealth fund, believed to be the First Contact by an official member of the Trump Administration to a kremlinbacked business. What was the substance of the meeting and what can you sort of tell us about the view here . This the interesting thing here. Big message to everyone joining the administration, in terms of adaptability and thinking about what youre doing. Hes been a good friends of mine. Ive known him for the last ten years. We had a social visit. I guess somebody picked it up and commented about it. It wasnt in my official capacity. It was on the 16th or 17th of january. Im not in the white house in that building. It was really two friends getting together to discuss what is going on in the world. And if theres possibilities to make things better. Thats all it really was. Nothing more than that. Sure. But i will say this, as you get closer to the white house and you get closer to being a voice for the administration, i have to start really being careful about who im meeting and what up saying and i respect that. What youre speaking of what people are saying. Mr. Trumps inaugural address. You said it will be very reaganesque. I believe that. What does that mean . What are we going to hear . Very uplifting. Very inspiring. Theres also an aspirational quality to that address. This is a guy that loves people. And what i would say about the president elect that hes captured something that myself included and many others probably didnt see as quickly as he did. That there is an economic angst and theres a level of anxiety in the United States. Were one of the richest nations in history. We dont need to have that anxiety for a large swath of our people. Not just in wisconsin or pennsylvania, many mior michiga all throughout the United States. They need the right advocacy at the top, they need a compassionate commander in chief, someone thats going to promulgate a plan with their interests in mind. And i think hes going to resonate that message here on friday. And that will be the touchstone for great things ahead for the american people. My guess is, is i did say this yesterday. The europeans were super concerned 36 years ago when Ronald Reagan was taking office. They thought he was going to be a disruptive, subverter and do things that will be nefarious. Eight short years later he brought peace to the table and led to the down fall of communism. Amazing prosperity to the United States. And i see the president elect in that lens. I think over the next three years people are going to say, wow, what a great job hes doing. And over the next eight years, his legacy will be that this is a man that really understood the american people. He understood what they needed. Its time for america to feel the self respect and get the respect from the rest of the world that somebody like president elect trump can bring. And im hugely excited about the opportunity to work alongside him. I tell you another thing, hes a lot of fun. I called him yesterday to tell him act the transaction and we had a pretty fun conversation about it. You know, hes a guy who likes deals. Lets just put it that way. He was asking all the intricacies of the deal. Wow, okay, this is great. And, you know, when we hung up the phone, you got to run the free world. Ill focus on that part of it. But he was giving me deal advice yesterday. Ive got joe terranova, jon najarian who would like to get in on this conversation. Joe, go first if you have something for anthony. Sure, scott. First of all, congratulations on the success and it sounds as though president elect trump just appointed our first u. S. Ambassador to the United States. So congratulations on that. On on this any, i need to ask you about dol fiduciary. On april 10th we are going to phase in this rule. Many watching this show will be impacted by it. The other day jack bogle basically said, look, wall street doesnt want this rule because its going to encourage more index passive type of investing. Could you walk us through how removing this rule or holding back phasing it in benefits not only wall street but also main street . Well, i mean, the first thing i would say is i would like to go back to my november oped in the wall street journal where i wrote that 401 k people that have 401 k s do not need a federal bay si sitter. What typically happen, joe, we get a lot of governmental over reach. This dol rule, they misnamed it. They call it the fiduciary rule but in some ways its really a Capital Allocation guideline from theern many federal government. And so when we had the Community Investment act and we were trying to get people to own homes in the inner cities it ultimately led to the Global Financial crisis. If you really read through the rule it is designed to push people into etfs. Thats rarely good for jack bogle and his team. And index funds. Now, i think theres a lot of room for those. No question about that. But if you put everybody in that bucket and we get another stock market crash and another kol lambity, people will be up at the senate having hearings about what happened. My recommendation is that lets leave the buffet i believe a open for the 401 k investor. Theres enough fiduciary standards already inside the wall street system and i dont think we need an extra layer of regulation. Last point i want to make. If people want to put money in a hedge fund, what i know about hedge funds and the reason why this business was very attractive to so many people is that in down markets hedge funds provide a buffer against that volatility and they help people get to their longterm act chew rarial goals. No 401 k holders will own hedge funds anymore and thats a shame for them and they will be missing out on some of the best and brightest investors in the world. I said last point last time but im italian, one more last point. This is a free market. If someone is being charged 2 and 20, the contract is up front. People know what the contract is. They have to look at the performance net of out fees. Why should the government get into the business of deciding that certain fee rates are better than others . I think thats a big mistake. I call this thing the infiduciary rule opposed to the fid shaur rule. Its not my job to make that decision. We will leave that up to other people in the administration but ive been vocal about it for a reason because i know its not going to be in the best interest of the end user. Thats the simple reason why im against it. First off, congratulations on your ascension to this role. I think its going to be very important for you to be here. My question to you is comes in your context of being a portfolio manager. In the last months ive had to wake up and think about what has president elect trump tweeted today. Do you see his means of communication, particularly with regards to twitter use, changing, evolving over time or is this something where im going to be waking up every morning and first thing checking the twitter feed . Well, you know, listen, im going to leave that up to the president elect. I think the medium of tweeting some president ial historian 25 years is going to look back at this and say, wow, President Trump changed the grain in terms of the way hes communicating with people. Usually president s have this very processed orientation and staying things with a lot of neutrality in it and i think the american people, particularly his base of voters, find what hes doing very, very refreshing. And i think once people get used to his style of communication and start to see him the way us on his team see him, i dont think youre going to be that upset about the tweeting. As it specifically relates to markets, my guess is those tweets will have less and less of an impact on markets because what do market s do . We all know this. They adapt. They adapt to the communication. And they adapt to the information thats out there. So i think theres just a little bit of startling in the beginning. But i dont expect that to happen, say, five, six months from today. All right. Were going to leave it there. This has been fun. Hey, thanks. Great to be back with you. Thanks. We do wish you the best and we wish the administration best as well. They did make you look taller on tv which i do enjoy. We propped your chair up. Anthony scaramucci. We have a news alert. The news from john mccagener its going to pay a settlement. This is the s. E. C. Investigation into the ignition switch defective ignition switches and internal accounting General Motors was conducting. Gm settling this saying no admission of wrong doing but agreeing to pay a 1 million fine as it settles the ignition switch investigation with the sec. Back to you. Phil, thank you so much. We do have to take a quick break. Well talk much more about the impact of the Trump Administrations policies on the dollar, central banks, businesses, and the stock market coming up next. Well also hear from Alibabas Jack Ma when we come back. Lets take you right to davos where jack ma is speaking. 5 Million People deliver things for us to deliver the things we sold. The only way we do it is empower the service company, making sure they are efficient. Making sure that they make the money and making sure that they can hire more people. Without owning the whole chain can you do it as effectively . The idea that youre watching amazon being able to deliver things now within hours, literally . We made 125 cities deliver within one day last year. Imagine, ten years ago, deliver one thing from beijing takes about eight days. Now you can deliver to beijing to the city within 12 hours. Its improving. You can never expect these things happen within 24 hours. We have patience. So i think can you imagine 11 sickle day we sold 17 billion and by delivering more than 600 million packages within three days. This is happening. And this is what we feel proud of is not how much money we make. Its not how powerful we are. We think because of the technology we can make the technology very inclusive. That every Small Companies can use it. This is my dream because i start my First Business in 1992 in china as a small business. In order to borrow money 5,000 u. S. From bank took me three months to acquire. So difficult to be a small business. Today we use technology can empower them. This is something i want to do. One of the critiques as you know and it continues to linger around alibaba is the piracy irri issue. The point is right now what the trump vote has done and Republican Congress all right, that was jack ma of alibaba speaking with our own Andrew Ross Sorkin in davos. Theyll continue that conversation. Welcome back to the Halftime Report. Donald trumps economic agenda can have a big impact on your for the polio. Were yoind by rebeck ba a parter son live in new york city for us. Rebec rebecca, nice to see you again. Good to see you, too, scott. Assess for us kind of where we are in the markets and where you think we go from here after what was a nice run and then a pause and now a pullback. I think the run we saw right after the election and then the pullback weve seen are more static trading in the last couple weeks is kind of a great representation of what we get with president elect trump. We have on one hand a big focus on deregulation on tax reform that could provide a lot of stimulus to the stock market and lift equities. On the other hand, when we hear more about trade and tariffs, i think that creates a higher degree of uncertainty and causes people to reassess a little bit. I think its fascinating that year to date we have a lot of nonu. S. Stock markets actually doing better than the u. S. So i think this is going to be a year with a lot of push and pull. Our base case is that we will get some fiscal stimulus this year. We will get some deregulation. So were constructive on equities but we dont think its going to be a Straight Line so were not euphoric. Were not placing all of our clients capital in cyclical stocks. Were very overweight the u. S. We want to have deverse fisz fi indication overseas. Where we get a tweet about tariffs or a trade war, because i think its inevitable that it is going to be back and forth. Sure. But you heard, i hope, part of our conversation with Anthony Scaramucchi who has now an official role within the administration that maybe some of what the noise that you get from donald trump isnt necessarily the real thing and that theres genuine substance there that is going to be pro market, pro growth, pro investor, and then also ray dalio who said today in davos to our gang out there that the market is already reacted to what he said was the, quote, unquote, obvious. And no we simply have to see how all of this plays out and what kind of Administration Donald Trump is going to have. I agree with that, in that, you know, how it plays out. Okay, how quickly does Congress Enact tax reform. Does it get derailed by Supreme Court hearings or cabinet hearings or are they able to fast track it. Will they be able to show the market theres progress all the time . The details on this uks how it unfolds, how it evolves over the congressional session i think is going to matter a lot and at the same time, you know, a lot is priced in now. Weve seen a huge runup in financials and energy in particular. Some other sacramenectors to a degree. For them to continue on i dont agree with a comment made a earlier today on the show about this being a sugar high. I think theres more to it than that. We see it in economic data. I do think for the market to continue to go up we have to see congressional and administrative progress. I think anthony made a great point about communication that is the market gets used to something, it gets priced in, less reaction. I think the one thing that might keep me up at night a little bit is you dont know whats in the tweet. So fine, we get used to tweeting but, you know, the comment made over the weekend about the dollar, president s dont normally talk about the currency. Thats left to the treasury and the fed. What other unprecedented comment could we get . Theres always going to be a risk factor there even if we get more use to the communication medium. We even heard from jack lew yesterday in exit interview with Steve Liesman he wasnt even all that comfortable talking about the dollar as well. Your point is well taken. Talk to you soon. Thanks so much. Rebecca patterson joining us. Bankings dynamic duo. Well hear from jamie dimon and Lloyd Blankfein both speaking with cnbc today. Charter communications hitting a all time high today. Apple doing well also. Hitting highs not seen since november of 2015. Apple is one of the stocks in the cnbc i cue 100. That index is up 36 of the year. For more on that go to cnbc. Com iq100. More halftime with scott wapner and the team coming up. Ma iak whyoftep s s ju f iodes. C3 sanor th iak whyoftep thavk fcapitae. Ted d cash bonyc bt ept c ucaomeah batonarbein s hi, everyone. Im sur herera. Heres whats happening at this hour. World temperatures hit record high for the third year in a row in 2016. And that is first time in the modern era of Global Warming data the temperatures have blown past the previous record for three years in a row. Heavy rains causing flooding in houston as much as five inches of rain fell in the area overnight. Officials say they have received dozens of calls from stranded motorists and more rain is in the forecast for the next couple days. Americans on food stamps will have a way to get their groceries online now because, come this summer, amazon and six other companies will begin accepting food starps. Its part of a Pilot Program by the department of agriculture. And starting today air india is adding a female only row of seats on its domestic flights. Company officials deny the move is in response to alleged groping incidents but it did say it was done to enhance the Comfort Level of its female passengers. Thats the cnbc news update this hour. Over to Michelle Caruso cabrera with whats going on power lunch. Cl idyo savher l welcome back to the Halftime Report live from washington, d. C. Today. Financials are the best performing sector since the election and two key ceos see more upside ahead. Goldman sachs ceo Lloyd Gla Blankfein was in davos today. I think were at the beginning of a change in a cycle. I think there could be a lot more room. And if it goes but if it falters or something goes wrong or a risk pops up that we didnt anticipa anticipate, it wont. But my base case is it can keep on going. For banks and the Interest Rates obviously we benefit by that. Always disclosed that. I think a stronger economy, you know, banks benefit from that. And the third is some reduced regulatory environment, banks may better, that remains to be seen. I think the market pretty much anticipates some of it. Not all of it because it hasnt happened yet. All right, guys. What do you think . I mean, youve got blankfein changing the cycle, dimon, the point hes making is not everything has been baked into the market at this point even given the run the financials have had. Joe . Judge, i was just going to respond or doc. Jamie dimon, thats what we were talking about when we saw that clip, is that jamie, i think, one of the reasons he didnt want to take a position in the administration is he sees 30, 40, maybe 50 upside out of jpmorgan stock. I would not be surprised about that at all. And blankfein echoing that kind of sentiment as far as saying, hey, this is just the beginnings of whats going to happen when you change sentiment. I think both those guys were pretty bullish. I think when you look at jpmorgans comments over the last couple months, in particular coming from jamie dimon, he is asserting so much confidence and i think thats unique from what we heard from jpmorgan over the last couple of years. Its one of the reasons why i own the stock. But scott, ive been rolling different positions, owning Goldman Sachs, getting out of the Goldman Sachs. What i like right now having the big five reported and seeing the significant increase in trading revenue that we saw not just from Goldman Sachs up 78 but how about Morgan Stanley over 100 something percent, it looks to me like the per farm mans might be right, that Morgan Stanley of the five might be the crown jewel. Pete najarian have spoken about bank of america. I own bank of america. I like the way bank of america is trading in the wake of actually performing the least the least increase in trading revenue of the five. The point is is that every day over the last week minimum we have asked the question whether its too late to get into the financials given the run theyve had the since the election. Jamie domd basically told you today, no its not. I completely dpragree with t. What were missing here, you just had the Bank Earnings come up, a table of them. Both of them were beats. The banks have been trading off the past few weeks. I think thats entirely tied to the ten year. Its in lockstep with the ten year. So where does the ten year go from here . I think it goes higher for a lot of the reasons that we agree with. Theres going to be deregulation, economic growth. Look at the oil patch where youre seeing production start to climb as the reit count claims. All of this will factor through into higher economic activity. A more aggressive fed and higher Interest Rates which all bodes incredibly well for these banks. Scott, to your question, it is not too late. Now is the pause that allows people to get into the sector. All right. Also joining us today from boston is Asset Management ceo carrie firestone. Im wondering what your thoughts are on the financials in light of what you just heard from messrs. Blankfein and dimon. Hi, scott. Hi, guys. I would agree that the financials are a sector that should out perform over the next couple years. Let me give you four very quick reasons. One, theyre cyclical and the cycle seems to be improving. Two, deregulation is positive for them clearly. Interest rates are going up. Thats good. And lets remember that for the past three years never mind the last eight years, financial stocks have underperformed. And the cycle turns every few years and this could be a good time. Its not just stocks that Silicon Valley bank or first republic, Goldman Sachs, et cetera, have gone up very quickly. They might come down some but there are stocks like aig, for example, other insurance companies, blackstone is another financial, they havent moved very much. And i think theyre attractive rate here. What about the overall market . Would you use the word attractive right now given sort of where we are . Well, you know, thats a tricky word. Were near an alltime high on the dow of course. The you know, the s p is very high. But do we think that the market can go higher . If the economy moves up and earnings grow, which they should with lower tax rates, definitely, around higher gdp consumer spending. I think we can pick our spots right hire. Were getting an opportunity to find attractive names in this market. Carrie, its good to talk to you today. See you back on the set sometime soon. You bet. All right, carrie firestone. A quick clarification for you. While selling sky bridge capital, he is stepping down from his role as comanaging partner and will no longer be affiliated with the firm or salt conference, spun out as a standalone entity. That will be run by Kelly Oconnor and victor. Netflix set to announce earning s after the bell. What should we be doing ahead of these numbers today . I dont see a particular reason to buy into the print. Expectations are highest with this name. Its had the biggest intra quarter moves, right at that 52week alltime high in the stock. Domestic subs, international subs, in the quarter and in terms of the guide. And over under is about 50 50 on those numbers. If theres any correction, thats the point you want to get aggressively buying the stock. A year is all said and done, sub ads higher than this year than last year and thats what takes the shares higher. If you break down the expectations for the domestic market versus the international market, im not sure if you heard about the comments David Einhorn made in his letter yesterday where netflix mirrors a position of what he called a bubble basket and it merits a position there because its domestic market has matured. How would you respond to that . Domestic markets are greater in 17 than 16 its clear evidence that the market hasnt mature d. We think they can take that to 60, 70 million subs long term. Theyre talking about taking it from 60 to 90 million long term. The market is highly skeptical of the upper edge of that bound. Were going through this seismic shift, away from paid tv subscribers toward streaming subscribers and thats why amazon and so many others are spending time on this space. I dont think were in the last end of the scurve. The question is whether were in the middle of it or not. It remains stand alone for the calendar year 2017 . Yeah. Were bullish on the stock. Top pick in the middle of this last year. Our thesis has never been that this company gets taken out. Given the size of that kind of deal in order to make the numbers work. I mean, very few bidders could do that. And thats not part of our case. We think fundamentally, the stock is attractive, 8 to 10 in earnings. Earnings power by 2020. That, we think, justifies a 2 stock in two years. Thats an attractive return from here. Well make that the last word. Mark, talk to you soon. Mark mahaney joining us from rbc in san francisco. Jackie deangelis now and the futures crew join us. Opec out. Finding a smaller oil supply, flagging that u. S. Shale production is also ahead. Oil prices are lower today. Were watching crude at the session low. Will u. S. Production cap oils rise . It will certainly help. We learn this had morning that shale producers are ramping more quickly than we had expected. It looks like they will have ramped by 250,000 barrels a day. Thats the sizeable portion of the cut we saw opec Institute Even though they say theyre going so far, so good. It seems that by the middle of the year, shale production in the United States will take a big bite out of any impact that might have. Crude level as we approach 51 . 51 to 55 range will be something were stuck in. U. S. Producers and, yeah, when we get to the upper 50s, we saw that two years ago, they came online big time, pushed prices down. Same time were seeing higher lows as opec talks about cuts. Were stuck in this range 51 to 55. We havent really complete this had head and shoulders bottom pattern yet. I predict we stay along this line until we get some huge demand picture, infrastructure from either asia, india or the trump package here in america. The demand curve needs for us to change to get out of this range. A lot to see especially with the inauguration friday where these policies lead. For more futures now, head to futuresnow. Cnbc. Com. Catch us there live 1 00 pm eastern time. For more half time stick with us after the break. Bi soi n ing i seeinnforma. T ths hplvicetdadupcash ononel sts wiouananto e,heff t tmarerein fe. Ne50er pso were back with unusual activity. Doc . Somebody that made money and then roll out and do it again. Thats whats going on in Hospitality Properties trust. Beginning in december, they bought a bunch of calls in this one. Theyve already made triple their money on that purchase. Now they took profits today, ran them from 50 cents to 1. 90 and theyre buying the march 31 calls. Theyve bought the january 30s a month ago. Now theyre buying the march 31 calls, scott. I jumped in with them, bought those. Ill probably hold them for at least a month. Interesting stuff, doc. Super bullish if they rolled them again. Yep. Give me a final trade, joe. Charles schwab report this had morning. The report was soso. Price performance has been good enough to stay in the stock and i believe it continues to move higher. Qualcomm, news that the fts is suing them for antitrust concerns. Cheap stock that has that sort of news priced into it. I think this is a great buying opportunity for qualcomm. Good stuff. See you on the set tomorrow. Look forward to that. Right now, power starts with Michelle Carusocabrera right next to me. Here is whats coming up on power lunch. Florida governor rick scott will be with us. Plus new developments in the big border adjustment tax debate. Not the border tax, thats what president elect trump talks a lot about. But border adjustment tax through the Corporate Tax code. Douglas egan will weigh in. Hes a supporter. And later exclusive access inside americas most