At one poi the dow jones was off 250 points. It finished down 195, at 18,143. The nasdaq fell 49. And the s p 500 was off 20. The reason for the swoon, a bloomberg report that some hedge funds cut their exposure to germanys Deutsche Bank. That sent shares of deutsche ba to an alltime low and rippled into the u. S. Financial sector. Thats because the report was reminisct of the financial crisis, when investors sold on news of counterparties pulling business with banks like lehman br and bear stearns. And that nervousness seeped then into the broader market. Bob pisani explains why. Reporte the markets were fairly quiet midday when a report from bloomberg on deutsche dropp the markets. They reported some hedge funds that cleared derivatives trades with the banks and withdrew some positions, a possible sign of concern about doing business with the bank. Its not much of a story, but it did revive long dormant memories of 2008. Deutsche b dropp 7 . European banks about 3 . U. S. Banks dropp
It is worth 8. 5 billion. Given preferred bidders status. Zealand shouldw be prepared to introduce further easing. The imf says it continues to dollar well and the kiwi is less overvalued than it once was. The number of People Killed in saturdays earthquake in taiwan has reached 37. Hong kong has condemned writing that left rioting one Police Officer unconscious. Police have been called in to shut down illegal protesters blocked streets and attacked passersby and warning shots were fired. Those are the headlines from Bloomberg News powered by over 2400 journalists around the world. Much of asia is closed for the lunar new year. Francine welcome to bloombergs davos debate. I am francine lacqua. Where is the chinese economy headed . With the new five year plan being presented in 2016, how can the worlds secondlargest economy shift gears without stalling its Growth Engine . And what does the market volitility tell us about the perception of china, and the task facing chinese regulators .
I apologize, did not see you there. Go ahead. Is, we do suggestion everything. Congressmen, running for offices, only can run for one month. One month. That way we can get rid of all of this month. All of this money. All of this money. Senators, everybody, should be able to run for just one month out of the whole year. We get everything we need to know about them in one month. Then we need to do one other thing. All donated money should come from us. We should have it so that one a year, once everyone in the United States donate one dollar or two dollars. And that is it. That is all they get. Host last caller. I appreciate the call today. Will take our viewers to the Senate Health committee where education secretary john king is set to testify about the everyentation of the Student Succeeds act, which has been signed into law as a replacement to no child left behind. That is up now it we will see you back here tomorrow at 7 00 a. M. Eastern. [captioning performed by the national captio
Pricing scandal intensifies. Good morning, quick look at u. S. Futures and were expecting a bounce back in todays trading session. S p 500. Seen up by 12 points, could add 104 points even. Up triple digits and the nasdaq higher by 26 points. This is after we closed lower in yesterdays trading session and one of the biggest factors was walmart taking 44 points off the dow. I want to talk about another company first. Netflix. Third quarter earnings disappointed missing on the top and the bottom lines. The company cites low subscriber growth in north america adding 880,000 new users versus 1. 1 million. For more on the numbers she filed this report. Earnings came in a penny lighter than wall street projections. Total subscriber numbers grew better than expected to 69. 17 million around the world but that was driven largely by International Growth while u. S. Subscriber growth fell a bit short. The company says that was in part because of the transition to u. S. Chip cards making it harder
Christine lagarde, the managing director at the imf. Fang xinghai, vice chairman of Chinas Securities Regulatory Commission and director general at the intercontinental economic department. Gary cohn, president at goldman sachs. Zhang xin, chief executive officer and cofounder at soho china. And ray dalio, chairman and chief executive officer at chief Investment Officer at bridgewater associates. Thank you so much for joining us. Ray dalio, is there something that the west misunderstands about Chinese Markets and does that exacerbate the volatility we have seen the last few weeks . Mr. Dalio i think there is a lot the west does not understand about Chinese Markets. I think the essence of whats going on in china is an adjustment. They have four major challenges. They have a debt restructuring challenge. They have an economic restructuring challenge, so they have to come up with a new model for the economy. They have a Capital Markets challenge. To build in an efficient way that circulat